f you are getting ready to purchase a new home or a car, then a lot is probably riding on your credit report. The higher your credit score is, the greater chance you have of qualifying for what you want and getting a better interest rate. You may have been conditioned in your earlier years to live in fear of losing points on your credit score. This is understandable as you are just beginning to build credit, working hard to make payments on time, and being rewarded with a bevy of better and better offers.
Unexpected Events Make it Difficult to Keep Up
Life often gets in the way though, and at one point you may have lost control of one or more credit cards, as well as other major bills like the car payment, rent, or mortgage. Obviously, that puts a dent in the credit report. Financial challenges can feel nearly as stressful as the issues that caused them. For most, staggering hospital or doctor’s bills, or unemployment, divorce, or burdensome student loans pushed them over the edge. They may have suffered one of those challenges—or not so uncommonly either—all of them. At that point, paying credit card bills often takes a back seat to everything else in life and the credit score may suddenly seem much less important.
You may be wondering which is the lesser of evils, and which will be more detrimental to your credit report: Foreclosure, default, or bankruptcy? Chances are, if you’ve already been having trouble paying bills, your credit score has diminished substantially. The horror stories you’ve heard about the ruinous consequences to your credit regarding foreclosure or bankruptcy may not be quite as true, but a bankruptcy will remain on your credit for seven years for a Chapter 13 bankruptcy and ten years for a Chapter 7.
Explore Your Options
If you aren’t planning on making any large purchases, and you are adept (and can become so) at using cash instead of credit, you may find that the world doesn’t stop turning—or even change much—if you are forced to make a tough decision that affects your credit in the long run.
There are numerous options to explore though, and your first stop should be a consultation with an experienced debt settlement law firm like Fitzgerald & Campbell, APLC. After reviewing your case, we can discuss your best options with you, whether that is debt consolidation, settlement, or bankruptcy.
Contact Us for Help Now
If you are finding it difficult to pay your bills and need an experienced debtor rights attorney, contact us at Fitzgerald & Campbell, APLC. We can review your current situation and discuss your options with you, whether that means a negotiated settlement, bankruptcy, or more.
Our attorneys have decades of experience representing clients in all types of consumer rights matters, and we are here to help you! Call us today for a free consultation at (844) 431-3851, or email us at info@debtorprotectors.com.