Cons to consolidating debt
A “no” answer to either question indicates too much debt.
Your best option is to consult an attorney or credit counselor about debt relief, including debt management or bankruptcy.
Their objective here is to get your lenders so desperate for some sort of payment that they’ll be more open to accepting a settlement deal.
Debt settlement is, simply put, hiring a debt settlement company to help negotiate lower payoffs on personal loans, collections, and open accounts like credit cards.
Many people see debt settlement –an option that advertises to help you pay off your debt for much less than what you owe– as a way out of their financial woes.
However, the truth isn’t quite as simple as all that.
Options for smaller debt loads that don’t put your home at risk include: 0% balance transfer card: For people with good or excellent credit, issuers offer balance transfer credit cards with introductory no-interest periods from six months to two years.
This is usually the cheapest option for those who qualify.