Debt consolidation is a better solution than bankruptcy; however,
in most instances, it is not the best solution for resolving your debts.

Many of the debt consolidation programs will exhaust the limited
funds by incurring fees for using their service. Their solutions will
also put you at risk of loosing your belongings.

Debt consolidation programs will also charge high rates of interest
for their services. There may even be a monthly charge attached
to the plan. The best solution for resolving debt is to contact the creditors
and ask for extensions on your repayment plans. Some creditors will
negotiate, offering you lower fees if you pay the debt off sooner. Some
creditors will even drop the debts owed, realizing that the chances of
getting their money is nil. You never know until you ask.

If your bills are lowered, it will grant you time to land some extra cash to
payoff the debt owed. Some creditors may charge the amount, but lower
your monthly installments according to your wages. This will allow you
room to repay the debts at lower rates. Be aware that paying lower
balances on debts may lead to costly IRS obligations and taxes,
since if you are a "write off" or else reduction candidate, the information
is posted with the IRS.

When it comes to debt, it can become frustrating, since it appears there
is no way out. When you are working to restore your credit, you are working
toward a brighter future. Remember, each bill you pay off subtracts the
amount owed. Debt consolidation is like cutting grass, in that the lawn looks
fresher once the weeds are whacked. It makes no sense to ignore your debts;
rather working toward debt relief means working now to get rid of your debts.

Talbert Williams 1DebtFreedom.com All rights reserved