Debt Reduction Is A State Of Mind

There is no question that we’re hurting. Whether you are lower class, middle class, or somewhere in between, you’ve likely seen some rough times over the past few years. What has taken place both in our economy and abroad have left millions of people in shock, not really knowing where to go to find debt reduction. The usual suspects like bankruptcy are still out there, still being overused by the masses due to the misconceptions and misinformation that surround them. This leads us to thinking, what are the biggest downsides to using bankruptcy prematurely or when you have another way out? Let’s take a closer look to find out.

The Usual Suspects

1. The Quo (In “quid pro quo”) – One of the most common misconceptions about bankruptcy is that it absolutely rids of you of your debts immediately and without exception. Though it would be much better if it did, the truth is that you can leave the bankruptcy table with many of the same debts you approached it looking to get rid of. Yes, you’re understanding us correctly. Even if you decide to resort to bankruptcy to discharge your debts and you agree to take on all the baggage that comes with it, you still risk being stuck with debts.

2. The Quid (In “quid pro quo”) – Maybe one of the saddest aspects of people turning to bankruptcy for debt reduction is that many don’t know that they aren’t getting something for nothing. That is, in order to reap the benefits of having some or all of your debts expunged, the debtor is often forced to liquidate their assets in order to satisfy the lenders. What you value makes no difference to the courts of your creditors. It can be taken away from you in a moments notice to appease the system.

3. The Time – If you haven’t been exposed to this reality by this point, it is quite clear that your credit is extremely important. Though it is represented by an arbitrary number, it has a quantifiable effect on your life. If you were to go with bankruptcy as your form of debt reduction, you’d be potentially looking at an entire decade of having worthless credit.

The Alternative

There’s no doubt that bankruptcy is a very scary choice that brings with it its own set of baggage. However, you don’t have to rely on that as being your only way out of your whole. Other forms of debt reduction exist, such as debt settlement and credit counseling. If you’re interested in finding out more from one of our certified debt arbitrators at no cost to you, give us a call today.