The Debt Consolidation Facts

Are you facing the possibility of bankruptcy?  Take time to explore all of your alternatives before you go through with a bankruptcy.  Debt consolidation is a valid option that will not negatively impact your future as bankruptcy will.

Bankruptcy

Bankruptcy has a variety of negative implications.  For those enduring financial hardship and looking to escape the seemingly never ending bills you may be surprised to find out the costs associated with bankruptcy.  Filing for bankruptcy will cost $300 and attorney fees could be in the thousands.  Pre and post counseling will also cost you money.  If it doesn’t sound helpful for someone overwhelmed by financial issues, it isn’t.  Bankruptcy is time consuming and complex.

In addition it has long lasting future implications.  You will struggle to obtain future loans for cars and a home.  It may be difficult to rent.  Bankruptcy remains on your credit report for 10 years.  Future employment may also be impacted.  Bankruptcy should only be a last resort after all other options have been exhausted.

Debt Consolidation

Enrolling in the Christian Credit Counselors Debt Management Program (DMP) will allow you to pay off your debts over time.  All of your unsecured debt (credit cards, medical bills, and collection accounts) will be consolidated into one monthly payment and Christian Credit Counselors will send the money to your creditors.  Often the interest rates are reduced and the majority of creditors stop their fees (such as late and past due fees).  Credit harassment will stop.

Your credit score will not be negatively impacted by debt consolidation.  During the time you are enrolled in the DMP your credit report may show that you are managed by a credit counseling agency but your score will not be impacted.  In addition when you have completed the DMP the report will no longer show that comment which means you will be much more likely to obtain a mortgage or auto loan than those that experienced bankruptcy.  Future employers will view you as responsible for paying back the money you borrowed.

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