The general outlook for people's future financial health isn't looking very good. Everyone is in debt, and a lot of it. Some people have so much debt that it will take their children and grandchildren to pay it all back. It's pretty common for anyone that is at this point to feel pretty hopeless, and not know what to do. A lot of people with give up and file for bankruptcy. Bankruptcy is a wonderful tool to have available, but it should only be used as an absolute last resort. A much simpler, and more effective solution is debt consolidation.
A debt consolidation loan will provide you with the money needed to pay off all of your current debts, and immediately close out the accounts. The value of these accounts will still need to be re-payed, but only as a single payment to the debt consolidation agency. And you will almost certain have a much better interest rate than on any, or even all, of your previous loans.
Not only is this not the case most of the time, but will damage the credit score needlessly for anyone involved. When someone declares bankruptcy, they are telling their creditors and the government that they have no ability whatsoever to repay the money that they owe. The only thing they can do is sell everything they own and start fresh. Even when people reach settlements, they are often not mutually beneficial. Can you imagine a company being happy that they aren't going to be paid the money they are owed? Most people get pretty angry when they can't collect on the money they are owed.
Sometimes, the lender doesn't do a credit check and doesn't even really care. They just want you to prove that you have a steady job, and that you will be able to pay the money back. They will loan money to almost anybody.
Creditors really don't like turning accounts over to collections because then they will never see their money. Because of this, they are generally willing to reduce your debt by 50% to close up the account immediately. You really should let your debt consolidation negotiating agency handle this for you, as they will know the tricks of the trade and applicable laws.
A debt consolidation loan will provide you with the money needed to pay off all of your current debts, and immediately close out the accounts. The value of these accounts will still need to be re-payed, but only as a single payment to the debt consolidation agency. And you will almost certain have a much better interest rate than on any, or even all, of your previous loans.
Not only is this not the case most of the time, but will damage the credit score needlessly for anyone involved. When someone declares bankruptcy, they are telling their creditors and the government that they have no ability whatsoever to repay the money that they owe. The only thing they can do is sell everything they own and start fresh. Even when people reach settlements, they are often not mutually beneficial. Can you imagine a company being happy that they aren't going to be paid the money they are owed? Most people get pretty angry when they can't collect on the money they are owed.
Sometimes, the lender doesn't do a credit check and doesn't even really care. They just want you to prove that you have a steady job, and that you will be able to pay the money back. They will loan money to almost anybody.
Creditors really don't like turning accounts over to collections because then they will never see their money. Because of this, they are generally willing to reduce your debt by 50% to close up the account immediately. You really should let your debt consolidation negotiating agency handle this for you, as they will know the tricks of the trade and applicable laws.
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