Beware The Dangers Of Debt Settlement And Filing For Bankruptcy
You're over-extended. Drowning in debt. You're not sure you can cover the minimums for much longer. You've missed more payments than you want to think about.
You're in a situation where your credit score is going from good to bad to worse.
And that's a big deal!
A poor credit score affects your ability to get important loans such as mortgage, car, or even credit cards.
Bad credit makes these loans more expensive (which doesn't help paying off debt), or stops you from getting these kinds of loans you need to live and get ahead in your life.
Does Bankruptcy Or Debt Settlement Make Sense?
Maybe. But there's more to the problem.
Most people don't realize that bad credit affects other areas of your life that have nothing to do with loans.
For example, bad credit can stop you from moving out and renting a new apartment, getting a better job, or even getting a cell phone!
As you can see, once debts get out of hand and your ability to pay them takes a hit, you end up stuck in a vicious cycle that is difficult to get out of.
But there's more.
The stress alone makes many people feel helpless. I see this all the time in my office.
The non-stop creditor phone calls, the strain on your personal relationships, lost sleep, and your health takes a beating, too.
How are you going to work to earn money to pay off your bills if you can't sleep well, your phone doesn't stop ringing, and you can't think straight?
A few options exist to put a stop to all of this, but they have their dangers.
Bankruptcy Or A Debt Settlement: Solution Or Curse?
Although these could be effective they can also create additional problems down the line.
For instance, bankruptcy takes 10 years to come off your credit record and not all debts can be wiped clean. There many other dangers to be aware of when using bankruptcy.
Debt settlement has its own landmines to tiptoe around.
For instance, you could owe taxes ON your settled debts. Yes, you read that right. The government may treat your settled debts as income and send you a tax bill!
How are you supposed to pay that?
Which Option Is Right For You?
The best way for me to answer that is to meet, talk, and review your paperwork in person.
Your situation is unique.
But if you do nothing, or if you delay, that's when the worst will happen to you.
Call my office for a complimentary consultation, there's no cost and no obligation: call (866) 651-6118.
Chris T. Nguyen, Esq. Call (866) 651-6118