Why Choose Debt Relief Consolidation over Bankruptcy

Bankruptcy is not uncommon today and incurring enough debt to get you to that point is far too easy. However, bankruptcy is not the perfect solution to your financial problems when there are less damaging alternatives available. Debt consolidation programs and debt management services are the better options and those which should be pursued sooner rather than later. Such services are available to both individual consumers and businesses dealing with financial trouble.

Basically, these companies are designed to help the debtor recover from poor money management as efficiently as possible. The existing credit cards or other debt loans are consolidated into one loan helping the debtor get on a solid financial footing in the least amount of time. Further, the debt is repaid on a lower interest rate and with less hassle than paying several creditors each month.

Initiating debt relief consolidation services is not hard. It is much easier than the bankruptcy process. You simply locate a reliable company and speak with a consultant who will help guide you through the process. The consultant will assess your situation and determine your eligibility, after which time he or she will explain the details of your plan including your monthly budget and debt expenses. In addition, many companies also offer other consumer debt repair services along with consolidation services, including credit repair and counseling.

Business debt consolidation plans are similar to those of individual consumers and are often developed by the financial advisors for the business. When implementing a business consolidation plan, it is important to evaluate the necessities of your business and any potential cutbacks. You may want to discuss the company’s financial situation with the staff so that they are aware of the potential for downsizing or cutbacks. Some staff may voluntarily leave the company which will have a positive impact on the consolidation plan, or those remaining may simply contribute to the focus on saving and reducing expenses. If employees do voluntarily leave, though, do not look to replacement as your only staff solution. Offering additional hours or responsibilities in exchange for a small raise to those remaining staff members could save money and further the success of the consolidation plan.