Consolidating debt bad or good

This is the last-ditch solution if your financial situation has become so overwhelming that there doesn’t appear to be a way out.

Bankruptcy offers a “fresh start” though with lots of restrictive conditions.

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Should someone tackle their money problems with a bad credit unsecured loan or a debt solution, such as a debt management plan, personal bankruptcy or an Individual Voluntary Arrangement? Whilst those with good credit can usually get a debt consolidation loan at 8-9%, this isn’t the case for those with bad credit.

In a debt settlement, the lender agrees to accept less than the full balance of a debt in return for a lump-sum payment from the consumer.

Debt settlement is generally a consideration for people with very poor credit.

If you want to save some money and potential aggravation, it’s necessary to educate yourself in the areas where it requires a little quick thinking, a phone call or common sense. This isn’t a game for the feint of heart — or the inflexibly regimented mind. It’s time to get a handle on your daily living expenses, such as groceries, personal items and transportation.

Understanding where your money is going is the first step to credit card relief.

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