If you're thinking about filing bankruptcy, consider how the decision will affect you now and later.
Bankruptcy can't wipe out most student loans, prevent a secured creditor from repossessing property, or eliminate child support, alimony obligations, or tax debts.
More important, bankruptcy stays on your credit report for 10 years, and there is no way to remove it.
Consider these ways to help you get your finances back on track without filing for bankruptcy:
- Talk to creditors. If you think you soon may fall behind on payments, making a good faith effort early on can help you protect your credit.
- Consider refinancing your home. A lower monthly payment could give you a financial cushion and allow you to pay down other debt. A Coosa Pines Federal Credit Union loan officer can help you run the numbers, based on your credit score.
- Spend smart. Eliminate spending leaks and find activities or hobbies that don't require opening your wallet.
- Don't add new debt. Don't sign up for more loans or credit cards, and keep existing balances low. Opt out of prescreened credit card and insurance solicitation lists at optoutprescreen.com or call 888-567-8688.
- Avoid credit repair scams. If you see a promise to "eliminate bad credit" or "erase negative information," don't bite -- it's a scam. Visit fraud.org for more warnings.
Turn to Coosa Pines FCU for assistance. We can help you create a strategy to deal with debt and protect your credit rating. Call or stop in today to get started.
