Consolidating debt pros and cons
This can stay on your credit report for seven years.A surprise lawsuit is served on you by the Sheriff’s office when you discover one or more creditors have not been paid as part of the debt consolidation. Once you make the decision to do something about it, you usually contemplate debt consolidation or bankruptcy. Below we have explored some of the benefits and drawbacks of each.Debt consolidation can take many forms, but for this blog we will look specifically at companies that take some or all of your debts and negotiate a settlement with your creditors.” American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling agency that works to help individuals and families find a personalized path out of debt.
In some situations, Chapter 7 bankruptcy is the correct approach and it will completely eliminate debts on credit cards, medical bills, personal loans, foreclosures, repossessions, etc. The Trustee is appointed by the federal government and payment made by the Trustee are scrutinized and audited.
Depending on your income and your personal situation, you may want or need to file a Chapter 13 bankruptcy which consolidates your debts.
Similar to debt consolidation, you pay a percentage of your unsecured debts (credit cards, medical bills, personal loans, foreclosures, repossessions, etc.) back over a period of time.
We recommend you contact the Better Business Bureau or your local United Way to see who they recommend.
Bankruptcy is the legal approach to consolidating or eliminating your debts.
By paying off a variety of cards with a new loan or a card at a lower interest rate, you can theoretically save some money and reduce your stress over finances.