Debt Consolidation vs Bankruptcy
Is It Better To Do A Debt Consolidation Or File For Bankruptcy?

Debt Consolidation vs Bankruptcy, If you have reached the point where you simply cannot pay your bills any more, you may be considering either consolidation or declaring bankruptcy. Is it better to do a consolidation or file for bankruptcy?

You are at a crossroads: Your debts have finally reached a point where you feel overwhelmed, over burdened. You are looking for ways to ease your financial difficulties.

Debt Consolidation vs Bankruptcy

Maybe you are looking for diy consolidation or diy bankruptcy. If you watch the slick television commercials, they make it all look so easy, so painless. They make it seem like the answer for everyone.

In truth, both methods of debt relief have their positive points and negative points. Both can go a long way in clearing your financial woes. By the same token, both can do some serious damage to your credit report. So when you look at consolidation vs bankruptcy, think long and hard about each.

Debt Consolidation

Bill consolidation or a debt management program allows you to make just one monthly payment to a debt consolidation service that will take dramatic steps to decrease your debts. When you sign on with one of these services, they make arrangements with your creditors to lower your payments, lower your interest or lower your balance. This will also end the harassing phone calls from collectors and creditors.

In this case, when you stack consolidation vs bankruptcy, consolidation wins. There is only one check to write as opposed to numerous ones to various creditors. Most of the major creditors participate in programs for debt consolidation.

Another attractive element of consolidation is the fact that it is very discrete. If you sign on with them to repair your debts, the information will remain confidential. What’s more, the majority of the debt consolidation companies will do all the paperwork for you.

Bankruptcy Facts

Bankruptcy is a little more difficult and does stick with you for several years. However, in some financial situations it is the only way out. But before you take the plunge, take a hard look at debt consolidation vs bankruptcy. If you really see no way out, then talk to an attorney about declaring bankruptcy.

Bankruptcy brings to a screeching halt all legal proceedings against the person filing the action. That means, if you file, all the legal action that is pending against you in an effort to get you to pay your debts, must cease immediately.

The best way is to get an attorney. They can make sure that all of your paperwork is filled out correctly and that everything is done as it is supposed to be done. However, some people opt for DIY bankruptcy kits.

This can be cost effective, but it can also be quite tragic. If you skip a page in your preparations, it could negate your filing and you are right back at square one. But people look at bankruptcy vs debt consolidation everyday. Some struggle and have a hard time getting out from underneath their debts and opt for one or the other.

The point is that when you compare debt consolidation vs bankruptcy, you have to consider what may be down the road for you. Keep in mind, bankruptcy will stay on your credit report for years. Take special care to evaluate the two options and see which one best fits your needs.