Advantages of Bankruptcy Over Debt Consolidation
There are a lot of advertisements that are on the television both for debt consolidation and bankruptcy, so which one is better?
Bankruptcy is something that can either wipe out your debt or it can require you to make payments on your debt over a period of time, depending on what kind of bankruptcy you are filing. But the bad thing about it is that it goes on your credit report and stays there for approximately seven years.
When choosing debt consolidation, people are able to put all their debt into one bill and pay a certain amount each month. This can be done through a debt consolidation agency, which is going to put the person on a budget that they have to stick to and some rules that they have to follow. It can also be done through a debt consolidation loan. You borrow enough money to pay off your debts and then make payments on the loan each month.
Most people have found that debt consolidation is better than bankruptcy. Instead of putting a black mark on a credit report, it sometimes helps the person’s credit if they keep to their payment schedule and pay it faithfully. But if you are going to try debt consolidation, however, make sure that you are choosing a company that has a good reputation. You want to know exactly what they are going to do for you and what the end results are going to be.
All in all, if you choose the right debt consolidation firm or agency, it really will turn out to be a better idea than filing for California bankruptcy and negatively affecting your credit.
Sources: I. Videos Gone Viral, II. The Car Junky, III. The Tech Fanatic
Bankruptcy is something that can either wipe out your debt or it can require you to make payments on your debt over a period of time, depending on what kind of bankruptcy you are filing. But the bad thing about it is that it goes on your credit report and stays there for approximately seven years.
When choosing debt consolidation, people are able to put all their debt into one bill and pay a certain amount each month. This can be done through a debt consolidation agency, which is going to put the person on a budget that they have to stick to and some rules that they have to follow. It can also be done through a debt consolidation loan. You borrow enough money to pay off your debts and then make payments on the loan each month.
Most people have found that debt consolidation is better than bankruptcy. Instead of putting a black mark on a credit report, it sometimes helps the person’s credit if they keep to their payment schedule and pay it faithfully. But if you are going to try debt consolidation, however, make sure that you are choosing a company that has a good reputation. You want to know exactly what they are going to do for you and what the end results are going to be.
All in all, if you choose the right debt consolidation firm or agency, it really will turn out to be a better idea than filing for California bankruptcy and negatively affecting your credit.
Sources: I. Videos Gone Viral, II. The Car Junky, III. The Tech Fanatic
Post a Comment