When we have lots of options and many ways to go, on first, it is very obvious that we will find ourselves confused about what choice to make and where to go.
Bankruptcy vs.
settlement credit card debt is a very similar one in this scenario.
A huge number of companies providing more or less same services, shouting they are the best with a verity of bright possibilities.
Solution to this I am giving you a brief idea about bankruptcy vs.
settlement credit card debt, which will help you to understand both the options and will make the decision easy for you.
There are a couple of things one should know while comparing bankruptcy vs.
settlement credit card debt.
The foremost thing to know here is that in a settlement you stop paying the installments to ensure your creditor that you need a reduction here and make a bargain on it where as in a bankruptcy you clearly mention that you are unable to make any repayment and thus going bankrupt.
Although both the decisions will affect your credit rating and your report will show a negative sign.
I must say that while making a choice in between these two, debt settlement is better than the bankruptcy, because even in a negative sign, it is not as harmful to your credit score as a bankruptcy.
But in a settlement as you stop paying the installments to your creditor, it is very necessary then to make a quick negotiation for a lump sum amount where as in bankruptcy you don't need to pay anything.
It is also to keep in mind that in case of unsecured debt while you have decided to go bankrupt, your creditor will get nothing because there is no security involved.
While going one-to-one with bankruptcy vs.
settlement credit card debt, it is all about keeping your options because once gone bankrupt your credit ratings will go down almost about 100 points where as in settlement although it shows a couple of months or even years gap of the payments but in the end report will show that a settled amount was paid.