Bankruptcy is when a person or business officially declares the inability to pay back creditors the money that was previously borrowed. This should only be done as a last resort, because bankruptcy will affect every aspect of your life.
It will also affect your ability to get loans, mortgages, and credit card in the future. However, for some people, declaring bankruptcy means finding freedom once again. It wipes your slate clean so to speak, and you can start over again with your credit.
However, there are a number of things you should try before you declare bankruptcy. One of these things is debt consolidation. Debt consolidation cannot help everybody concerned with money problems, but for some, it is jus the boost needed to keep them from declaring bankruptcy.
Debt consolidation is basically taking all of your loans and paying them off using one large loan. You then have one monthly bill to pay instead of a number of smaller bills. This can save you money in the long run. Why? The one large loan will usually have a secured lower fixed interest rate. This is especially advisable if you are considering declaring bankruptcy because of high credit card debts.
Credit cards have very high interest rates—usually much higher than any other kind of loan. If you miss just one month of paying your card in full, you may never get back on track for paying off the balance. This can really start to add up if you find that you have more than one card. If you are far into debt, you can probably not get an unsecured loan from a financial institution, like a bank.
However, you should be able to get a secured loan. A secured loan uses your house, car, or other possessions as collateral. With a lower interest rate, you can start making headway into your debt instead of simply making the minimum monthly payments. This will help you to avoid bankruptcy.
Consolidating your debts may not be the best choice for everyone. In fact, in some cases, bankruptcy is really the best way to get back on the financial fast track. However, it is important to realize that you have choices.
If you don’t have to declare bankruptcy, avoid it and you will find that your life will be financially easier to handle in the future. It depends on your unique situation. Talk to a financial professional if you want more help learning about debt consolidation.
Advertisements
Bankruptcy Related Books from Amazon
|
How to File for Chapter 7 Bankruptcy List Price: Sale Price: $15.00  |
|
|
In these times of massive credit card debt and stagnating incomes, filing for bankruptcy has become the only relief for thousands of people. The information in How to File for Bankruptcy is so complete that a person can file virtually on his own, without needing to hire a lawyer... |
 |
Bankruptcy and Debtor/Creditor: Examples & Explanations, 5th Edition List Price: Sale Price: $35.00 |
|
To keep pace with the recent major changes in bankruptcy law, noted author Brian Blum presents a completely revised edition of his popular study guide, Examples & Explanations: Bankruptcy and Debtor/Creditor... |
|
The New Bankruptcy: Will It Work for You? List Price: Sale Price: $14.98 |
|
|
Veteran Nolo author and consumer debt expert explains all of the options available to people with an unmanageable debt burden. Filled with clearcut answers and practical suggestions, the book reassures readers concerned about: wiping out all of their debts; losing their housekeeping their car and other property; retaining their credit cardslosing their job; losing custody of their children; going to jailand much more... |
|
Bankruptcy Law: The Quick Guide List Price: |
|
|
"Bankruptcy Law: The Quick Guide" presents a comprehensive reference to the laws that govern U.S. bankruptcies in a compact, useful format. This digital compendium highlights all of the key components of the law from key roles and responsibilities to practical applications... |
|
The Bankruptcy Life Line What Your Creditors Hope You Don't Know List Price: |
|
|
The Bankruptcy Lifeline is a book for people who need fast information about bankruptcy, but don't want to have to read an entire text book to get it. It will explain how to get the most out of their meeting with a Bankruptcy Lawyer... |
 |
The Elements of Bankruptcy, 5th (Concepts & Insights) List Price: Sale Price: $34.69 |
|
This casebook is an authoritative introduction to bankruptcy. Case studies, case notes, and examples illustrate points under consideration. Thought-provoking questions generate classroom discussion and hone students' legal reasoning... |
|
Personal Bankruptcy Laws For Dummies List Price: Sale Price: $3.98 |
|
|
With tips on understanding -- and surviving -- the new bankruptcy lawsIf you're considering bankruptcy, you need straightforward answers and reliable advice. This handy guide covers it all -- so you can get your finances in line and your life back on track... |
|
Bankruptcy, Cases, Problems and Materials (University Casebook) List Price: Sale Price: $168.14 |
|
|
The new edition of Cases, Problems and Materials on Bankruptcy retains the sophistication of the original Baird and Jackson casebook and has been refashioned so that it is easier to teach. Law school casebook that offers a clear explanation of the bankruptcy process while simultaneously challenging the student with commentary and questions that explore both new and classical bankruptcy themes... |
Posted by Irwan on November 13, 2009
debt conslodiations is indeed very necessary to have a very good credit record,`-
Are there any more websites that gives detail about debt consolidation?”;;
Debt Consolidation is really important for the future security of your personal finances.;`;