Philadelphia, PA (PRWEB) June 15, 2013
Top Consumer Reviews’ leading debt relief company proved once more why they are at the top of the industry. Despite offering debt settlement as the main debt solution, their library of articles provide an extensive collection that discusses everything that a consumer would need to know to achieve debt freedom.
On May 29, the company published an article entitled, “Bankruptcy Options And Pitfalls.” The article sought to provide readers with adequate information about this debt solution to know if it is the right path for them to get out of debt.
The article implies how bankruptcy is usually the foremost thought when it comes to getting out of debt. While that is true, National Debt Relief knows that a lot of people do not know what is at stake. This is what led them to publish this article. Beginning with the options, the article discussed the two types of bankruptcy: Chapter 7 and Chapter 13.
The former is also referred to as liquidation bankruptcy wherein the courts will order personal assets to be liquidated and the funds distributed to various creditors of the consumer. Most of the time, consumers prefer this type of bankruptcy because they end up not paying anything towards their creditors - especially if they do not have valuable assets to liquidate. Unsecured debts are usually discharged first.
On the other hand, the article describes Chapter 13 as a reorganization bankruptcy wherein a repayment plan takes effect. The consumer still has to pay off their debts - or at least a portion of it. Once approved by the court, the consumer has to finish this plan throughout the 3-5 years period that it normally takes.
While these are both effective, the article warns against the pitfalls. Chapter 7 can only discharge selected debt types. Not only that, the credit score of the consumer will go down 200 points and they need to wait at least 2 years before they can get financial aid for a house or a start up business. The bad taint of bankruptcy that will prompt lenders to give them a high interest will stay on their records for the next 10 years. For Chapter 13, the article states that while this type of bankruptcy will not have as much negative effect on the consumer’s credit score, the repayment plan is the biggest downer.
National Debt Relief followed this article with a subtle suggestion on how consumers can avoid bankruptcy. The whole point of filing for this is because the consumer does not have the money to afford paying off their debts. That means, of consumers can grow their debt payment fund, it may not have to end with bankruptcy.
One way to immediately grow one’s debt payments is to cut back on monthly expenses. On May 30, National Debt Relief published an article “5 Ways To Cut Your Monthly Bills.” This article discussed the different ways that consumers can lower their monthly costs to they can put in more money into their debts. While it concentrates on paying back student loans, the article discusses general tips on debt relief like the following:
1. Check out debt relief options that allows lower monthly debt payments.
2. Seek out companies that have promo offers that bundle services (e.g. cable and Internet, etc).
3. Plan weekly meals, create a shopping list around it and avoid shopping impulses.
These are only a few of the tips that you can learn from the article.
To read both online publications, visit National Debt Relief.