Here are some alternatives for your kind reference:

Alternative 1: Look for friendly loan

When you are facing financial difficulties and it is hard for you to apply for secured personal loan or debt consolidation loan, looking for friendly loan from family members, relatives, friends or current employer is recommended. You can gather the fund from them and pay them back in future with or without interest. You can save your time and effort to apply loan from financial institutions.

Alternative 2: Negotiate with your creditors to reduce partial of your debt

If there is no friendly loan available, don’t feel upset. You can negotiate with your lenders to reduce your total debt. Contact your creditors or write in to them to request for help. Inform them about your current financial position and prove to them that you can only pay back partial of your total outstanding balance. You are advised to offer them a reasonable settlement amount or propose a lower interest rate to them.

By doing so, you are able to reduce some financial burden and make your debt more “affordable”. If you have no confidence to handle the debt issue on your own, you are advised to look for a reliable debt settlement company to assist you. The professional will be able to deal with your creditors on your behalf.

Alternative 3: Look for government approved credit card debt counseling agency

If your credit card debt is unbearable and the amount is too large for you to handle on your own, you may want to declare bankruptcy. Before you take such action, you are advised to look for government approved credit card debt counseling agency for help. The representative will advise and assist you to set up a plan which suits your situation. You are reminded not to file bankruptcy before consulting anyone.

Alternative 4: Work out your own payback plan with your personal stimulus package

If you don’t wish to affect your credit rating at all, I would strongly suggest you to create your own economic stimulus package to raise cash for your debt. Be a smart tax payer. Make use of your tax refund to pay partial of your debt. At the same time, sell off things that are valuable so that you can eliminate your debt first.

Besides, look for part time job to increase your monthly income. Take the initiative to work out a realistic budget and find as many ways as possible to raise cash to clear off your debt.

When you don’t own any fixed asset, don’t worry and don’t try to avoid yourself from your creditors. Even if you fall behind on payment, you still stand a very high chance to get rid of your credit card debt by choosing one of the alternatives stated above. Just one thing you need to bear in mind. You must evaluate your financial requirements first before making up your mind on the financial option.

Alternative No.1: Look for personal loan

When you can’t settle your outstanding balances through credit card debt elimination, you are required to pay your debt in full. In order to reduce your financial burden, you are suggested to apply for personal loan which charges you lower interest rate. In general, the interest rates for most of the credit cards are high.

If you can obtain personal loan which offers you lower interest rate, go ahead to obtain the loan to pay off your credit card debts first. If you are looking for zero interest loan, you can borrow from friends or family members.

Alternative No. 2: Consolidate all your unsecured debts

If you have multiple credit card debts, you are advised to LUMP all your outstanding balances and apply for one single loan. Get this financial assistance with lower interest rate. Clearing off your credit card debts and paying back one single loan will definitely make your debt more manageable.

Alternative No. 3: Raise additional fund on your own

If you are not qualified to obtain loan due to poor credit, you still stand high chance to raise cash. You are encouraged to look for part time job to increase your monthly income. If it is still not sufficient, you are advised to sell off some of your valuable assets such as car, house or jewelry to raise fund.

Alternative No. 4: “REVISE” your monthly budget carefully

Are you currently working? If yes, I am sure you have your monthly income to support your daily expenses. What you need to do is to cut down all the unnecessary monthly expenses and save more money to make minimum payment to your credit card accounts. If you have extra income, use it to pay off high interest credit card first. Follow the same procedure to clear your credit card debts one by one.

Last Alternative: Consider declaring bankruptcy

Filing bankruptcy is your last resort. Don’t consider this solution if the above mentioned methods can be applied. Before you take further action, you are reminded to find out whether you are a qualified candidate to become a bankruptcy. Not everyone in debt is allowed by the law to do so.

When your debt settlement proposal has been rejected, don’t be upset. It is not the end of the day. There are many other alternatives you can take to overcome your debt problems. The most important is NEVER EVER ignore your debt after your settlement offer has been rejected. Be determined and optimistic. Your future is still bright.

