Wednesday, October 29, 2008

Pay Off Debts And Avoid Bankruptcy

With interest rates on mortgage, credit card, and auto loans rising, we have two choices. Hasten to pay off our debts or walk away, get sued and declare bankruptcy.

I’ve seen commercials on television trying to convince you that bankruptcy is the way to go. They try to give you the benefits of bankruptcy, for example, you just got to wait for a few years for the bad record to be washed out and you can improve your credit over time.

This is true, but it takes a very long time... about 7-10 years.

Loan consolidation is another way, but honestly, there is only one time-tested way which I recommend to get rid of your debt, minimize the interest you owe, and improve your credit score.

Pay off all your debts as soon as possible, especially outstanding balances on credit cards which can snowball very quickly.