Many people fall onto hard financial times. Millions of Americans are swimming in debt. Are you among them? Do you find it difficult to make “ends meet”? Are you finding it harder and harder to have any money left at all out of your monthly income? Have you lost your job or been displaced from your regular job and now you earn far less than you are accustomed to? No matter what life changes or situations have brought about your change in income, one thing refuses to change. Bill collectors will still call. Collection agencies will still harass you. Interest charges, late fees, and over-the-limit fees will continue to rack up. Whether or not your financial situation improves and you start making more money, your creditors still expect you to pay.
Many people at this stage look at bankruptcy for a quick and easy way out of debt. And while bankruptcy is a fast solution in some instances, it can have long term negative consequences that you should be aware of before going the bankruptcy route. Bankruptcy is not a fix-all solution for all problems that you have with your debts. And not all types of bankruptcy allow you to walk away without owing any of your creditors. Moreover, not all debts qualify for discharge under existing bankruptcy laws. For example, if you are looking to get rid of your student loan debt by filing bankruptcy, then think again. Student loans are not dischargeable under bankruptcy laws other than in a few limited circumstances, such as if you are permanently and totally disabled.
Perhaps more alarmingly though is the fact that bankruptcy ruins your borrowing reputation, and makes it hard for you to qualify for credit again. But the fallout from bankruptcy doesn’t end there. Bankruptcy is a notation on your credit file that any potential employers, landlords, and others look to when deciding whether to hire you for a top position or rent a nice apartment to you. To lenders, creditors, landlords, and would-be employers, filing bankruptcy is a blatant statement that you can’t be trusted, you are irresponsible, and you don’t mind to abandon your promises and walk away, leaving the other guy holding the proverbial “bag”.
For these reasons and more, debt consolidation is likely a good choice for you. In nearly any instance, debt consolidation is a better alternative to bankruptcy. Fill out the form on this page to get a no-risk, no-obligation debt consolidation quote now.