Uncontrollable credit card debt has led many American citizens to look for a way out that really works. While some individuals resort to debt settlement programs, others favor the complete judicial protection that is offered by Chapter 13 Bankruptcy. Chapter 13 Bankruptcy assists US consumers to lower their monthly payments on credit card debt. You can become debt free simply within 3-5 years with complete judicial protection. Individuals who have non-exempt assets like rental properties frequently opt for reconstituting their credit liabilities throughout a 3 to 5 year period for the purpose of lowering the monthly payments. At the same time when there would be a negative impact on their FICO scores for up to seven years, those who are facing severe financial difficulties can become debt free. The Distinction Between Chapter 7 and Chapter 13 Bankruptcy The main distinction between Chapter 7 and Chapter 13 bankruptcy is that the second permits a consumer to hold non-exempt assets.
Credit Solutions are effective ways to get out of debt or a bad credit situation that can jeopardize your credit score and your credit worthiness in the eyes of your creditors. Credit solutions…. tackle 3 credit problems you often face, these are: Too many credit cards: When you have multiple credit cards, you try to transfer balances from one card to another instead of decreasing an individual account. This way, each of your cards has a high balance that does not decrease creating a problem. Late or missed payments for loans or credit cards: Continual late payments hurt your borrowing capacity and your lenders lower your credit worthiness from the pattern of your late payments. Too much ….outstanding debt: If you have a disproportional high debts compared to your income, you can risk getting into a tricky credit situation. This might also frighten future lenders from offering you loans. How credit solutions work in a bad credit situation You can find 6 different credit solu