Consolidating debt a good
To pursue bankruptcy, you must qualify and complete the entire process, including pre-filing and post-filing counseling.
While a debt consolidation is less risky than other options, like bankruptcy, it still carries a considerable amount of risk.
With bankruptcy, you officially declare that you cannot pay your debts.
When you take out a consolidation loan, you are required to put forth collateral.
Most often, the required collateral is a second mortgage or a home equity line of credit.
Because there is no general industry consensus as to what the best ways to manage debt are, we have narrowed down your options.
Many of these options work hand in hand with or as part of a larger debt reduction program, but in general, these are your choices: Debt Settlement: Settlement is the process of negotiating with your creditors in hopes of reducing the total amount of debt you owe them.
Companies usually attempt to lower your debt through debt settlement before recommending you take out a loan.