Which is Better, Bankruptcy Or Debt Consolidation?

Which is better, bankruptcy or debt consolidation, this question hovers over persons head with huge debt. There are also many options available for him other than these two. He can have credit counseling, debt consolidation loan, bankruptcy or debt settlement to save him. But what strikes in one`s mind most, is which is better bankruptcy or debt consolidation. To decide that they must try to imagine in both the situation and consider what is offered in both the options.

Debt Consolidation

If we consider one`s unsecured debts by using the secured loan, some people find it troublesome as we are trying to solve one debt problem with another debt. For others debt consolidation is the permanent solution.

Different unsecured loans (like student loan, credit card debt) can be replaced by single debt consolidation loan. Instead of paying many dues, anyone can be able to consolidate all their debts with paying single lower payment. This can improve the credit score immediately. But there is criteria he had fulfill to qualify for the debt consolidation loan. He must have a stable income source to pay the loan. The lender can also ask for some security like car or house. To consider Which is better bankruptcy or debt consolidation, now concentrate on bankruptcy.


When you haven`t sufficient support to qualify for debt consolidation loan, then one can opt for bankruptcy under chapter 7 or 13 according to circumstances.

Bankruptcy is another way fleeing away from the debts.


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