Don't underestimate yourself by assuming that you are the only one who is facing the problem of credit card debt.
These days many other individuals are experiencing the same situation.
In fact it is correct to say that half of the American citizens are going through the same phase.
The present economic crisis has really bought many people towards the pool of credit card debt, the decline in wage rate and increase in unemployment level has really made the financial conditions of people very slim.
In order to take people out of this burden, the federal government introduced the option of debt settlement and bankruptcy in market.
These two are the legal ways for the elimination of debt.
Both methods are legal and operate under the full authority of the government.
In this giving article you will come to know about the pros and cons of each method so that you can get the idea which method is best for you.
• Bankruptcy: this is the oldest way for the reduction of debt, bankruptcy brings fast reduction in the amount of your debt but at the same time it brings negative impression on your professional and personal life.
In fact it is true to say that bankruptcy is really a big threat for your credibility.
Its major drawback is that it makes your credit report extremely bad, due to which you can not avail any facility provided by banks and other financial institutions for the next several years.
The process of bankruptcy is also expensive as the legal lawyers charge high amount of fees in return of their services.
The process holds many legal tests and other official paper work.
• Debt Settlement: the process of debt settlement is the legal option that can bring 50 % elimination in the amount of your debt.
The process is well performed by professional negotiation companies.
Few tests and other official documentations are required for settlement process.
The companies charge minimum amount of fees only when they deliver the services properly to you.
From above conclusion, you can easily judge the debt settlement is far better option as compare to bankruptcy.
Via settlement deals you can save your time as well as money.