With so many people losing their jobs or having their income decreased, it is no wonder that debt has become such an issue with a lot of us.
Sadly though, many don't really realize that bankruptcy is not the only method available for dealing with debt, as there have been plenty of other created I order to support the economy from almost certain collapse.
When dealing with debt that is unmanageable and that you cannot even afford to pay monthly minimums on, bankruptcy can be a real temptation since it works very fast.
Most people are unaware of the negative aspect of using this method: it will make it extremely if not downright impossible to take out loan for a long time after you have used it and it will cause a serious dent in your image, one that may even affect your future place of employment.
Because of the fact that it will not get any money to the creditor, a vast use of this method could also mean disaster for the national economy, as creditors may see themselves forced to close their businesses for lack of funds.
Settling on the other hand is a whole other matter: it allows you to pay half of your total debt in such a way that you can actually afford to make the payments.
By eliminating extra cost, you will be left with largely the same amount you borrowed in the first place, but under much better conditions, seen as how you will get a much reduced interest rate.
Also, you will not suffer any negative effects, like not being able to take out loans or credit, since you are actually making an effort to pay your debt.
And your creditor cannot force you later on to pay what you had reduced, since that amount is usually covered by government funds.
All in all, settling is a much better thing to do than bankruptcy, since it not only allows you to eliminate your debt in a reasonable amount of time, but it also keeps you safe from any negative effects that come with bankruptcy.