The recent tremor brought by the recession has moved the entire global economy and now the disturbance has caused lot of trouble to common man. They are not able to repay the debt bills and due to this, the credit card companies find themselves lack of funds resulting in imbalance in the market.

Now, the creditors in America are eager to make settlements with their creditors considering the fact that they will recover their entire invested money. The reason why the fight between bankruptcy Vs Debt settlements is largely dominated by the former method is that both the parties are on the gaining side. Here are some other reasons why settlement is overtaking bankruptcy in America:

1. When even any debtor goes for filing bankruptcy, the chances of monetary loss increases for both the parties. The credit card company tries to recover their amount by taking charge of the assets of the creditor, while the creditor gets a big blow in terms of credit ratings.
2. Speaking about credit report, the worst blow one can get from debt relief is by adopting bankruptcy. Here, the ratings are literally flushed and it takes many years for the customer to rebuild his reputation in the banks. This disadvantage is well taken care of in settlement deals. The relief programs make sure that the ratings are not only secured, they are also improved providing further support to the customer.
3. When one goes for filing bankruptcy, he is virtually closing all options of debt relief for himself. According to few stringent rules, one who claims to be bankrupt loses his reputation and is not allowed to file for another bankruptcy for few more years. While, this rule makes a lot of difference, you can easily overcome this problem in case of settlements. As long as you qualify for the programs and need them, nobody can stop you from exercising them.
4. You might be surprised to know that those who have filed bankruptcy were not able to eliminate all their unsecured debts. Some portions of the debts are left behind for the creditor to pay back themselves, which is a matter of great pain. On the other hand, settlement can take care of all your unsecured debt and help you eliminate the entire chunk.

So, the above reasons were sufficient enough to impress the customers and the battle between Bankruptcy Vs Debt settlements was handsomely won by the settlement programs.

If you are struggling with paying back your credit card debt or any other unsecured debts there is legitimate help out there. Debt settlement usually makes financial sense for consumers with over $10k in unsecured debt. There are also other options available. To talk with a debt relief counselor for free help check out the following link:Free Debt Advice
contact us for free debt advice = 8886916918