Taking into consideration the current recession that has not yet come to an end, and recent reports that bank earning will not increase by the end of this year, many people have turned to filing bankruptcy. Such filings have increased 34% year-over-year as of July, 2009.

It is important to note that Bankruptcy should definitely be used as a last resort. Therefore, here are some tips and alternatives, those considering bankruptcy, can read prior to filing. (more…)

The fact that credit cards are so easily available to most of us when we need to spend a bit more than we actually have, is one of the reasons why so many people get into credit card debt. Such debts often mount up gradually and before we know it they have suddenly grown so large that it is beyond our ability to pay them off.

This is when people sometimes jump at the first solution they can think of, which in some cases can often make things worse. (more…)

Do it yourself credit repair is not for everyone. There are many companies offering kits that provide guidelines, sample letters and “easy step by step” instructions. The fact of the matter is, unless you already have an understanding of how credit repair works and you have an enormous amount of patience and a high tolerance for frustration, then there is no such thing as “easy steps”. (more…)

Debt settlement companies can cost you more than you owe your creditors. The basic strategy of a Debt Settlement company is to tell the client to stop paying their unsecured bills (like credit cards) and open a special account and fund it with what they normally would pay their creditors. Over time this builds a “war chest” that the Debt Settlement company can use to negotiate a settlement of the debt often promised to be 40 cents on the dollar. Reducing your debt by 60% can be very appealing particularly to people who have no other option but bankruptcy. (more…)