Is Debt Consolidation a good bankruptcy alternative?
Debt consolidation is a good bankruptcy alternative for some people, but not for others.
Debt consolidation is a good alternative to bankruptcy if you have high interest rate debts, such as credit cards or finance company loans, and you have the ability to borrow at lower interest rates. By borrowing at low interest rates, such as through a second mortgage, debt consolidation reduces your monthly payments, and is a good alternative to bankruptcy.
On the other hand, if you can't borrow at lower interest rates (perhaps because you don't own a house), or if you don't have enough income to repay a debt consolidation loan, debt consolidation may not be a good alternative to bankruptcy for you.
We suggest you make up a monthly budget to determine what you can afford, and then use that information to decide if debt consolidation is a good alternative to bankruptcy for you.
Posted by Bankruptcy Alternatives Blog
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