Bankruptcy vs debt consolidation service - which is better - I just lost my job of 11 years? I was just laid off and thinking of filing bankruptcy on my approx. $ 17,000 of credit debt and bills that barred my home @ approx. $ 75,000 or due to a consolidation service debt on $ 17,000 in my home and see what happens. I'm afraid because there are no jobs in Michigan by nearly what I did before being laid off. Please help!
Watch Out!
You have more options than these, and to be honest they are two of the worst you can do.
Let debt consolidation first. You can obtain a lower interest rate by consolidating your debts, but you must understand that your debt now turns to an unsecured loan to a secured loan. What does this mean? This is important because a secured loan means your personal property is now on line and if you miss future payments, the creditor can simply take your car, your house, or anything else you value. Not a good situation in.
How about the bankruptcy. Well, it really should be an option of last resort absolute absolute. Bankruptcy can stay on your credit report up to 10 years. This means that for the next 10 years, you'll have trouble getting new loans for everything, including cars, credit cards, housing etc.
Well what are your alternatives? Many Americans do not know this, but by law you can dispute your debt and have reduced significantly. Fishing is, you have to do it the right way and need the experience on how to deal with creditors. There are few companies that really know what they are doing when it comes to this, and can reduce more than half of what you normally pay. I recommend you read more about this address:
http://www.zerobill.com/debt/
This is a free site and they give an opinion on the best way to go about reducing your debt in this economy.
Good luck!
Posted on March 16, 2010.
