We are moving in a fast pace economy where plastic money has considerable importance. Spending via credit card has been such in vogue that the sudden downfall of economy has lead people nowhere and has caused such pressures that have led them to no option rather than credit card bankruptcy.

People with huge credit card bills have been in such a trauma as there are more expenses and the income is considerably low. In such case, going for bankruptcy is the best option but it has many effects some adverse affects that can be harmful for them. Looking into bankruptcy filing, one has to go through number of procedures. This includes from lawyer fees to filing charges and other costs to be paid hence, filing for credit card bankruptcy is really costly.

Moreover, it affects your credit score and a bankrupt person cannot get a loan for the next 8-10 years, leaving low financial positioning along with damaging the future. Now if we look at the creditor’s side then we will come to know that the creditor is also not satisfied with the result of bankruptcy as the person with insolvency is protected by the government and a creditor gets ineligible to ask for his money from the debtor. Thus a creditor won’t be having a single penny back which will lead towards huge loss.

Credit card bankruptcy is not the right option as we have other options that can provide us relief from huge debts and they will also not rupture our financial credit score. These options include debt settlement. 50% of the total amount is eliminated while the other half is converted in easy installments via the settlement program.

This is a very reasonable way to execute your debt payments slowly and steadily. Moreover, hiring a debt settlement firm is also more authentic now as laws are made for their legacy and no upfront charges make it possible to have a transparent mode of negotiation by the debt settlement firm, leading towards proper proceeding and finally resolving the issues effectively writer.

Hence if you have an unsecured debt worth $10k it is better to go for debt settlement rather than going for credit card bankruptcy as it is not a right choice to go for when you have other options to avail. If these options fail to bring the desired results then one can go for the procedure of bankruptcy but at that time one has to keep in mind the after affects of bankruptcy.