The Bankruptcy Explained Series – Debt Consolidation vs Credit Repair vs Bankruptcy
Debt Consolidation vs Credit Repair and Bankruptcy, which is better for you?
Ryan Alexander: Las Vegas Bankruptcy Attorney
The most important thing I’ve learn from handling well over 1300 bankruptcy cases? Every single person is different, and every single case is different. There is no cookie cutter approach that will provide each person the individualized case results need and deserve. I know that this can be a stressful time. So I do my best to give you the best possible service, create the best possible outcome, all while treating you with respect.
I want to help people facing bankruptcy, which is why I created a Youtube channel. To date that channel has over 50 videos that almost 600,000 views.
What is debt consolidation?
What do debt consolidation services do?
Debt consolidation services are companies that help individuals or businesses combine multiple debts into a single loan or payment. The goal of debt consolidation is to simplify debt repayment and potentially reduce the total amount of interest paid over time.
Debt consolidation services typically work by negotiating with creditors to lower interest rates or negotiate a lump-sum settlement, then combining all debts into one loan or payment plan with a fixed interest rate and term. The borrower then makes a single monthly payment to the debt consolidation service, which distributes the funds to each creditor.
Debt consolidation services may also offer financial counseling and budgeting advice to help individuals or businesses better manage their finances and avoid future debt problems.
It is important to note that not all debt consolidation services are reputable, and some may charge high fees or offer loans with unfavorable terms. It is important to research any debt consolidation service before working with them and make sure that they are reputable and transparent about their fees and services.
Do credit repair services really work?
What is the purpose of a credit repair service?
Credit repair services are companies that offer to help individuals improve their credit scores by addressing errors or inaccuracies on their credit reports. These companies typically work by reviewing an individual’s credit report and identifying any negative items that could be impacting their credit score, such as late payments, charge-offs, or collections.
Once these negative items have been identified, credit repair services may attempt to have them removed or corrected by contacting the credit bureaus and disputing the information on behalf of their client. This may involve providing documentation or evidence to support the dispute.
In addition to disputing negative items on credit reports, some credit repair services may offer other services such as credit counseling, debt consolidation, or credit monitoring.
It is important to note that while credit repair services can be helpful for individuals with errors on their credit reports, there is no guarantee that their services will result in a significant improvement in credit score. Additionally, some credit repair services may engage in unethical or illegal practices, so it is important to do your research and choose a reputable provider.
Which is better for me Credit Repair, Debt Consolidation or Bankruptcy?
It’s not just that easy.
The answer to that question depends on a few variables including where you live, the amount of debt you have and the income you have, if any, to repay your debt. No matter which choice you ultimately select, the repercussions will last for a very long time to so choose wisely. Talking to a professional is always encouraged. You should also take a moment and watch this video, it may answer some of your lingering questions.
