Debt Consolidation as a Bankruptcy Alternative

There are many companies out there offering debt consolidation. Some of these companies make claims that seem almost too good to be true. These claims include:

• Consolidate your debts into one low monthly payment
• Reduce your debt by 40%-60%
• Eliminate interest and late fees
• Get out of debt in a fraction of the time

This page includes information about the claims these companies make and will help you to make a better decision when looking into debt consolidation.

Debt consolidation services have arrangements with almost all of the major creditors where they can usually acquire a lower interest rate. When you call a debt consolidation company they reference a rate sheet and determine a new payment for you based on the lower interest rate. This rate is normally lower than what the credit companies offer the public and will save you money. One downside to debt consolidation is that most companies will require you to stop using all credit cards that are involved in the debt consolidation. You will want to keep at least one card out of the consolidation and available for emergencies. The payments are usually setup to last 4-8 years. Debt consolidation significantly benefits those who have very high interest rates (above 18%), high credit card bills, or would like the simplicity of making one payment for all of their unsecured debt.

The debt consolidation services that we suggest as a bankruptcy alternative are:

Consolidate Your Debt & Lower Your Monthly Payments!