Is It True Debt Consolidation Will As Bad Of An Effect On My Credit Score As A Bankruptcy Would?

Author: Hector Milla

Author: Hector Milla

When you borrow money on a credit card, there will be a reasonable expectation that you will make the necessary payments that are required of you. However, life can sometimes come with its many road bumps. Those that have suffered from situations of financial stress may find themselves falling behind on their payments. Hector Milla Editor of the "Best Debt Consolidation Companies" website -- http://www.BestDebtConsolidationCompanies.net -- pointed out; For those that are totally unable to make their payments at all, they will look towards other means of settling their debt. There are generally two options available: debt consolidation settlements and bankruptcy. While many realize that a bankruptcy filing can totally destroy a credit rating, some may be under the assumption that a debt consolidation loan will have the same effect. Actually, this may not be the case When you file for bankruptcy, you have entered into a very complex series of legal proceedings designed to offer protection from your debts. While bankruptcy will yield a great deal of helpful protection, it will also hang a dark cloud over your head that will last many years. With a debt consolidation plan, you will negotiate your debts down to a portion of their monetary amount. Credit card lenders are agreeable to such a process because they will receive a payment up front as opposed to seeing you go into bankruptcy. Obviously, if you go into bankruptcy they may not receive any of the money owed to them. Now, this will definitely impact your credit score in a less than positive manner. After all, you have essentially stated your inability to pay your debt obligations. However, the cloud that will hang over your head in this situation will be nowhere near as bad as a bankruptcy filing. This is because it will be much easier to repair your credit after a debt settlement. In fact, simply paying your bills more frequently and on time will slowly improve your credit score. As such, the problems associated with the debt settlement can be overcome. This would not be the case with a bankruptcy filing due to the expansiveness of such a filing. So, it is safe to say the impact of a debt consolidation/settlement offer will not be as damaging as filing bankruptcy added H. Milla. Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationCompanies.netAbout the Author:

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

POST COMMENT

Is It True If You Do A Debt Consolidation It Can Show Up As A Bankruptcy On Your Credit Report? Is It True Debt Consolidation Will As Bad Of An Effect On My Credit Score As A Bankruptcy Would? Is It Recommended To Use Debt Consolidation For Credit Card Debt? Are You Going Through Issues Concerning Debt Relief? Consolidate Credit Card Debt: A Practical Guide to Getting Started Help With Bad Credit - Maintaining A Good Banking History Are You Seeking Debt Relief Solutions? How To Seek And Secure Credit Cards For People With Bad Credit How To Get Credit Card After Bankruptcy Help Credit Cards For People With Bad Credit Free Annual Credit Report Gives The Borrower Information How To Get Free Credit Rating Report Online Icici Bank Sells Terminals Of Card Payment