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March 18th, 2008
Pros and Cons of Chapter 13
Posted in Bankruptcy, Credit, Debt, Finance
We here in U.S are on the verge of experiencing a credit epidemic. The quantity of credit card debt has hit an all time high and we are close what may be a recession. Thus leaving many people with fewer dollars in there pockets and more debts that they have to pay on. In this article I will go over the pros and cons of the diverse available methods of credit card debt relief.
Credit Counseling
Pros- One monthly payment, lower APR, fixed payment structure.
Cons- Long term repayment, stringent program rules, most do not complete program, obtaining a mortgage on the program is almost impossible, usually payments are close to what minimums were before joining, one missed payment can result in being kicked off program.
Bankruptcy:
Pros- Upon qualifying for Chapter 7 full amount of debt is discharged, the collectors cannot call and harass.
Cons- Long term negative effect on future credit, lifelong public record, change in bankruptcy law made Chapter 7 very hard to qualify for, court ordered repayment process.
Pros- Great savings on debt amount owed, fastest way to get out of debt, not made a public record.
Cons- Short term negative effect on credit score, dealing with collectors, possibility of lawsuit.
Of all the debt relief routes above the the most popular nowadays has become debt settlement. However what really determines which option is right for you really depend on the current financial predicament that you are in. For Americans trapped deep in debt but have money to pay a portion of it off then debt settlement would be the correct choice, to help escape bankruptcy. Those who have smaller debt amounts and have no issue making the payments they currently have plus more, than credit counseling is better. Then of course for some the only course of action is bankruptcy.
Credit Crunch » Pros and Cons of Chapter 13 says:
[...] Finance Information You Can Use wrote an interesting post today onHere’s a quick excerpt We here in U.S are on the verge of experiencing a credit epidemic. The quantity of credit card debt has hit an all time high and we are close what may be a recession. Thus leaving many people with fewer dollars in there pockets and more debts that they have to pay on. In this article I will go over the pros and cons of the diverse available methods of credit card debt relief. Credit Counseling Pros- One monthly payment, lower APR, fixed payment structure. Cons- Long term repayment, stringe [...]
March 18th, 2008 at 7:34 pm
Pros and Cons of Chapter 13 says:
[...] Pros and Cons of Chapter 13 We here in U.S are on the verge of experiencing a credit epidemic. The quantity of credit card debt has hit an all time high and we are close what may be a recession. Thus leaving many people with fewer dollars in there pockets and more debts that they have to pay on. In this article I will go over the pros and cons of the diverse available methods of credit card debt relief. Credit Counseling Pros- One monthly payment, lower APR, fixed payment structure. Cons- Long term repayment, stringe [...]
March 18th, 2008 at 7:34 pm