Which is an Effective Credit Card Debt Relief Option – Debt Settlement or Bankruptcy?
Two of the major credit card debt relief options widely adopted by people are debt settlement and bankruptcy. This is due to difference in opinion and preferences of consumers. Some believe debt can be completely eliminated by filing for bankruptcy, while others do not want to have a long-term negative impact on their credit report. Let us have a look at each of them and derive the best option.
Debt Settlement
You can settle your debt amount by around 60% negotiating with your creditors. When the payable amount is reduced, you credit score takes a hit and looks miserable for a while. One you, however, start repaying the left-over amount, you 
score improves gradually. This is, therefore, considered to be one of the best credit card debt relief options. This helps people to stabilize their financial condition after a while.
Bankruptcy
Although you don’t have to pay off your debt after you file for bankruptcy, it has some grave impacts on your score. For a period of 7-10 years, your creditor will show bankruptcy status, which wouldn’t help you to get a loan, job, or accommodation. Hence, for the next decade, you lead a miserable life.
It’s clear from the above argument that going for debt settlement is a better option than filing for bankruptcy. Temporary problems are better than life long resentment.
Many people file for Bankruptcy when they are under extreme emotional stress..
Sometimes emotion overpowers reason which is why people take this action without realising the dire consequences of this drastic step..
They shouldn’t be scared to seek advise or financial help from people who are close to them.
Some sharing of stress can do wonders on you finances..