Do you know that you can actually lump all the outstanding balances on your credit statements and make them into one single debt? Let me share with you some practical steps:

Step 1: Analyze your financial ability

The very first thing you must do is to assess your current financial situation. You know your financial position most. I am sure you have multiple credit cards on hand. What you need to do is to compile all your latest credit card statements and list down the outstanding amounts as well as the interest rates one by one. By having all the details, you will be able to analyze your financial ability easier.

At the same time, by knowing all the interest rates, you are able to decide whether debt consolidation can really help you to save a lot of money.

Step 2: Search for suitable loan provider

Once you have got the total debt amount, you are recommended to look for banks, financial institutions or loan providers which offer low interest debt consolidation loan. You need to spend some time to contact them and see what kind of loan packages they can offer.

If you want to save time, you can search online. Shop around to look for the best deal available. The most important is the interest rate offered for debt consolidation loan must be much lower than the interest rates of your credit cards. You need to save as much money as you can from the difference of interest rates.

Step 3: Make the right selection

You are advised to make thorough comparison between different lenders before making your final decision. There are a few matters you need to bear in mind besides interest, such as term of repayment, the monthly repayment amount, penalty for early settlement, other facilities provided, etc. Make sure that you select the right package based on your REAL financial needs. Only obtain the loan amount according to your debt. Don’t apply for extra loan.

Step 4: Pay off your debt with new loan

Obtain the loan and pay off all your credit card debts. You are reminded to ask your new lender to deposit the fund into your saving account. After that, you are the one who is responsible to make the payment to your creditors. You are reminded not to let your lender to deal with your creditors directly. This is to protect your privacy.

An IMPORTANT REMINDER here, do not swipe your credit cards anymore after you have zero balance on your statements. If you still don’t control your spending habits, you will end up with more financial burden in the future. Having loan doesn’t mean that you become debt free instantly. You still need to pay the repayment monthly. Consolidating credit card debts is just to assist you to save some costs.

Last but not the least; if you don’t want to obtain additional loan to erase your current debts, you still have another alternative. Using the consolidation concept, you are advised to consolidate your credit card debts and transfer all the outstanding balances onto one credit card.

By doing so, you are actually transferring the balance of high interest credit cards to a card which offers low interest rate. If you always shop around, you can even find some lenders which offer zero interest rate for the first 12 month.

However, it is not ideal to do so because there are many negative impacts which you may not know. The effects can be seen not only on your credit report, they can seen everywhere in your life. Seriously speaking, I am not exaggerating. I am sharing the truth with you.

Having bankruptcy on your credit report will bring negative impact to your life. This statement will be filed on your credit report for 10 years. This duration is not short and there is no short cut to remove this negative item. Psychologically and emotionally you may feel bad being a bankruptcy.

Besides that, there are many possible consequences which you don’t expect. Let take a look on the effects:

• In many cases, for people who have declared bankruptcy, it is indeed difficult for them to obtain home loan, auto loan or personal loan in the future. The lenders are not willing to consider their applications.
• Even if there are lenders who are specialized in providing financial assistance to bankruptcies in the market, they usually charge very high interest rates to this group of borrowers. It is not worthwhile to obtain loan with high interest because it is an additional financial burden for you in life. Same thing will happen if you start receiving new credit cards or you start paying car insurance premium. The interest charged by the card providers and the premium charged by the insurance providers are higher than the normal borrowers. You may think this is unfair but you have to accept the cruel fact.
• In today’s business world, there are “conservative” companies which normally reject applicants who have filed bankruptcy. You can’t blame anyone if you are denied a job.

After taking a look at the possible consequences, do you think it is still worthwhile for you to declare bankruptcy in order to get your finances back to control? I would say AVOIDING BANKRUPTCY is a MUST when you need to clear all your credit card debts. There are other alternatives which you can apply.

Why don’t you consider settling your debt at a reduced amount or obtaining debt consolidation loan to overcome your debt issue?

There is no difference among these two financial solutions with filing bankruptcy because if you file the bankruptcy under Chapter 13, you still need to pay back your debt through a repayment plan fixed by the court. In addition, your credit score will not be badly damaged if compared with declaring bankruptcy.

To sum up, when you have accumulated a big sum of outstanding balances on your credit card statements, you are reminded not to consider filing bankruptcy as your financial option. It will never be a good choice.