| You have had some tough times, whether in your | | | | to pay your outstanding debts, which after a debt |
| business or your personal life, and you may be | | | | consolidation loan, may only be one large payment. |
| considering filing for bankruptcy. While the option of | | | | The downside here is that since you are so far in debt, |
| bankruptcy may be your only option, you need to be | | | | the debt consolidation loan will very likely be at a much |
| aware that it is not your ONLY option, and in reality, | | | | higher interest rate than you could have gotten if you |
| bankruptcy should only be used as your last resort. | | | | had excellent credit. Granted, the overall amount of |
| Why? For many reasons, and one of the foremost | | | | interest you are paying each month is almost certainly |
| reasons is that bankruptcy will continue to haunt you | | | | less, but it is still not an overly attractive interest rate. |
| for 7 to 10 years on your credit report. When | | | | The biggest downside to a debt consolidation loan is |
| bankruptcy is seen on a credit report for someone | | | | that you may then consider yourself to be free of all |
| applying for credit, this is a huge red flag to them and | | | | that debt. Nothing could be further from the truth. You |
| many thoughts start to go through their minds. Is this | | | | still have that debt. The strong temptation will be, since |
| person not responsible with credit? Does this person | | | | now your credit cards have a zero balance, to charge |
| not understand that credit is really "renting money" and | | | | them to the hilt again, which will only get you back to |
| cannot be considered "free money"? Is this person | | | | the same place you are now, except that you will also |
| trying to lead a champagne lifestyle on a beer budget? | | | | have responsibility for paying the debt consolidation |
| The reality is that nobody goes into debt thinking that | | | | loan. |
| bankruptcy will cure all their problems if they get in | | | | Make sure you have a PLAN for how you are going |
| over their head. That is not the case at all, and the act | | | | to manage your finances, even if you do need to file |
| of filing bankruptcy will mark you as a "leper" for many | | | | bankruptcy. If your debt obligations exceed your |
| years, which is why all viable options and alternatives | | | | monthly revenues, then you are going to have a |
| should be thoroughly investigated before you file | | | | problem, and no amount of book-juggling can change |
| bankruptcy. | | | | that fact. Most people think that more income is the |
| There are many options to bankruptcy that many | | | | answer, but more often than not, the reality is that less |
| people do not consider, or they do not think of them | | | | expense is a much better long term option, since you |
| until they are too far down the bankruptcy path to | | | | are probably making payments on things that are not |
| change direction. Even if you are laden with debt, it is | | | | absolutely critical to the revenue-producing part of |
| still possible to get a debt consolidation loan from many | | | | what you do. |
| lending institutions. A debt consolidation loan can pay | | | | You need to talk with a qualified bankruptcy lawyer |
| off your outstanding debts and give you some much | | | | who is familiar with the bankruptcy laws in your state. |
| needed breathing room while you get your act back | | | | You can get a free evaluation from a bankruptcy |
| together. | | | | attorney who is local to you to discuss your situation |
| On the positive side of a debt consolidation loan, you | | | | and determine your best course of action. Bankruptcy |
| will have avoided filing for bankruptcy and all the credit | | | | may be an option, but it is certainly not your best or |
| report negatives that go with that. But on the | | | | only option most of the time. |
| downside, you need to be aware that you will still need | | | | |