One of the worst things you can do is to file for bankruptcy. If you do, you will be in a difficult situation. You must avoid bankruptcy and other similar events as much as possible.
The best way to avoid bankruptcy is to fix your current financial situation first.
Find out your debt situation. You may have some, or most of it may not be owed to you. The IRS may have some, too.
Once you know your personal situation, then you can decide what you will do next. If you still owe money on some accounts, that is something you need to try to eliminate.
Debt settlement is one option. It is a process where the creditor agrees to eliminate the debt by a percentage of its value, usually a few percent.
Bankruptcy is another option, but it only works for credit repair. Once you file for bankruptcy, this becomes impossible.
You are actually looking for a way to get help with the problem. If you find that you cannot afford to pay off your credit cards, get some form of debt consolidation.
This will help you avoid bankruptcy and get yourself out of debt.
To qualify for a debt consolidation loan, you may have to have a minimum amount of credit card debt. This is part of the credit counseling process you will go through after filing for bankruptcy.
While you are being counseled, you are going to get advice on how to manage the debt and what you can do to improve your credit. This is a great start in rebuilding your credit.
It can take time and effort. It is a long process. You will need to keep working at getting back on track financially and rebuilding your credit.
Now, when you decide to work toward getting help, make sure that you use credit cards only for items that you really need. Do not let your debt become overwhelming. It will make it more difficult to stay on top of things.
- Remember to make sure that you pay the balance in full every month, just like you would with a bill.
- That will help you avoid bankruptcy and save you from suffering further credit problems.
- Be careful not to let your debt build up so much that you cannot pay it off in time.