NO!! Stop! Don't do it. . . .you'll regret it! After filing for bankruptcy, you will be wailing like the witch from Wizard of Oz, "No. . .I'm melting. . .aaaaa!"
Although bankruptcy gives you a reprieve from your current bills, it will be on your credit report for 10 years. Now, ask yourself this, would you rather have a ding--or rather a huge dent--dogging you for ten years or a small ding for two to three years by using Debt Consolidation or Debt Settlement programs? Hold that thought while we take a trip into understanding a bankruptcy vs. debt consolidating and debt settlement programs and their affect on your score.
Bankruptcy And Your Credit Score:
In the latest report by the National Bankruptcy Research Center, there has been a slight decrease in bankruptcy filings as people are slowly pulling themselves out of the economy dump. It also states that this year's first eight months have seen a 10% drop. That is a start, but the national average shows that one out of 285 people are still filing to get the debt out from under them. FICO has recently made available examples as to how many points a bankruptcy can actually have on your credit rating:
- Ironically, those that have a very high score can have a significant drop, indicating not even a dent, but a train wreck--could be 240 points or more
- Those who are already having problems with their debt may have just a dent--could be as low as 130 points
Even after filing, lenders require at least two years before applying for credit again. They do this to give the person the time to begin rebuilding their credit. Don't be a statistic. Bankruptcy will only tell future lenders that you failed in meeting previous creditors' requirements. There are better options.
Debt Consolidation and Settlement Programs And Your Credit Score:
- Debt Consolidation is a combining all of your debt into one lower monthly payment. You will generally get a smaller monthly payment, lower interest rate, and few if any fees.
- Debt Settlement Programs work with your creditors to settle the balance for less than owed. (Most of the time less than HALF of what you owe!)
Your score is affected, yes. However, the score is far less affected than if you were to file bankruptcy, or do nothing. Ten years is a long time to be haunted by bad credit. In the two years it takes to apply for credit after filing bankruptcy, you can have your credit score back on track with Debt Consolidation and Debt Settlement programs.
For more information on your options, click on the link below or call 1-877-492-4109
photo by: photosteve101