| I was on Yahoo Answers the other day and was | | | | you go with. You can lower your monthly payments, |
| reading a question from a 19 year old nursing student | | | | reduce your interest rates, and eliminate the |
| who was asking if they should use debt consolidation | | | | collection calls. Depending on your debt level, it can |
| or bankruptcy for their $4000 worth of debt. Find | | | | take 3 to 5 years or more to complete a program. |
| out when you should be considering these options | | | | Once you are done, you can work on rebuilding your |
| and which one can save you more money. | | | | credit. It will recover quickly now that you have zero |
| First of all, bankruptcy should not even be an option | | | | debt. |
| for only $4000 of debt. It can cost you $500 to | | | | Bankruptcy can cost $500 to $2000 up front. And |
| $2000 just to file bankruptcy depending on your | | | | that it just gets worse. Your credit file will be ruined |
| state. But secondly, the damage you can do to your | | | | for at least 7 to 10 years. You may find difficulty |
| credit for such a small sum of money is horrendous. | | | | finding a job regardless of the economy or job |
| You can participate in a research trial and get several | | | | market. You will pay higher interest rates on any |
| $1000 for a few weekends which can help you pay | | | | money you borrow in the future. Even your car and |
| off your $4000 of debt. Bankruptcy should only be | | | | auto insurance will cost more. |
| considered for serious amounts of debt, like $50,000 | | | | If you're comparing these two choices, debt |
| to $100,000 and up. | | | | consolidation will save you the most money hands |
| Now that we've got that out of the way, let's talk | | | | down in the most cases. You can find out how much |
| about saving money. Debt consolidation can cost you | | | | you can save with a free quote from a BBB rated |
| $25 to $50 per month depending on the company | | | | company online. |