Most people feel so stressed about debt and debt collection issues that they often think bankruptcy is a good option to get immediate relief. While it is true that this could be a possible way out, it is best that you do not take a decision until you checked out what agencies on debt relief in Maine have to offer you.
First of all you need to know that if you feel that debt has totally got you down, you are not alone. Consumer debt is a serious issue in the USA as it is today worldwide and many people are struggling to cope with this issue. This is the reason why there are many reliable and reputed Maine debt relief agencies that are focused on find out way that would enable you to climb out of the abyss of indebtedness.
It is not an easy task as most people who are indebted beyond their ability to pay have reached that condition owing to unfavorable external conditions which were beyond their control such as sudden unemployment owing to recession, sudden illness/ accident, and so on.
Some are indebted simply because they did not know how to spend/ manage their money wisely. Whatever may be reason for the debt dilemma, you need to think twice before considering filing for bankruptcy to escape the stress. You need to check your options with the a reputed agency for debt relief in Maine.
Why Bankruptcy Is NOT A Good Idea?
There are many reasons why bankruptcy is not an advisable option unless this is your very last resort. This option would indeed release you from any financial liability and you will find instant relief from debt collectors. However, this freedom from debt stress comes at a very high cost:
Negative Effect on Credit Worthiness
The bankruptcy will be entered in the credit report of the debtor and will remain there for the next 10 years as per the dictates of Fair Credit Reporting Act. This often affects the approval of credit; and if there is an approval the interest rates would be quite high. Though debt relief in Maine agencies cold help improving the credit score within 3-5 years, this would still be strong negative point when you apply for any loan.
You Still Have To Bear The Cost Of Filing The Bankruptcy
There are a few out-of-pocket costs that you need to pay when file for bankruptcy. The attorney and court fees would be about $300 and there are other costs such as commission to the trustee under Chapter 13 that need to be considered.
Why Is Maine Debt Relief A Better Option?
- Faster Recover – With a little help and negotiation with your debtors, you would be able to be free of debt within 2-4 years.
- Better Credit Score – while it is true that debt consolidation will cause a dent in your credit score, it is easier to build it up with a little care and timely payments.
- Ability To Avail Loans At Reasonable Interest Rates – you would be able to avail loans much faster and on better terms than if you filed for bankruptcy.