Credit card debt is not difficult to overcome. You have to take the right steps so that you can successfully come out of debt. Regarding the different ways of being free from dues, debt settlement is always preferable than bankruptcy. You must be wondering why? This is because a settlement program does not come with the several disadvantages and negative effects of bankruptcy. The reasons for choosing debt settlements over bankruptcy are aplenty. A settlement program relieves you from your financial problems permanently. Once you have settled a deal, you can relax. You just have to pay the amount that has been decided and approved by your creditors and you can be free. But, in bankruptcy, it is not so. It is a misconception that bankruptcy covers all kinds of dues.
There are certain dues like back taxes and student loans that do not come under the purview of bankruptcy. That means if you file for bankruptcy, you run the risk of parting with only a part of the total balance. This is not at all feasible because then, you still have a part left which you have to get rid of. Bankruptcy can also adversely affect your finances. You can face a lot of difficulty buying a new car or house. What s more, even renting a house or car can prove to be a momentous task for you. It does not stop at that. Your security clearance status can also be negatively influenced by bankruptcy. However, a settlement program does not come with such trappings. You need not lose your sleep over your security clearance status or whether you will get a new house or car in the future. Property loss is another negative factor about filing for bankruptcy.