Debt got you down? You’re not alone. Consumer debt is at an all-time high and it’s not getting any better any time soon. Whether or not your debt problems are the result of an illness, unemployment, or simply from overspending, it can seem overwhelming and frustrating. By reading this article, you will learn some common pitfalls to avoid and consider before looking for consolidation debt help.
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But whatever you do, Don’t File Bankruptcy before reading the rest of this article and visiting our site…Here’s why:
In your effort to get solvent, first, be on the alert for advertisements that offer seemingly quick fixes for debt problems. While the ads pitch the promise of easy consolidation debt help, they rarely say the help may be spelled b-a-n-k-r-u-p-t-c-y.
And although bankruptcy is one option to deal with financial problems, it’s generally considered the option of last resort especially when there is real consolidation debt help available without bankruptcy.
One just needs to read between the lines and to partner with a reputable debt relief company. The main reason Bankruptcy should be the last option is: its long-term negative impact on your creditworthiness in the future.
Bankruptcy information (both the date of your filing and the later date of discharge) stays on your credit report for 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live.
The Federal Trade Commission (FTC) cautions consumers to read between the lines when faced with ads in newspapers, magazines, or even telephone directories that say: “Consolidate your bills into one monthly payment without borrowing.” “STOP credit harassment, foreclosures, repossessions, tax levies, and garnishments.” “Keep Your Property.” “Wipe out your debts! Consolidate your bills!
Now don’t get me wrong, there are consolidation debt help companies that do honest work. We are just saying that you need to do your homework and choose wisely when considering debt relief. In fact, at the end of this article we will direct you to more information and where to get the best service.
However, you will find out that some of these aforementioned and “over hyped” statements can be a red flag when searching for good consolidation debt help companies. And they may often involve filing for bankruptcy relief, which can hurt your credit and cost you attorneys’ fees.
If you’re having trouble paying your bills, consider these possibilities before considering filing for Bankruptcy: 3 Things you can do to Avoid Bankruptcy today:
Talk with your creditors. They may be willing to work out a modified payment plan. If talking to your creditors seems overwhelming or you just would rather not do it, consider choosing consolidation debt help first. Our recommendations are below.
Contact a credit counseling service or reputable debt settlement company. These organizations work with you and your creditors to develop debt repayment plans. Such plans require you to deposit money each month with the debt counseling service. The service then pays your creditors for. This is a very good option for you to consider because many of these debt relief companies are trained to negotiate with your creditors and probably have dealt with your creditors in the past.
Carefully consider a second mortgage or home equity line of credit. While these loans may allow you to consolidate your debt, they also require your home as collateral.
As you can see, you do have options to consider when looking for consolidation debt help. However you do need to do something. Your debt will not go away on its own. The most common mistake of all, besides filing bankruptcy, is to do nothing and watch the problem get worse. There is help with debt problems and we’ll show you where to get it. For more information and our recommendations for the best consolidation debt help companies:
