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Debt Consolidation or Bankruptcy: Which Is Right for Me?

As bankruptcy attorneys, we often get questions from clients asking if it is better to consolidate all of their debts or file for bankruptcy. This simple answer is: it varies from case to case. Below, our legal professionals explain what debt consolidation is to help you decide which is right for you.

What Is Debt Consolidation?

When you consolidate your debt, you are taking out a new loan from another creditor to pay off your debts. Whether or not debt consolidation is better than just trying to keep up with the initial debt depends on whether the terms of the new loan are better than the terms of the old loans. If you are able to get a lower interest rate or a longer repayment term, then it might benefit you in the long run.

If you are worried about having access to credit, then debt consolidation might be the option for you. However, it is important to remember that if you don’t have enough income to pay your debts, then debt consolidation won’t help and might actually end up costing you more than filing for bankruptcy.

People who decide to consolidate their debt often choose this option because of how simple the arrangement is. While it’s nice to have one payment instead of many, you are still paying more, just over a longer period of time.

Talk to Our Legal Team About Your Case

Do you want to pay back your debt but need more time? Are you not sure if debt consolidation or bankruptcy is right for you? Then consult with our legal team in Berkeley County to discuss the details of your case. We can review your financial situation and explain all of your options under the law so you can decide the best path forward. We are here to put our skills to work for you today.

Call (304) 867-0049 to request a free consultation with our legal professionals.