If you are in debt then I know how bad things can be because I have been there.
The good news is that there are ways to get yourself out of debt and back into life and help you avoid bankruptcy.
However, before you consider debt consolidation there are 3 vital things that you need to know.
1.
If you use a debt consolidation loan to pay off your debts because you are paying creditors through a 3rd party it will make it look like a chapter 13 bankruptcy to future lenders and seriously affect you credit score.
This will make it much more difficult to get loans or credit in the future.
2.
A debt consolidation company will charge a significant monthly fee on top of your existing debts so you will end up paying back even more.
3.
You will need to be able to afford to pay at least 2-3% of your total debts per month and if you miss one payment you will be dropped from the plan.
There is a far better alternative to debt consolidation and that is debt settlement.
In debt settlement, a specialist debt settlement company will negotiate with your creditors to reduce the total amount of debt that you owe, (this can be by up to 80%).
They can also reduce the interest rates you are paying, or adjust your repayment schedule.
This will not affect your credit score and any payment to a debt settlement company is only ever based on a commission of how much they can save you! Debt settlement programs are flexible and allow the individual to pay an amount that they are comfortable with and can normally get someone debt free in at least half the time a debt consolidation program would take.