Filing bankruptcy is not a better solution to credit card debts. There are many other best bankruptcy alternatives that can help people in regaining the financial freedom without hurting the credit scores. Debt settlement and credit counseling are the two best bankruptcy alternatives.

Although people get relief through filing bankruptcy in a short time but it’s bad after effects are of long term. For many years, a person feels himself as financially paralyzed. For this reason, legitimate bankruptcy alternatives like credit counseling and debt settlement can save people from worst financial crisis.

If some one has only two cards then there is no need for the consolidation. It is only advisable if some body has a debt of more than two cards.

Consolidation is not a permanent relief, it is temporary. No doubt the credit card companies have been paid, from there you have a relief, but you have brought yourself a new loan which is still to be paid.

Debt settlement provides elimination in the debts up to 50% or even more. For getting a successful deal, a person has to hire a professional well-seasoned attorney. These people charge their fees for providing settlement services but it will increase your chances of getting more elimination.

Training and education about credit management is provided in credit counseling. This option does not provide any reduction in debts as settlement does. A person who wants to save his credit history and wants to pay his debts without any elimination and reduction should try this best bankruptcy alternative. In this program, different workshops and lectures are offered to people.

Mostly these counseling programs are run by the government and non-government agencies. Military agencies are also providing counseling services. As millions of people are buried under the stacks of debt, many organizations offer counseling free of cost.

This is because if all these people will go for filing bankruptcy then credit card business will ruined in a few years. There were millions of bankruptcy filings that were filed in the year 2010. This number is increasing day by day.

Harris Smith is a personal finance writer interested in home equity line of credit Don’t Miss Out!