Can't I just file bankruptcy? Enter into debt consolidation?

The choice to file bankruptcy is a tough choice and one you should never ever do without proper counsel from a bankruptcy attorney. I can tell you that there are several things that bankruptcy will not solve. For one filing for bankruptcy will not absolve you of your student loan debts. Bankruptcy is also pretty expensive. You are looking at $1500 at least for a basic chapter 7 filing and not everyone qualifies for a chapter 7 filing. If you are not able to qualify for a chapter 7 because the state requirements do not deem your situation to be dire enough, you may only qualify for a chapter 13 filing which is much more money.

How about signing up with a debt consolidation company? Debt consolidation is NOT a solution. It appears really nice on the forefront. The company says that they will reduce the interest you pay and they probably even gave you a lesser payment too. Oh and to put the cherry on top they are going to deal with the lenders for you. This seems like a pretty sweet deal.

• I have to advise you this is not what it appears to be. Most of the time they are not planning to pay what you actually owe and it in turn destroys your credit. Additionally, lenders namely mortgage lenders look very poorly on debt consolidation companies as it looks like you have a habit of taking out debt and failing to pay it back as agreed. '

• This does not solve the problem. Most of the people that utilize debt consolidation with a company or utilize an offer from another lender to roll all of their debt onto one card end up racking up the debt on the cards they paid off all over again.

My goal is to teach you how to stop leaning on debt to solve your problems. I can promise you if you follow my plan, you WILL win with your finances. You will get out of debt and you will be able to get back your best tool in the toolbox, your income. Once you start making your money have a purposeful plan you will feel as though you got a raise.