A Debt Consolidation Loan Can Help To Avoid Bankruptcy
In one of the tightest and most stressful financial situations of your life, you're clearly losing your mind, juggling which credit card balances to pay off first. To top that off you're being constantly harassed, plagued with intrusive and quite ill-timed telephone calls from creditors asking for their money and notifying you of due dates. It just never stops. And you've been dealing with this for years.
Your quick fix resolution - to file for bankruptcy. That's right, the end all, last call, in-a-dire-financial-situation-solution, bankruptcy. You've been fed up, and you're going to turn to this, simply to give you a clean financial slate, to start anew. But, before you commit to such a common debt relief tactic, know that it might not be what you perceive it as. Consider that you have other options and that bankruptcy itself isn't actually a motion exempting you of all your debts.
Bankruptcy Options: Why to Consider Other Options
Looked upon with a sense certain, total relief, bankruptcy is a financial alleviator, but only to a certain extent. Most assume that through filing for bankruptcy, all debt is written off, when in actuality this is not so; certain financial obligations are not dropped. Student loans, alimony, particular types of taxes, spouse support, child support and criminal fines are of those not taken off your due debt list. So, it seems then that bankruptcy doesn't act as a complete cleanser for your dirty financial position, despite prior notions.
What's even worse is how declaring bankruptcy smudges your credit report and overall history, for quite some. For 7 to 10 years, evidence of filing for bankruptcy will be publicly available and will even make it difficult, if not impossible, to get new credit, a new home, a new car, certain insurances - and worst case - an apartment to rent or even a new, better paying job. Even if credit can be had after filing, it's certain to be so high that it's not even worth having. This said, bankruptcy is something that should be approached with extreme caution, something that should only be used as a true, last financial resort.
Avoiding Last Resorts: Opt For The Debt Consolidation Loan Option
Be smart and steer clear of filing for bankruptcy. Instead, turn toward more viable and less damaging financial relief options. If you feel like there's no way out of your current debt mess with bankruptcy options now squashed, think again. By filing for debt consolidation you will be spurring one of the most ameliorative actions toward stepping your way out of debt.
The Debt Consolidation Breakdown
Through a debt consolidation, what happens is, well, a consolidation of all your outstanding debt. More or less, it's a unifying action, one accumulating all your debt together. So, instead of having confusing, multiples debts and/or balances needing to be payed at differing times, debt consolidation takes said debt, brings them all together into one large, more manageable and singularly timed loan. Once this occurs, multiple payments are no more and just one payment per month is all that's required of you. This is beneficial, as it reduces chances of you missing or being late on payments.
Such a single payment also paves way for one (get this) reduced interest rate. Through this gift, of sorts, paying off payments on a monthly basis becomes easier and more doable, keeping within your debt payment budget.
Reconsider using bankruptcy as a debt relief option. Instead, see if you qualify for assistance through a debt consolidation loan.
Source: http://ezinearticles.com/
Added: April 26, 2008
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