Wednesday, March 28, 2018

Why debt consolidation is better than bankruptcy

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Can debt consolidation help? When you see the terrible status of some people's personal finances, it's very surprising to notice that they obviously live in a state of total condemnation of the confusion. Sometimes it's hard to see an objective financial situation, especially when you know that they are working hard and sometimes do not even try to lead a typical champagne lifestyle in a beer budget.

There are many reasons why a person finds themselves in this situation and seldom shocks them because they usually know before they reach critical mass. The biggest problem is that so far they have not done anything and now all hell is ready. Interestingly, research shows that people in financial difficulties rarely get into trouble because of poor financial management. Sometimes this is incredible and serious financial mismanagement, but usually the reason is due to some uncontrollable conditions such as divorce, layoffs, some huge accidental medical expenses and so on.

People in this situation are looking for solutions. They may already know that a real solution is needed for a period of time, but only when things are economically bad can they admit themselves. Perhaps they have encountered something that might solve this situation, such as signing a big contract with a new customer, improving what they would have liked, or winning the classic lottery.

Actions need to be taken and actions need to be taken now, not after the drawing of lots next week. So what are your options? Whether it is a credit card, credit card, student loan or university loan, you need to do some kind of integration.

You can look at personal loans, but this actually only delays the inevitable. When it is inevitable, their financial situation will be worse, because now they have another debt obligation to deal with.

You can consider bankruptcy. Many people do this, but this is a very drastic measure. Research shows that this is a measure that people are trying to take too often, and in many ways it will have a long-term negative impact. Including credit reporting agencies in the next 7 to 10 years of credit report there are huge deficiencies. With the new bankruptcy law, you now need approval to apply for bankruptcy, so there is no guarantee that this will be your solution.

You need to consider debt consolidation. It will do more for you, not another personal loan. It is not as fierce as bankruptcy. What will happen is that you will meet with a consultant from a debt consolidation services company. He will carefully examine all your debts and then make a budget for you to follow. But there are more, because so far only one credit counseling agency has been described.

They then take your debt and you pay each month. This is different from loans because they don't pay off your debts all at once. Instead, they pay your money to each of your creditors on a regular basis according to the amount you pay them, where you have established a mutual agreement with them. Illustration.

How this works, they negotiate with your creditors to reduce your monthly payments, lower your interest rates, and sometimes even get late fees, overdue fees, and abandoned overcharges. If this is good for you, it means that you used to pay $ 2,000 a month, but after signing up with a debt consolidation service company, your current monthly payment may be only $ 1200 a month. This gives you the financial breathing space you need now so that you can start making some efforts to get them rewarded instead of being plagued by them every month.

Consider debt consolidation to help you solve your financial situation. It has already worked for thousands of people and gives them a new financial life without going deeper in the process.


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Orignal From: Why debt consolidation is better than bankruptcy

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