Is debt consolidation a good thing to do over bankruptcy?
Is debt consolidation a good thing to do over bankruptcy?
A friend of mine is considering doing debt consolidation and I’ve heard that these types of businesses may be crooked. Can someone give me their honest opinion on if it is a good choice for someone with an extremely bad credit rating.
Best answer:
Answer by bdancer222
Debt consolidation is used for several different things:
1. Big loan to pay off debts — bad idea to shift debt to new loan unless you are disciplined enough to not run the credit cards back up.
2. Settle debt for less than full balance. They hold your payments till all your accounts are 90 days past due. Then offer lowball settlements. Not only will this trash your credit, but many credit card companies won’t play. They just sue.
3. Credit counseling/debt management program. Check here: http://www.nfcc.org/. These are legit, non-profit companies. They can review all you finances and advise how to proceed. They have debt management programs available if you qualify, for a nominal fee. They negotiate lower interest rates, not settlements.
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yes I think that consolidation is 100 times good than a bankruptcy. I have done the same. Why should we go for bankruptcy, its always better to go towards Consolidation. And nowadays there are so many sites available who provides best consolidation services than why one choose bankruptcy. I used consolidation option and I am very much happy now : I file my consolidation here before 7 months : http://www.debtreduction123.net and I m very relax today with their services.