PostHeaderIcon what is better bankrupcy or debt consolidation?

I have very high unsecured debt. I can’t keep up the minimun payments. would debt consolidation be the way to go, or should I declare bankrupcy.Which would hurt me more in the long run?

5 Responses to “what is better bankrupcy or debt consolidation?”

  • i_ischeekymonkeyme says:

    if u dont own a house or anything bankruptcy is better

  • Moe says:

    Bankrupcy should be your last resort. Do not declare bankrupcy if you can help it.

    If you consolidate your loans they will charge you a fee to do so. I would not consolidate if I could help it. You do not want to incure more debt. Follow the following steps.

    First prioritize your bills

    1)Shelter, food, utilities, transportation are your first priority pay these bills first.
    2)Eliminate non essentials –cell phones, cable TV, internet ect.
    3)Negotiate with creditors
    4)Sell stuff to get cash
    5)List bills with total payoffs from least amount to greatest amount and pay the minimum on everything except the first bill where you apply as much as possible until its paid off then move to the next bill.

    Reseach the snowball payoff schedule online

  • bdancer222 says:

    Check this site for a Consumer Credit Counseling Service in your area: These are legit non-profit companies who can review your finances and advise you how to proceed. They have debt management programs available, if you qualify.

    A debt management program will adversely affect your credit initially, almost the same as bankruptcy. However, when you complete the program, you will have a good payment history and won’t suffer the stigma of bankruptcy showing on your credit file for 10 years.

    Debt consolidation isn’t a good idea. Shifting your credit card debt to another loan only allows you to run those credit cards back up and you end up in a worse position.

  • Cherry Joe says:

    I have articles on Free Your Debts, Ways to avoid bankruptcy. Get advice from Debt consolidation or Debt settlement. Will it affect my Credit Score / FICO Score? More Information on

  • Jennifer says:

    I used “Credit Solution” to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:

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