How does debt consolidation differ from declaring bankruptcy?
The objective of bankruptcy is to absolve oneself of debts altogether. This financial strategy, however, has serious and long-term drawbacks which may negatively affect your life for decades. For example, applying for life insurance, purchasing a business, buying a home, applying for a job, etc. can all be negatively affected by a prior bankruptcy. Under a debt management plan, you commit to repaying your debt obligations. Thus, one can repair bad credit, maintain a good credit rating and return to a debt free lifestyle quickly and without frustrating negative consequences.
