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Bankruptcy
Disguised
Debt got you down? You're not alone. Consumer
debt is at an all-time high. What's more, record
numbers of consumers-nearly 1.5 million in 2001-are
filing for bankruptcy. Whether your debt dilemma
is the result of an illness, unemployment, or
simply overspending, it can seem overwhelming.
In your effort to get solvent, be on the alert
for advertisements that offer seemingly quick
fixes.
While the ads pitch the promise of debt relief,
they rarely say relief may be spelled b-a-n-k-r-u-p-t-c-y.
And although bankruptcy is one option to deal
with financial problems, it's generally considered
the option of last resort. The reason: its long-term
negative impact on your creditworthiness. A bankruptcy
stays on your credit report for 10 years, and
can hinder your ability to get credit, a job,
insurance, or even a place to live.
The Federal Trade Commission (FTC) cautions consumers
to read between the lines when faced with ads
in newspapers, magazines or even telephone directories
that say:
"Consolidate your bills into one monthly
payment without borrowing."
"STOP credit harassment, foreclosures, repossessions,
tax levies and garnishments,"
"Keep Your Property."
"Wipe out your debts! Consolidate your bills!
How? By using the protection and assistance provided
by federal law. For once, let the law work for
you!"
You'll find out later that such phrases often
involve bankruptcy proceedings, which can hurt
your credit and cost you attorneys' fees.
If you're having trouble paying your bills, contact
a credit counseling service. These organizations
work with you and your creditors to develop debt
repayment plans. Such plans require you to deposit
money each month with the counseling service.
The service then pays your creditors. Some nonprofit
organizations charge little or nothing for their
services.
Produced in cooperation with the American Financial
Services Association
Please fill out the Christian debt information request form on the right to request more information about our Christian debt programs.
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