It may seem obvious to file for bankruptcy and get all the hassle and misery over and done with but before you do lets analyse a few facts.

However, if not in the first instance, at least some way down the line, they will reduce the amount they are asking for, and very often it will be a very significant reduction of what was once the original debt. If you go ahead and pay, the debt collection agency will get, lets say, around 60% of the final payment you make, leaving just 40% of that for the original creditor/s.

However, when it does get to this stage in the affair, the debt collection agency will actually offer to accept a fair amount less than your actual debt currently stands at. So as an example let us say that the collection agency will receive, if you decide to pay them, a commission of 60% of the reduced debt offer. Following so far?

- Lets imagine you owe $20,000 to your credit card debts.
- The debt collection agency is asking for a full payment of only $10,000 from you to fully settle the debt.
- The collection agency thus gets 60% of this = $6,000.
- The original creditor receives the remaining 40% = $4,000.

So at the end the card company will receive a total of $3,200, which although not nearly as much as you actually owe to them, is a more than they would receive in the case of a Chapter- bankruptcy. In a Chapter 7 though, they would not receive a cent!

But is this any clearer to you now than before? Probably not much. So, ask yourself this:
– how long does bankruptcy stay on your credit file?
Answer: 10 years
– how long does a settlement stay on your file?
Answer: 7 years

Further, if you are to discontinue with the plan at any stage your case will be dismissed and you will be right back at the beginning once again, having paid all those added fees, which you lose anyhow.

Thus it appears that unless your debt has now become entirely unmanageable – and I mean entirely out of control – you should always strongly consider a debt settlement plan before contemplating bankruptcy.

You can learn more about credit card help and about a debt consolidation program to suit your needs.

A business credit card can be a valuable source of financing. It may well be that they are used to finance suppliers on a monthly basis thus providing an interest free grace period for the card holder of typically around 5 to 6 weeks.

Many card companies also offer advanced reporting to the business owner. This way its much easier to keep financial records.

However, even if the business owner were to be really in need of financing, its wise not to use his or her own credit cards. To do so would not only mean that good record keeping and tax records would be difficult to maintain, but worse still – if the business were to find itself with financial problems, then the credit card holder would be liable for any losses. It could even lead to bankruptcy which will mean personal financial problems later on and embarrassment to the business owner and family.

There is still plenty of opportunity for the smaller business owner to attain a business credit card though. It is worth persevering with, even if your own financial records have been a little precarious at times.

When making an application for any business credit card offers, do read the fine print. If you apply for a business credit card offer, just like any other credit card offer and you have not read the fine print first, you could end up with a high fee card or high interest rates to pay. Try to ensure you get the right card for you as this will – in part – pave the way to a healthy, financially strong business.

Click the link for further details of business credit card offers to suit you. Or if you need a debt consolidation program, you can find information about this too.