If there is one thing about overwhelming debt that is pretty universal, it’s that it causes stress. Most people seem to have money problems at one time or another, but if you are constantly swimming in debt, scrambling to pay off bills and running from bill collectors you are most likely feeling the pressure. It’s also pretty well known that stress can have serious adverse effects on your health. Serious stress such as the kind brought on by serious money problems can raise your blood pressure, result in weight loss or weight gain, increase your risk for heart attack and stroke or increase the likelihood of abusing alcohol or drugs. Health problems aren’t guaranteed if you are in heavy debt, but in most cases it certainly doesn’t help at all.
Sometimes, the more the debt piles up and the more the phone rings, the closer you get to a health disaster. At that point, a debt settlement solution may be the thing that can restore your financial situation and your health. Debt settlement other than bankruptcy won’t actually eliminate your debts, but it will help to organize everything and get the creditors off your back. When you can set up a system of repayment that’s manageable for you, that feeling of everything closing in on you will melt away and you can see things a little more clearly.
In most cases, filing for bankruptcy is a last ditch kind of solution and may cause as much stress as having the debt. Other debt settlement options like a consumer proposal are more likely, and have a better chance of lowering your stress levels and giving your health a boost. Once you can work out a deal with your creditors to repay all or a portion of your debts, you can shift your focus to making money, making your payments and being healthy.
With some debt settlement alternatives, you will only have to repay a portion of your entire debt load. Creditors typically agree to this type of arrangement, because at that point it’s a matter of getting back something is better than nothing. If you file for bankruptcy, those unsecured loans are wiped out and they receive nothing at all. At least with partial payment, they still get back part of their money.
Of course, debt settlement will only help your health if you stop running up debt in the future. In all likelihood, any kind of debt settlement will have some kind of effect on your credit, and those debts will still be on your record, but that doesn’t mean you can’t get into trouble. As you pay off your debts and your credit is restored, try to remember that helpless, horrible feeling of being deeply in debt that landed you in trouble in the first place. Ask for advice from an expert or take advice if you have to, so debt settlement and especially bankruptcy are two words that you never even have to think about again.
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