Bible mentions seven unforgivable sins. It was written in ancient times otherwise there would have been eight sins in it. The eight is the latest one of having many unsettled debts.
Bad debts are one of the biggest menaces in every business, dealing a heavy blow to the company finances. It reduces the assets considerably, and consequently also reduces the income of people you owe money to.
In the event you realize that prospects of insolvency are looming large over you. Hence it is better to settle your debt as much as possible with the creditors. Otherwise it is very difficult to re start your financial career, since unsettled debts reduces your credibility and respect in the market.
Implications of Bad Debts:
The creditors usually do not like a person declaring bankruptcy, since it means heavy losses for them in form of unsettled bad debts. Thus they fight hard to avoid bankruptcy declaration. Not to forget that attorney fees you will pay to declare insolvency causes a bombshell. It’s no longer economical to be poor.
Debt Settlement Program:
In such a situation, you can opt for Debt settlement program, which means hiring an external company or agency to handle your debts, negotiate with creditors and settle as much debt as possible, doing minimum damage to your already battered financial state.
A debt settlement program effectively eases out your bad debts for a fee in return. Here is where the catch lies. While it makes settlement of debts considerably easier, the fees charged can sometimes be astronomical. Therefore while they start saving for you, you are actually paying a lot in return. It can prove to be a disaster if you actually save a lot on your credit while coughing up large amount for its settlement.
Thus choose a right agency to settle your bad debts, and make a wise decision between settlement of your debts and declaring insolvency
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