Debt consolidation vs chapter 13 bankruptcy: which is right for you?
When you’re looking for solutions to overwhelming debt, you may be wondering about debt consolidation vs chapter 13 bankruptcy as the best path out of debt.
Debt consolidation involves taking out a new loan to pay off several older debts. The new loan is presumably at a lower interest rate than the other debts, helping you to save money on finance charges. Does debt consolidation work? For some it does. But depending how the new loan is structured, it may actually end up taking more time and money to pay off your debt entirely.
When you file chapter 13 bankruptcy, you’ll have 3 to 5 years of protection from creditors while you pay off your debts, but your credit rating will suffer and you may have difficulty getting a mortgage or lines of credit in the future.
Getting bankruptcy and debt consolidation advice from a financial professional is crucial when choosing between debt consolidation vs chapter 13 bankruptcy. Your financial situation is unique and your best path out of debt will depend on many factors. For help evaluating chapter 13 and debt consolidation advantages and disadvantages, contact the credit counselors at American Consumer Credit Counseling (ACCC).
Free advice on debt consolidation vs chapter 13 bankruptcy.
As a nonprofit organization dedicated to helping consumers get out of debt, ACCC offers free credit counseling and low-cost debt management services.
When you first talk with our certified credit counselors, we’ll perform a complete financial evaluation to assess your situation before discussing all the options available to you. Our counselors will help you understand the pros and cons of debt consolidation vs chapter 13 bankruptcy, as well as other approaches to debt relief such as debt settlement and debt management plans. We’ll answer your bankruptcy and debt consolidation questions, including questions about debt consolidation qualifications and chapter 13 bankruptcy procedures, and we’ll ultimately help you choose the approach that’s best suited to your situation and your financial goals.
Why choose ACCC for help with debt consolidation vs chapter 13 bankruptcy.
ACCC offers many advantages when trying to decide between debt consolidation vs chapter 13 bankruptcy and other methods of paying off debt.
- Savings. As a non-profit, our credit counseling services are free and our fees for other services are among the lowest in the industry.
- Experience. Our credit counselors are highly trained and have helped thousands of individuals and families choose the best path out of debt.
- Resources. Our website offers many free educational resources where you can learn more about debt consolidation, chapter 7 and chapter 13 bankruptcy and credit card debt.
Our counselors are available six days a week by phone, and in person. Contact us today to begin your journey out of debt.