In a newly published article, allstatedebtconsolidation.com breaks down why debt consolidation is a better solution than filing for bankruptcy.
Hackensack, NJ -- (ReleaseWire) -- 10/15/2015 --Many people often have to decide between debt consolidation and filing for some form of bankruptcy. Bankruptcy can be an immediate consequence of poor financial decisions and unrelenting circumstances in an individual's life. Some bankruptcies can be of his/her own doing and others are simple out of a person's control. This doesn't mean bankruptcy is the only option available to anyone that's going through it.
According to Allstatedebtconsolidation.com it does not have to be this way at all for those who are aiming to tackle their debt head on. Debt consolidation is a well-regarded option for those in financial strife that require a way out of their current financial difficulties. Allstate Debt Consolidation demonstrates to consumers what debt consolidation is all about and why it stands head and shoulders over bankruptcy when it comes to getting back to financial normalcy.
By filing for immediate bankruptcy, it enables the state and creditors to remove access from all credit related options for the declaring party. This is an undesirable situation to be in as access to credit is required for most individuals who will seek out a loan in the future. By trimming debt another way, access to credit is not going to be removed and consumers will still be able to reach out to these avenues when necessary.
It makes a substantial difference to those who are in a financial pickle and require a way out as soon as possible.
An individual's credit rating can be the difference between being content and being in a tough situation. A poor credit rating is going to make it near impossible to appease creditors and getting loans from any financial institution will go out the window when someone files for bankruptcy.
Does it have to be this way? No, as long as one is getting their debt consolidated, the credit rating is going to remain protected. This saves a lot of people from trouble down the road when they are looking to take on a loan and don't have a poor credit rating standing in their way. Debt consolidation revolves around the use of one creditor paying off the various debts and then providing a new, lower interest rate which has to be paid back over the course of the established period between both parties.
According to Jack Dominico, company representative, this new deal tends to bring along with it reduced monthly costs. The loan is under one lender and the interest rate drops in comparison to having ranging interest rates from the different types of loans that an individual would have on their account. It reduces the risk of not being able to pay back the debt substantially. Compare that to bankruptcy in which not only are consumers unable to pay back their lenders, but the bad credit stays with them for seven to ten years. That makes it much harder to get financing in the future. The simplification of one's financial problems is always welcome and those who go down the path of consolidating debt will begin to understand the benefits attached to this method immediately.
The pressures are removed entirely as one is able to focus on a specific interest rate rather than haggling with creditors and wishing for extensions.
All of this is done without seeing an impact on one's credit rating and overall financial situation. It is truly a 'way out' as some would like to suggest and reduces pressures immensely right off the bat. Bankruptcy should be a last resort and those who make the mistake of treading down this path will only be putting themselves in further financial ruin. It is smarter to seek out professional services, which are going to ensure debt consolidation is an option and provide the kind of setup that is going to yield positive results. Those who are focused on making a positive change will realize consolidating debt is an excellent method to ensure financial strife does not become a prolonged concern without a way out. Bankruptcy is not always the right answer, in fact, it rarely ever is.
Allstate Debt Consolidation helps people deal with debt and also helps consumers with every aspect of personal finance. Whether someone is trying to dig out of debt, or they just want to learn how to save more money every month, ADC can aide them in whichever option they are thinking about going with.