Alternatives to Bankruptcy

In our early history an unpaid debt would lead to a public flogging or a stop in the state prison. Today it is unlikely that will happen and not just because we have become a kinder, gentler nation. The banks and credit card companies still want their money and you can always declare personal bankruptcy as a personal and public sign of surrender. But there are alternatives to simply not paying your debts or declaring bankruptcy and if you do a little research you may find one that meets your needs.

You can begin by requesting a little more time from your creditors if you think that your personal financial situation will improve over the next few months. Some people have been successful in negotiating both time and reduced payments with their creditors by taking this approach. Another strategy that might gain some time is to send them a small payment. This will show some intention to repay your outstanding debt and just may get them to be a little less aggressive in their collection approach and activities.

A second way to look at this problem is to accept that you need help and make a call to a professional credit card debt consolidation firm. These agencies will examine your situation from the creditors point of view and make recommendations that will not only improve the situation in the short term but also give you a longer plan for financial stability.

Another possible solution is to seek a debt consolidation loan from an independent lender. Since the banks and traditional lenders may not be that appreciative of your business right now, these companies may be able to help. They will charge you a little more than the bank but it’s not like you have a lot of choices left open to you. If you can arrange a long term debt consolidation loan, that will satisfy your creditors who only want to get paid, but more importantly it gives you a way to avoid bankruptcy.

You can still go bankrupt if you choose but who wants their own personal albatross hanging around their necks for the next seven years or longer. Take the time to consider the alternatives and you may be surprised at what you can achieve if you are just open to listening.