If you're relying on a fixed income, you may encounter multiple difficulties in repaying your credit card debts. In light of such challenges, credit card settlement would generally be a smarter move that going bankrupt. Obviously, it's your decision at the end of the day whether you file for bankruptcy or feel rationally empowered to march head-on negotiating with your creditors. But, the decision to negotiate is often more logical than bankruptcy, even if it temporarily hurts you credit. At least through credit card settlement, in the end you can restore your credit in a jiffy compared to the 10-year wait associated with a bankruptcy.

Choosing to settle your debt can be a fruitful experience. But, credit card companies ultimately get to decide how they will manage risk and some are more rigid in their settlement guidelines than others. The good thing is that if you pose a real financial hardship, most credit card issuers are willing to forgive a certain amount of the credit they issued you. But, there are various factors to consider. Are you being responsive to their communication? Do you have a history of punctually paying bills? Are you presently employed? Etc. Considering such factors, they will make an objective decision on how much that they'd want to recover. You also get to shoot the dice during in negotiation process and the wrong move could be a pricey gamble. Once a settlement offer is made, you need to respond quickly or if they fail to recover the agreed upon sum, you may be owing the full debt.

Remember, credit card companies are businesses; just like any other business, they are in the business of making a profit. Getting paid -the sooner the better - is their chief concern. So, don't hesitate to immediately remit payment once you receive a good settlement offer. The good opportunities aren't left on the table for too long and if you delay, the tradeoff could having to pay the full amount or worse, they can slap you with a lawsuit. However, bankruptcy is hardly desirable to any of the two parties concerned. Usually, nobody wins. You damage your credit for 10 years and you risk forfeiture of cherished property and valuable assets. And. The credit card company risks not getting paid. But, if you can show a valid reason for not being able to repay your total debt, you can convince the creditor that you are a suitable candidate for credit card settlement.

Conversely, no credit card company wants to wait and eternity to collect money and if you offer peanuts, you may get stomped by the elephant. The bottom line is that if you don't have the funds readily available to pay a settlement offer in the vicinity of 40-60% of the balance, chances are you won't get a settlement. But, on the other hand, if they push you too far, bankruptcy can prevail.