Many people believe that personal bankruptcy is their only alternative when they have too much debt. While bankruptcy is necessary for some people, there are other options. (To learn more, Canadians should research bankruptcy in Canada, and Americans can also read more about personal bankruptcy).
A debt consolidation loan is an option for many people, where you combine all of your high interest debts, like credit cards, into one lower interest rate consolidation loan. In most cases you need good credit, or a co-signer, to qualify, so a debt consolidation loan will not be the solution for everybody.
A debt management plan through a not-for-profit credit counsellor is another option to repay your debts and avoid bankruptcy. In many cases the credit counselor will negotiate a low or zero interest plan, so all you do is repay the principal with no further interest.
If you can’t afford to make a debt management plan, Americans can consider a Chapter 13 Wage Earner Plan, and Canadians can consider a consumer proposal to repay a portion of their debts. It is only after considering all alternatives that bankruptcy should be considered.
There are other approaches, so please read our special report on How to Get Out of Debt Fast Without Filing Bankruptcy today for more information.
Posted by Editor Bankruptcy Alternatives @ 6:41 pm