Know The Difference: Scams, Credit Counseling & Bankruptcy

Scams:

Ads that tell you, “You can get out of debt with no payments without filing bankruptcy”are a scam. They promise to get you out of debt, but instead, they just steal your hard-earned money and leave you even deeper in debt.

PresentThe promiseThe result

Interest

Debt

No Debt

Even
more
Debt

 
Credit Counseling Re-Payment Plans:

Credit counseling organizations promise to get you out of debt, but the best they can do is lower your interest a little on credit cards.Even then, they can only lower your interest on some credit cards.

PresentThe promiseThe result

Interest

Debt

No Debt

Less
Interest

Debt

 
Bankruptcy:

Others ads promise, but only bankruptcy delivers.
Only bankruptcy can actually gets rid of debt.

PresentThe promiseThe result

Interest

Debt

No Debt

No Debt

 
Disclaimer: Example concerns non-priority, unsecured debts, like medical bills and credit cards. Result shown assumes a Chapter 7 bankruptcy filing, and no excess equity or excess income.

Want a more in-depth comparison between credit counseling and bankruptcy?  (Click here. 1)

1.   https://www.mybillsbills.com/node/262
2.   https://www.mybillsbills.com/node/227
3.   https://www.mybillsbills.com/node/219
4.   https://www.mybillsbills.com/node/251