Consolidating debt vs bankruptcy

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Before you make a decision one way or another, it’s important to understand what options are available to you, how they might help you out of debt, and how each solution will work over the long-term.This guide will help you decide while shedding light on the pros and cons of each strategy.

Here are a few benefits: While consolidating debt can seem like a simpler option than going through bankruptcy, that doesn’t mean it’s risk-free.For example, the National Foundation for Credit Counseling requires consumers to schedule a consultation first.If you’re angling for a debt consolidation loan, on the other hand, you may need a FICO score of at least 600 to qualify.When you're looking for solutions to overwhelming debt, you may be wondering about debt consolidation vs chapter 13 bankruptcy as the best path out of debt.Debt consolidation involves taking out a new loan to pay off several older debts. But depending how the new loan is structured, it may actually end up taking more time and money to pay off your debt entirely.

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