How to A id Bankruptcy and
H t Avoid B k t d
Increase Your Credit Score
In today’s modern world of credit cards,
mortgages and a myriad of other types
of loans it’s actually easier than ever to
let your credit rating slip and even fall
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into bankruptcy. Having bad credit can
keep you from getting mortgages, auto
loans and even personal loans to help
you out of sticky financial situations.
Filing for bankruptcy while not as
stigmatizing as it once was, can still have
a devastating effect on your credit rating
and ability to take out important loans.
Here are a few tips on avoiding
bankruptcy to help keep your credit
rating more solid.
In fact, there are also ways to increase
your credit score which can help you get
that bank loan or mortgage for the home
of your dreams.
All too often, people wait until it’s too
late to avoid bankruptcy when, if they
had acted sooner might have avoided
the entire problem and even created a
favorable situation to get themselves out
of debt. So the first step is to take
account of your financial situation and
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create a plan for action.
Whether you are just heading into deep
waters or are closing in on the falls
understanding your financial situation is
the first step towards forming a p
p g plan to
solve the problem.
If you have not hit the point of no return
but feel that you are in danger of adding
far more debt than you can pay off then
seeking financial counseling can help you
right the ship and g y
g p get your finances back
on course. Financial counseling will
provide you with the tools and
information you need to help pay off
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credit card debt, reduce your overall
payments and avoid taking out
Financial counseling will help teach you
how to avoid bankruptcy pay off loans
more quickly, find new means of paying
for items you want and other helpful
information to keep you out of debt.
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Credit counseling for bankruptcy is
another option if your financial situation
is heading over the cliff. By stopping the
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problem now, you might be able to avoid id
experiencing the disadvantages of being
If you are facing the prospect of
bankruptcy, it is better to be proactive
and seek debt settlement to avoid the
pitfalls of having to declare bankruptcy.
g your debts in this manner is not
easy, it will mean cutting off your credit
cards to help pay off credit card debt
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along with arranging a long term plan tot
pay off what you owe.
But in the long run, debt settlement can
avoid hits to your credit score so in the
future you can apply for the auto or
home loans you need.
Finally, whether you take steps to pay off
credit card debt seek financial
counseling for bankruptcy or agree to
debt settlement, the important lesson is
to understand the factors that got you
into this situation and avoid them in the
future. Paying out more than you are
taking in is a recipe for disaster.