Bankruptcy vs Debt consolidation
Debt consolidation and bankruptcy are two completely different types of debt programs. Both are used for people who are in debt but two completely different types of debt. Debt consolidation programs are for those who have debt but they are not behind or in collections. Bankruptcy is for those individuals or businesses that are no longer able to pay their debts and need some sort of out without losing all of their property or assets. Obviously these programs are on two completely different spectrums, but both can be very helpful for certain individuals.
Debt consolidation is the most sought out debt program that there is for many reasons. It is the only program that does not harm ones credit score and should not be confused with debt consolidation loans, which is usually the case. No one should ever take on secured debts for unsecured debts. This is exactly what is happening when one gets a debt consolidation loan. The absolute, only benefit that one receives when doing this is getting one payment a month, period. There are no other benefits and one is actually putting up property or assets to secure the loan which is never a good move. Now that consumers are learning more of what the debt consolidation program has to offer they are jumping on the ban wagon and becoming debt free. Debt consolidation give the consumer what they want and need a way to pay off their debts in a reasonable manner without hurting their financial futures. Consumers receive one payment, a lower payment, a lower interest and debt length. All of this without harming their credit, it does not get better that that.
On the other side of the spectrum one has bankruptcy which comes in many different varieties. Actually different chapters to be precise and are available for almost everyone that needs it. Businesses, consumers, farmers and more bankruptcy can help significantly to those who need it. Bankruptcy is for those who can no longer pay their debts or need a plan in order to pay back their debts without losing their assets. Bankruptcy is a hard decision to come to but can be very beneficial for those who need it. It is never easy but sometimes necessary to get the help that we need. When it comes to our home or business this are our life lines and should be saved by any means necessary. If bankruptcy is the only answer then it should be looked at seriously. Being able to relief yourself from debt without losing all that you have worked for is a necessary action that should be welcomed. This is a legal action that is done before a judge in a courtroom, but this is the way that it should be done. One has to agree to the terms of the court but so does all other parties that are involved. If this is what will give you the relief from an overwhelming stressful situation then it is what should be done without question.