Is Debt Consolidation Different From Filing Bankruptcy?


Some things seem like a great idea at first, but when you start to see the long term effects you begin to understand the hazards behind bad financial decisions.

Bankruptcy is the final straw for a consumer that has gotten themselves so deep into debt that they do not feel their income can adequately pay their bills anymore. With bankruptcy a person seeks the protection of the courts, and they allow the courts to decide which creditors will get paid and which ones will not. The creditors that will get paid rarely get awarded their full amount, and the creditors that do not get paid are stuck writing off your debt. Bankruptcy can have a severe negative effect on your credit for many years, and it can affect your ability to get any kind of financing for anything for a decade or longer. Bankruptcy initially makes people feel better, but the long term effects can be frustrating and devastating.

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If your financial situation is being choked to death by high interest rate credit card loans, then you will want to consider debt consolidation before you think about bankruptcy. With debt assistance, you can take all of that high interest credit debt and replace it with one low interest rate loan. Your many high service charges will be replaced with a single low service charge, and you will wind up paying hundreds of dollars a month less to for your obligations.

Prior to talking to an attorney about bankruptcy, take the time to discuss your situation with a debt consolidation company. A debt expert will go over your situation with you and lay out all of your options. You may find that the debt that was pushing you to the drastic decision of bankruptcy can easily be controlled by a debt assistance program.

Beyond any doubt, debt consolidation is the better alternative to bankruptcy and as you can see is far different from filing bankruptcy.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.


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