Get FREE Counseling




*


Helpful Resources
Community
Popular Discussions
Creditmagic Twitter
Credit on Facebook

Would I be better to file bankruptcy or debt consolidation

Post reply  Start a topic
Author Message
Options
Print this topic
Invite a friend
Email this topic
  Bookmark online
Add to del.icio.us
Add to YahooMyWeb
 
Shannonwasray



Joined: 12 Jul 2008
Shannonwasray's page
Posts: 1



51 Magic Points

Subject: Would I be better to file bankruptcy or debt consolidation
 
Posted on Sat Jul 12, 2008 4:48 pm  

Would I be better to file bankruptcy or debt consolidation. I owe payday loans that are passed due, my bank acount is destroyed.
CMBV22

CMBV22

Joined: 08 May 2008
CMBV22's page
Posts: 364



5163 Magic Points

 
Posted on Sun Jul 13, 2008 1:22 am  

Bankruptcy is really not the best idea these days. A few years back when you filed you would loose your debt and ruin your credit for 10 years but, it's not quite that easy anymore. These days you file and you still have to pay some of your debt and you still kill your credit for years. As far as debt consolidation, why are you going to pay someone else to pay your bills if you cant afford it? What you need tp do is make a budget, cut corners where you can. Pay all of your secured debt each month and then pay what you can to your highest intrest rate accounts first. Trt to make arragements with each company to try and prevent any court summons but, if they are unwilling to work with you as I said pay what you can to the high intrest reate accounts first. As they will cost you more in the long run. Then work your way down to the less expensive accounts. Also remember not to give away all of your money. you need to save some money incase of emergency so you don't ever take another payday loan.
_________________
****************************
Free sample letters,
info on paying off payday loans,
and quick credit repair tips.
Pesonalized credit repair advice in the forum:

www.homecreditrepair.net

http://homecreditrepair.hqforums.net/
anthony

anthony

Joined: 31 Jul 2006
anthony's page
Posts: 516



13587 Magic Points

 
Posted on Mon Jul 14, 2008 6:46 am  

Hi Shannonwasray
You should opt for debt consolidation services if you think that you are in a position to pay off your debt. Debt consolidation helps you by consolidating all your debt account into a single account with low interest rates. However, if your debts are out of your control, then I think that bankruptcy is a better option. So I would advice you go for credit counseling first before deciding which option to chose.
_________________
Anthony Marx

A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible.
Justin

Justin

Joined: 17 Jul 2006
Justin's page
Posts: 1238



28944 Magic Points

 
Posted on Mon Jul 14, 2008 6:59 am  

Hi Shannon
Since you have payday loans, you must be paying very high interest rates. So I think you should go for a debt consolidation loan to pay off the payday loans first. But as Anthony said, if your loan amount has gone out of your control you should go for bankruptcy. However, bankruptcy will stay in your credit report for 10 years and adversely hamper your credit score.
_________________
All the Best Smile
Justin
goodnatured



Joined: 03 Nov 2007
goodnatured's page
Posts: 3931



389 Magic Points

 
Posted on Tue Jul 15, 2008 3:01 am  

Sounds like wise advice Justin
_________________
Goodnatured,
http://cashinpocket.synthasite.com/
for all the ways I make $$ online
http://www.crazymonkeygold.com/members/register.php?ref=fedupinpa
Lorri



Joined: 15 Jul 2008
Lorri's page
Posts: 246



244 Magic Points

 
Posted on Wed Jul 16, 2008 6:23 pm  

I have filed bankruptcy (8years ago) and it is definitely a last resort. My advice would be to exhaust other avenues first if you possibly can. Yes, it was a a relief when I did the BK, but it also took a toll on my nerves.
Justin

Justin

Joined: 17 Jul 2006
Justin's page
Posts: 1238



28944 Magic Points

 
Posted on Thu Jul 17, 2008 1:08 pm  

I agree with you Lorri. Bankruptcy should always be the last resort and before filing bankruptcy we should explore all other way to pay back the debt. This is because once you file bankruptcy, it gets reflected in your report and a potential creditor will look upon you as a high risk customer and will charge very high rates of interest on future credit. Moreover, this bankruptcy will stay on your credit report for ten years.
_________________
All the Best Smile
Justin
Lorri



Joined: 15 Jul 2008
Lorri's page
Posts: 246



244 Magic Points

 
Posted on Fri Jul 25, 2008 7:37 pm  

Bankruptcies are or can even be looked at by potential employers.
anthony

anthony

Joined: 31 Jul 2006
anthony's page
Posts: 516



13587 Magic Points

 
Posted on Wed Jul 30, 2008 12:10 pm  

You are correct Lorri. Even if you do not disclose your bankruptcy, potential employers sometimes make routine checks of bankruptcies and if you have any such listing in your credit report, you may not be considered by them. So bankruptcy should always be the last resort as said by Justin.
_________________
Anthony Marx

A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible.
fireyone



Joined: 26 Feb 2008
fireyone's page
Posts: 4246



96 Magic Points

 
Posted on Wed Jul 30, 2008 1:00 pm  

I agree with anyone who says bankrupsty is a last resort. It really is like being behind bars because it holds you back in soo many ways once you do. I think it is a little bit pushing it that all types of employers can use it but I guess if you were trying to get a job at the bank it would have some importance.
erb1953



Joined: 31 Dec 2007
erb1953's page
Posts: 547



-100 Magic Points

 
Posted on Thu Jul 31, 2008 10:12 am  

oh, it is amazing what credit affects these days, you are right fireyone, it can affect your ability to get a job and many other things. Good comparison on being behind bars.
fireyone



Joined: 26 Feb 2008
fireyone's page
Posts: 4246



96 Magic Points

 
Posted on Thu Jul 31, 2008 12:47 pm  

Sounded fitting. I just don't think once a person screws up it should be an automatic 7 year sentence.
goodnatured



Joined: 03 Nov 2007
goodnatured's page
Posts: 3931



389 Magic Points

 
Posted on Mon Aug 04, 2008 10:55 pm  

True, I think it is a little much, wonder how they came up with the 7 years, why not 5, or 6, why 7.
_________________
Goodnatured,
http://cashinpocket.synthasite.com/
for all the ways I make $$ online
http://www.crazymonkeygold.com/members/register.php?ref=fedupinpa
fireyone



Joined: 26 Feb 2008
fireyone's page
Posts: 4246



96 Magic Points

 
Posted on Tue Aug 05, 2008 1:26 am  

Because then you wouldn't be as miserable.
BigBird
Guest






Subject: numbers
 
Posted on Sun Sep 20, 2009 11:49 pm  

If your bills exceed what you make, would that be a good reason to file bankruptcy? example. bills are $4,500 per month, $1,500 of that would be dropped via bankruptcy. Your income averages about $2,000 per month. how could you pay the debt consolidation firm?

Quick Reply
Your Name
Subject
Message body
1, 2  Next  
Page 1 of 2

 






Page loaded in 0.069 seconds.