Do you wake up in the morning feeling as if your stomach was on fire? Do you wish you could hide your head under a pillow and just stay in bed? Is it because you’re seriously in debt and just don’t know which way to turn? If so, you’re not alone. I saw one report recently that 30 million Americans have debts that are eligible for collection. This means they are not only carrying a lot of debt but are having a problem making even the minimum monthly payments. I also read not long ago that the average US household has nearly $16,000 just in credit card debts. And you can bet that many of those people are part of that group of 30 million Americans whose debts are subject to collection.
You could always choose bankruptcy
One way to deal with overwhelming debt is to file for a chapter 7 bankruptcy. This will discharge or get rid of most of your unsecured debts, including any credit card debt, and in just three to six months. However, a bankruptcy is neither a be-all nor an end-all. You cannot use a chapter 7 bankruptcy to discharge student loan debts, alimony or child support and any back taxes you owe. A chapter 7 will allow you to keep some of the equity in your house, your automobile and any tools that are required in your job. But everything else is fair game to be seized and sold at auction. This means you could actually lose some very prized possessions.
10 long years
The biggest problem with filing for bankruptcy is that it will stay in your credit report for 10 long years. These are 10 years during which you will have a tough time getting any new credit. In fact, for the first few years, you would probably not be able to get either a mortgage or an auto loan.
Personal loan consolidation could help
Consolidating all of your debts with a debt consolidation loan could be a much better answer than filing for bankruptcy. It can also be a very quick and easy way to get your debts under control. You would just have to borrow enough money from your bank or credit union to pay off all your debts. That way you would have just one payment to make a month versus the multiple payments you’re probably making now. Your payment should be lower than the sum of your current monthly payments and your interest rate should be much less.
Doesn’t that sound great?
That might sound like a great solution but it’s important to understand that personal loan consolidation does have some negatives. First, you may not be able to get one. Banks and credit unions are not anxious to loan money to people who are already having a problem with debt. Second, you’re not getting out of debt. You’re just moving it from one set of lenders to another. It will probably take you seven years or longer to pay off that loan and you’ll end up paying more in interest than if you simply paid off your debts the normal way.
So a personal loan consolidation could help but …
Personal loan consolidation can help but a better solution might be what’s called debt consolidation. Our debt consolidation partners are so sure they could help you get out of debt in a reasonable amount of time that they offer a simple 100% satisfaction guarantee. Be sure to call our toll-free number for more information about debt consolidation or fill out the form you’ll find on this page to get a free debt analysis and estimate.