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How to Avoid Bankruptcy and Increase Your Credit Score

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					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
     y                 g p
 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.
            bankruptcy,
 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.
Be Proactive
         often
All too often, people wait until it’s too
 late to avoid bankruptcy when, if they
             sooner,
 had acted sooner might have avoided
 the entire problem and even created a
 favorable situation to get themselves out
                         g
 of debt. So the first step is to take
 account of your financial situation and
      t     l   f     ti
 create a plan for action.
Whether you are just heading into deep
                                 falls,
 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.
Counseling
                                     return,
If you have not hit the point of no return
 but feel that you are in danger of adding
                                   off,
 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
 i f     ti           dt h l          ff
 credit card debt, reduce your overall
 payments and avoid taking out
 unnecessary loans.
Financial counseling will help teach you
               bankruptcy,
 how to avoid bankruptcy pay off loans
 more quickly, find new means of paying
 for items you want and other helpful
           y                        p
 information to keep you out of debt.
                 g             p y
Credit counseling for bankruptcy is
 another option if your financial situation
 is heading over the cliff. By stopping the
     bl               i ht b    bl t
 problem now, you might be able to avoid  id
 experiencing the disadvantages of being
 bankrupt.
 bankrupt
Debt Settlement
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.
 Settling y
         g your debts in this manner is not
 easy, it will mean cutting off your credit
 cards to help pay off credit card debt
   l      ith       i     l    t      l
 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.
              y
Finally, whether you take steps to pay off
              debt,
 credit card debt seek financial
 counseling for bankruptcy or agree to
 debt settlement, the important lesson is
                   ,       p
 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.

http://www.bscc.ca/

				
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Description: 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 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.