No. In a consolidation, you are paying the debt off in full, with interest. In a bankruptcy, you would not. Bankruptcy is a definite negative on your credit for up to 10 years, and should only be considered as a last resort.

Each person’s debt is different, so it makes sense that each program is different. Consolidating your debt will allow you to pay it off much faster than if you just made the minimum payments. Making minimum payments only on a credit card with 19% interest, and a $2500 balance will pay off the card in 29 years! When consolidating, usually your debt is fully paid in five years or less.

Settlements are a good way to get an pay an accountl for less than the actual balance. However, your credit report will read ”settled” instead of “paid in full”. Settlements are only good if you’ve got “cash now”. Most settlements will be between 50% and 75% of the total bill, but payment will either be due in full immediately, or dispersed over 3-4 months. Don’t avoid paying your bills while saving to do a settlement, your balance will continue to escalate if it is not addressed.

You can consolidate just about any bill. Credit counseling is designed to address credit cards, unsecured (or signature) loans, items in collection, medical bills, judgments and potential garnishments. We will look at ALL of your bills, and show you all of your options concerning debt consolidation.

It could. Most credit card companies do report it. Usually people who seek consolidation already have late payments and possible collections on their credit, so their credit is negative anyway because they cannot afford their current bills. However, if you have negative information on your credit report now, credit counseling will bring those accounts current, which is a plus. After the bills are paid, there is no record kept of credit counseling.

You should not be acquiring new debt while you are in counseling to pay off your current debt.