What is the greatest method to consolidate debt ?

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Hello All Members,

What is the greatest method to consolidate debt exclusive of it touching your credit score?

All the Comments are appreciated…

Unforuntately, you can't outside business credit cards and lines of credit. If you need to consolidate debt, your score is probably not in the position to obtain said products. They are growing increasingly hard to come by.

Your options for this are pretty limited. First, you can go with a simple debt consolidation, which is taking out one loan to cover the rest of your debt at a low interest rate and monthly payment. Or, on the other hand, you can declare Chapter 13 bankruptcy, which is the payment of all of your debt over a period of three to five years. For many reasons, the former is definitely the better option if you wish to secure a good and reliable financial future.

The first and largest reason for this is that declaring bankruptcy is the single worst thing that you can do to damage your credit. Nothing else comes close. Declaring bankruptcy will mean that for the next five to seven years, until it expires, you will not be able to get any more loans or credit at a reasonable rate. Debt consolidation, by contrast, if you are able to keep up with the payments, will almost never hurt your credit score at all.

Furthermore, if you choose to "consolidate" through Chapter 13 bankruptcy, you will have to go at it alone, unless you wish to pay extra to secure the services of a financial expert. If you consolidate your debt, you will frequently find that services offer free financial planning and advice just for the cost of the interest that you are already paying on your loan. This means that if you follow the given advice, you can probably be sure that even once you are out of this financial hole, you will not fall back in. The same is not true of Chapter 13. In fact, the majority of that kind of bankruptcy fail.