Tips to avoid bankruptcy
When you are in debt too much and you can’t find any other way to get rid of it, you opt for filing bankruptcy. However in any conditions, filing bankruptcy is not the only options you have with you. There are many other alternatives you can use to get rid of debt. Filing bankruptcy should be the last resort you have got. According to many estimates, filing bankruptcy is in the list of top 5 negative life altering changes in your life. Filing bankruptcy is that negative mark on your credit report removing which will take years and ruin your too great extent. It leaves deep wound on your credit report, healing which will take a very long time and too much effort. If you are on the verge of filing bankruptcy then don’t take this big negative, there are ways to come over this situation without even filing bankruptcy. Here are of the alternative options for filing bankruptcy.
Negotiate with your debts
Before you go for filing bankruptcy, you should try and settle down your debts. You can try and negotiate with your creditor. Filing bankruptcy and then cleaning and erasing off it from your record are very difficult. Hence try and negotiate in the best way and convince your creditor to reduce the amount of debt or give you sufficient time to pay it back. You can go for debt consolidation, where you can settle down your debt by losing some of your assets. You can go for a reduced payment plan where in you can settle your debt slowly and gradually without having the need of filing bankruptcy.
When you are filing bankruptcy, all your assets and your property is taken away anyway and you are declared bankrupt. In bankruptcy, a liquidator will be hired who will decide which property to sell and which not and will decide how your claim will be settled. Well now you can also do this by yourself. Instead of filing bankruptcy and declaring to the world and then losing your property, you can sell your property and assets by yourself; pay off your debts but without destructing your credit report for years.
For a moment put up your self-respect on side and consider the consequences of filing bankruptcy. Not good right? It will take lot of effort to put your pride aside and ask for the funds from friends and family. But however this is the right thing to do for the situation. You are not taking away; you just have to borrow funds from them. Return them anyway with interest and you will be fine by borrowing from them. Make a budget and check how much money you will need for avoiding filing bankruptcy. See which friend or relative of yours is in a capacity to pay such an amount. Make sure the person you ask the funds from know the exact position of yours and have enough time to give you for repayment.
Payday Loan scam alert
Are you in need of urgent cash? Well, you’re not the only one. Many people out there find themselves bind with the payday loan scams. Payday loan means the service that offers cash to you right away. I know the illuse of faster money leads the way. But, many phony or scam companies out there operate a separate practice for forging people and targeting them victims for money. Now a days, payday loan scams are commonly observed in the country, and most of the time it is observed through the online transactions. Be careful while you’re considering payday loan as your way. It might result in not only losing the money but could also put you in the theft of identity.
Payday loan scams avoiding tips:
- There are different requirements of different states. The states that allow payday loan access offers a license that businesses can simply apply for which they are certified as the direct payday loan lender.
- Hence, it’s important to pay proper attention on the license when you’re looking into for a payday loan service provider because a licensed service provider is need to comply with the rules stated by the law of that state.
- This simply means that if you’re having a problem, you’re far more protected on your side. There are certain service providers who are voided because borrowing money from them means you’re inviting problems and unprotecting situation towards you.
- It’s advisable of paying proper attention to the terms and conditions before you’re signing the agreement of loan. Hidden fees are one way of predatory lending companies pull the wool over the customer’s trust.
- Check for what fees is liable to you, if you’re getting to charged more than you should know, how much more you’re going to pay on your agreement. It’s advisable of not sending any money in advance before you sign in the contract.
- Have you ever read about someone who sent money from Nigeria because they were informed about their large sum amount of lucky draw they won? These are considered to be the fake mails that should never be replied.
- Payday loan scams are the similar ones that you’re thinking. Often you’ll observe mails on your emails regarding the amount you won in lucky draw, never trust them and send your money. For you your money is important but for them you’re just another person to get forged.
- This is simply bogus, and a dam sure indication that you’re not dealing with a legitimate company when it comes for payday loans. But, the authenticated payday loan service provider will collect each and every penny with associated fees when you payment actually comes due.
- If you’re conversation is on phone, it’s much easier to deal with those payday loan service providers. If you’re contacting the payday loan provider in a physical manner, it’s even better. It will help you in getting confidence of not getting cheated by the payday loan eservice provider.
- It’s even advisable of seeing the ratings of the loan lender you’re dealing with. The rating will help you in taking correct decisions regarding taking loan from the payday loans or not?