Consolidating debt vs bankruptcy
My wife and I have ,000 in credit card debt across five companies and are unable to handle the monthly payments.-- Dear Eric, Bankruptcy will generally cause the most damage to your credit report. Once you make the decision to do something about it, you usually contemplate debt consolidation or bankruptcy. Below we have explored some of the benefits and drawbacks of each.Debt consolidation can take many forms, but for this blog we will look specifically at companies that take some or all of your debts and negotiate a settlement with your creditors.
Consumers will still owe the same amount, but instead of owing multiple creditors, they now owe one.
But what happens when you’re laid off, fired, or otherwise can’t make your payments?