Consolidating debt good thing
With bankruptcy, you officially declare that you cannot pay your debts.To pursue bankruptcy, you must qualify and complete the entire process, including pre-filing and post-filing counseling.These debt relief programs don’t have a negative impact on your credit but may limit your credit options for their durations.Bankruptcy: This should be a last resort as it negatively affects your credit for many years.Many of these options work hand in hand with or as part of a larger debt reduction program, but in general, these are your choices: Debt Settlement: Settlement is the process of negotiating with your creditors in hopes of reducing the total amount of debt you owe them.While you can undertake this process on your own, many people choose to hire a professional debt settlement company or lawyer to negotiate on their behalf.
It offers top-notch customer service and its costs and fees are well in line with industry standards.
When you begin this process, you set aside funds each month into a separate, insured account.
While you're building up your funds, the company or lawyer you've selected negotiates with your creditors to try to reduce the total amount of debt you owe.
While having one low rate and one payment is an attractive option, many people end up in similar or worse financial situations when attempting credit card debt consolidation.
According to Cambridge Credit Corp., a nonprofit credit-counseling agency, 70 percent of Americans who take out consolidation loans end up with the same or more debt after two years.