Avoid Bankruptcy

Written by Amy Hall
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Avoid bankruptcy if at all possible because in the long-run it will save you a lot of grief and aggravation, but most importantly, it will save your credit. Many people think that their financial situation is so dire that filing for bankruptcy is the only way out of the hole. But unfortunately, what people tend not to realize is that bankruptcy stays on your record for seven to ten years, and leaves a very bold black mark on your credit report.

If you are struggling to pay your bills and you have creditors calling you around the clock, it may be a wise idea to get some credit counseling. A good credit counseling agency can help you put your financial situation into perspective. They can help you to determine what your options are, and more than likely they will help you to avoid bankruptcy by putting a plan into action that will help you reduce your debts.

Taking It One Step At A Time

The first step to debt reduction is to take an honest look at how much you owe and to whom. Then, once you stare this demon in the face, you can begin to make it retreat with an intelligent plan of action. Remember, there are many reputable credit counseling agencies out there that can help you do this so you don't have to be afraid on your own.

Some options that may be open to you are having a credit counselor negotiate with your creditors on your behalf. You may be able to reduce the amount you owe each month, cut your interest, and stop late payment fees altogether. You may also be able to take out a consolidation loan that will make it easier for you each month because you will only have one payment to make instead of many. Whatever approach you take, just know that by doing something you are already taking a step in the right direction.

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