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Category: Bankruptcy

4 Useful Benefits Offered By Debt Consolidation

If you’ve run up a significant amount of credit card debt and other bills, then debt consolidation might help you come out of the crisis. It involves combining all your high-interest unsecured debts into a single monthly payment. A debt consolidation program often proves to be a successful technique to fight debt problems. Some useful benefits of consolidation are given below:

Debt Consolidation

1) Avoid bankruptcy

Debt consolidation helps you avoid filing bankruptcy. Bankruptcy remains on your credit report for 10 years and adversely affects your ability to get credit.

2) Restore your credit

Your credit score can go down as a result of delayed payments. Debt consolidation can help you boost your credit score. An improved score helps you become eligible for reasonable interest rates on home loans, car loans and other types of credit. When you’ve completely paid off all your debts through consolidation, your credit score would gradually go up.

3) Handling your payments becomes simpler

This is the most important benefit of debt consolidation. Rather than making multiple payments to different creditors, you just have to manage a single payment every month. Reduced interest rates lower your monthly consolidated payment so that you can manage it easily.

4) Faster debt payoff

If you try to pay off your high-interest debts without debt consolidation, it would seem to be an almost impossible task and take a lot of time. The consolidation company negotiates with your creditors to reduce your interest rate. When they are successful in doing it, your monthly payments also get reduced. The greater part of your monthly payments is used to pay down the principal balance of your loans. You can then pay off your balances faster.

Debt consolidation works as a helpful solution to eliminate your debt burden and benefits you in many ways.…

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How To Get Life On Track After Bankruptcy

If you filed for bankruptcy and received a discharge, the stress is now behind you, but the work will still continue. Filing for bankruptcy is to give a consumer a fresh start, with out the burden of overwhelming debt. This is a change to get your life on track and start working hard to keep it that way.


If you filed for bankruptcy a lot of people may have put fear in you that your credit will be ruined forever. This is just not true and even after filing bankruptcy you can get approved for a loan in three years. The first few years coming out of a bankruptcy are the most important though, for rebuilding your credit and finances. Likely before bankruptcy, you were struggling, with your money and paying your bills on time. After bankruptcy, you need to learn how to manage you money and not get back in debt.


Rebuilding your credit after bankruptcy is the most important step that you need to work on consistently through out the next few years. You may want to work with someone who is a money management expert, so you can learn how to budget your spending. Being money responsible means keep track of your spending, you need to know where you money is going. This means writing things down, going over receipts every day, look at everything at the end of the month and find out exactly how your spending your money.

After bankruptcy you want to keep up on all your payments, for utility companies, rent, etc. Do not miss a payment and do not pay anything late, this will hurt your credit rating and in a few years when you might want a loan, you will not get approved. You want to spend time trying to raise our credit score and remember and everything takes time.

Banks will have secured credit cards you can get approved for after bankruptcy, where deposits are made by you to cover the line of credit. Be careful though some credit cards come with very high interest rates. If you use these cards with no self-control you will likely find yourself bank in financial trouble. If you must use a credit card, then make sure you pay off the whole amount, before any interest is acquired. This is a good way to build up your credit score, but do not start to early with these credit cards and only use them once a month for something small, no more than a fifty-dollar deposit. That way you can be sure to pay it off each month.

The one thing you can look forward after bankruptcy is loosing all the stress and financial worries that were probably keeping you up at night. The nice thing about starting with a clean slate and now worries is you can concentrate on other things, such as work and your health. It is important to realize how you got into so much credit card debt and learn from the mistakes so as not to repeat them.…

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