East Hazel Crest Bankruptcy Attorney Answers The Question: Is Debt C...

The answer is unequivocally no.  Credit consolidation is something that people should never, ever look to.  Most of those credit consolidation companies, although they make a lot of promises, are nothing but scams.  They’re going to take a lot of money in attempt to settle your debts.  This is not a good way to deal with your debt.  Bankruptcy is written into the federal code and you know it will work.  Also, in credit consolidation, your creditors do not need to participate in a credit consolidation program.  Therefore, you may spend a lot of money on a credit consolidation program and still end up with a large amount of debt. 

Therefore, bankruptcy is most always the better option than credit consolidation and there is one bright line rule that everyone should know.  Any time you settle a debt for less than 100%, it is going to affect your credit.  Therefore, credit consolidation is not better for your credit then a bankruptcy.  For more information, consult with a local bankruptcy attorney to see if Chapter 13 can provide relief.  More likely than not, Chapter 13 will be of great help.