I currently have over $10,000 in debt. What would be the best option, debt consolidation, or bankruptcy?

Question

I currently have over $10,000 in debt. What would be the best option, debt consolidation, or bankruptcy?

Answer 1

I think debt consolidation would be the best option. As bankruptcy will remain on your credit report for more than 10 years and if the individual is listed as having filed for bankruptcy, it results in a 160-220 point deduction on their credit score and if a delinquent account is added to the individuals credit file, 70-120 points are subtracted. During the period of bankruptcy and after bankruptcy you would face difficulty in getting loan, purchasing and leasing and building your credit. And thus you have to build your credit from start.

A debt consolidation company can help you paying off your debts by contacting your creditors and negotiating on your behalf to reduce you debts. After that they would provide you with an affordable debt management plan wherein you have to pay only one monthly installment. This may not be an immediate solution but it can prove helpful in future.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.

Answer 2

what is the debt? is it a bunch of credit cards? how did you get into this mess? key questions, but i will assume its a number of credit cards, in which case, if you consolidate, you are just shuffling your debt to one place and it will still be there. I'd start with the highest rate card and pay it off as soon as possible, then cut the card up. Do the next highest rate card and pay it off as soon as possible and then cut it up, too. It will take awhile, but it can be done and really, there is no easy way to "git 'r done". Bankrupcy laws have changed and it's not that easy nowadays to have the bankrupcy court forgive you and wipe your credit slate "clean"--plus the bankrupcy will stay with you far longer than it will take to pay everything off yourself. Maybe you can get a part time second job for a year and concentrate all your efforts at getting rid of that 10k debt. When you do, you will feel much better about yourself. Good luck.

Answer 3

Hi,

I used "Credit Solution" to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:

http://www.x.se/a5nf

Answer 4

$10,000 ISN'T A LOT COMPARED TO SOME PEOPLE. I SUGGEST YOU DIG YOURSELF OUT OF IT BANKRUPTCY ISN'T THE WAY TO GO.

http://www.oprah.com/money/debtdiet/mone...

AND GOOGLE YAHOO FINANCE.

Answer 5

Marita,

Bankruptcy is a pretty severe step, and it may be better to try and pay off your debt, if at all possible.  

There's a good article at eHow on steps to take to begin tackling your debt.  Take a look at it:

http://www.ehow.com/how_2326032_avoid-es...

How to Stop Escalating Debt

It includes information on companies (both non-profit and for-profit) that can help you with debt consolidation and reduction.  

You can also look here for tips on earning some extra cash online:

http://www.ehow.com/how_2254361_money-in...

How to make money on the internet, scam-free

Lastly, here's an interesting alternative to conventional lending...getting a "social networking" loan from Virgin Money (from the same folks who run Virgin Airlines):

http://www.ehow.com/how_2310995_student-...

Social Loans from Virgin Money

Hope these help.