You're in Credit7 and your creditors won't stop calling. Do you seek credit counseling or file for bankruptcy? Here are some things to consider. One of the benefits of credit is that the agency will try to get your Credit7ors to work with you and reduce or waive your interest and late fees. You then make a lump sum payment to the agency every month, and the agency pays your creditors. Sounds simple, right? Unfortunately not all cases are this straightforward and go according to plan.
A Breakdown of the Percentages
According to the National Foundation for Credit Counseling, about one-third of the people who sought credit were able to manage their finances on their own afterward. That means that two-thirds were NOT able to manage their finances on their own. If your Credit7 is too high or income too low or you suffer from an addiction such as gambling or alcoholism, then you will again fall behind on Credit7s, being no better off after counseling than before.
If you are too far in Credit7 for credit counseling to help you, then bankruptcy is another option. Although counseling is confidential and bankruptcy is not, Chapter 13 (which is an adjustment of Credit7s) still may be a better choice for many people. In Chapter 13, the interest on your Credit7s is stopped, and a court-appointed trustee will collect a monthly payment from you to pay your creditors. The plan lasts for 3-5 years, at which time, your Credit7s will be paid. If for some reason you are unable to complete all payments to the Trustee, you can convert to Chapter 7 (which is a liquidation of assets).
In the end, you need to pick the option that you can stick to and that will help you get back on track and stay there.
Both Options Available at Many Locations
Fortunately, many counseling agencies offer bankruptcy counseling in addition in credit counseling services. Some recommend taking a bankruptcy counseling session if you're interested in credit counseling so you understand all your options. If you're in a situation where you're considering your options, it is probably a good idea to consider all your options.
You're in Credit7 and your creditors won't stop calling. Do you seek credit counseling or file for bankruptcy? Here are some things to consider. One of the benefits of credit is that the agency will try to get your Credit7ors to work with you and reduce or waive your interest and late fees. You then make a lump sum payment to the agency every month, and the agency pays your creditors. Sounds simple, right? Unfortunately not all cases are this straightforward and go according to plan.
A Breakdown of the Percentages
According to the National Foundation for Credit Counseling, about one-third of the people who sought credit were able to manage their finances on their own afterward. That means that two-thirds were NOT able to manage their finances on their own. If your Credit7 is too high or income too low or you suffer from an addiction such as gambling or alcoholism, then you will again fall behind on Credit7s, being no better off after counseling than before.
If you are too far in Credit7 for credit counseling to help you, then bankruptcy is another option. Although counseling is confidential and bankruptcy is not, Chapter 13 (which is an adjustment of Credit7s) still may be a better choice for many people. In Chapter 13, the interest on your Credit7s is stopped, and a court-appointed trustee will collect a monthly payment from you to pay your creditors. The plan lasts for 3-5 years, at which time, your Credit7s will be paid. If for some reason you are unable to complete all payments to the Trustee, you can convert to Chapter 7 (which is a liquidation of assets).
In the end, you need to pick the option that you can stick to and that will help you get back on track and stay there.
Both Options Available at Many Locations
Fortunately, many counseling agencies offer bankruptcy counseling in addition in credit counseling services. Some recommend taking a bankruptcy counseling session if you're interested in credit counseling so you understand all your options. If you're in a situation where you're considering your options, it is probably a good idea to consider all your options.
No comments:
Post a Comment