Bankruptcy Vs Debt Consolidation - Know the Implications

One of those words that you never want to hear when talking about your financial future is bankruptcy

. Even people who are not well versed on how the financial world works know that bankruptcy is a terrible option and it is basically a killer for your financial future. With that said, some people still choose this method when the debt gets to be too much to handle. The issue at hand is that these people did not have to use bankruptcy. If they were smart about things, they could have used some other option, like debt consolidation. So what are the implications of each of these things? Get a Free Debt Consolidation Quote - Click Here! When it comes to bankruptcy, the implications are quite severe. The bankruptcy will go on your credit report and it will stay there for a period of seven years. During that seven year period, you will have a very hard time getting any sort of credit, even at the smallest of levels. You can forget about getting a mortgage and most business loans are going to be out of your range, as well. Things become slightly easier the further into the seven year period you go, but most financial experts will tell you that bankruptcy is financial suicide in reality. Another thing to keep in mind is that declaring bankruptcy can cause you to be a liability for some employers, so your ability to find a solid job might take a hit. Bankruptcy does provide some relief in terms of how you are allowed to deal with creditors. You will have some leeway and a little bit of room to bargain with them. In some cases, you will get out of paying certain debts. It is not worth the cost that you will incur with your credit score, though. Consolidation is different, because it does not have all those negatives. Your credit score will take an initial hit, but as time goes along, consolidation actually improves your credit. It gets you back on the right track and gives you a chance to pay off the debts the honorable way. You won't go through that seven year dark period where all financing is completely out of the question. Though consolidation is a more difficult road to choose because it requires you to be disciplined financially, it pays off in the long run because you don't have to deal with the negative consequences associated with things like bankruptcy. Click Here to request a Free Quote Online and see exactly which Free Debt Consolidation Programs will benefit you.

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Bankruptcy Vs Debt Consolidation - Know the Implications

By: Richard S. Johnson

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