Bankruptcy, the thought of it leaves a bad smell in the air, or at least the is the way creditors will act after filing. Bankruptcy has a negative effect on credit reports, too. One that will last for ten years. Making it very hard to buy a car, rent or buy a home or many of the others activities that require a card rating.
Bankruptcy should be the final option, only used when all else has failed. Bankruptcy has such a negative aura that people have jumped out of windows rather then face it. It is not the only option though. When it seems that the bills keep piling up higher and higher and borrowing money to make the bills becomes a way of life, think about debt consolidation.
Debt consolidation is where all the bills are gathered up and a loan taken out to pay them off, a loan with a lower rate of interest. That is where the money is saved. Instead trying to juggle numerous bills , there will be only the one monthly payment.
Before any decisions are made, there must be some research. A call to the Better Business Bureau to see if the company in question has a good reputation, or if there has been any complaints against them,should be first. Next, a call to the District Attorney's Office should be done to see if there are any charges being filed against them. These steps and warnings can not be repeated enough. There are countless con artists. Next try to find out how long the people have been in the community. People with ties to the community are less likely to pack up a leave with your money.
After going through all that trouble to find a company that can be trusted, be sure that full advantage is taken of all their services. Most companies will offer credit counseling, too. Once the plan has been made stick with it. That is the way to a better credit rating.
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