The simple answer is no. There are other viable options to get rid of credit card debt than declaring credit card bankruptcy.
However, the sad part is that many Americans have opted for credit card bankruptcy as an easy way out without realizing the full consequences of declaring bankruptcy. Declaring credit card bankruptcy not only denies you the good things in life but also makes routine living difficult. Moreover, bankruptcy laws have changed over time and declaring is no longer as easy as it used to be.
Here is a brief discussion regarding what to do in case you find it difficult to manage your debt.
Credit Counseling
This should be your first step. Actually, credit counseling is something that everyone needs to remain debt-free all through life. You can look for a credit counseling services on the Internet as well. Credit counseling is all about living within your means. All that you require to do is to spend just a little bit less than your present income. Before you hand over your credit card for swiping make sure that you will be having enough funds to pay by the time you have to pay the bill. Credit counseling is also about resisting the temptation of using your credit card recklessly.
Debt Consolidation
There are times when you end up owing money to multiple lenders. This happens in emergencies when you apply for unsecured personal loans for emergencies or you may have run up a big debt simply because you have multiple credit cards and were not careful. You can seek help from debt consolidation services for negotiating a settlement with your creditors and combine them into one single loan. One single monthly payment is obviously easier to manage than multiple payments. During the process of debt consolidation, a professional tries to find solutions that are acceptable to the lender and also convenient and favorable to you. The idea is to transfer high interest loans into one low interest loan.
Debt Settlement
Debt settlement is different from debt consolidation and an option that you may want to exercise if the event your debt has accumulated to totally unmanageable levels. Try to locate a good debt settlement company, (you can find one online as well) that has relationships with your lenders. A debt settlement professional knows the weak points of lenders that they would rather negotiate a settlement than take the hard route of debt recovery through other means. Debt settlement, if handled properly can reduce your total debt by as much as 50%.
Now that you know that there are alternatives to declaring bankruptcy you should also know what credit card bankruptcy involves. Although bankruptcy may be a good solution severe and unmanageable debt it has lasting negative implications and can greatly restrict your ability to avail credit in future. Bankruptcy not only adversely affects credit scores but you also stand to lose non-exempt or unprotected property. In short, c involves starting life all over again. Only, this time it may be extremely difficult because bankruptcy reflects on your credit scores for seven to ten years.