Why Choose Debt Consolidation With Nationwide Debt Direct
When you are struggling financially and have accumulated debts that you just can’t repay, there are two debt management options available to you. Nationwide Debt Direct credit consolidation can help you to put all of your loans into one place, making repayments more manageable, whereas filing for bankruptcy can eliminate debts. The latter may sound like a better decision, but in the long term debt consolidation works better for many people, so let’s take a look at why you should choose debt consolidation over bankruptcy.
The Pros of Debt Consolidation
The first and most important reason why you should choose debt consolidation over filing for bankruptcy is your credit rating. As debt consolidation allows you to organize your repayments, your credit rating is relatively safe. With the right debt management plan you can continue to maintain, or even better your current standing over time, by keeping up with your consolidated repayments.
When you declare bankruptcy your debts may be wiped out completely, but your reputation and credit score will both suffer directly. Bankruptcy records are easily obtainable for potential lenders and will affect your financial credibility for anywhere between seven to ten years, and this can even affect your employment options. Although both current and potential employers are not allowed to discriminate against bankrupt employees, discretion can often find you out of a job, or at the bottom of the potential candidate list.
Lower monthly payments and interest rates
In most circumstances, consolidating your debts gives you more manageable monthly payments, but you may also be able to enjoy a lower interest rate, too. Many people find that the interest rates that are accumulated across multiple debts is the real trap when coming into financial difficulty, so paying out less each month will go a long way.
Access to existing credit
In most circumstances debt consolidation plans allow you to keep any existing credit that you may have. This means that you will still have access to your credit cards and store cards (as long as they are valid), so if you are responsible, simply having the financial cushion of a credit card for emergencies can be an attractive factor. On the adverse side, once you are declared bankrupt you will no longer have access to any existing credit and you will struggle to get awarded with personal loans as a result of the ruling, too.
Just as you are able to maintain access to existing credit, debt consolidation plans do not usually require you to relinquish any items that may be classed as ‘luxury possessions’. In most circumstances when you file for bankruptcy you will be asked to surrender nonessential possessions, such as your car, to go towards any significant repayments that need to be made on your behalf.
Although you may find that simply eliminating or restructuring certain debts while under the protection of the federal bankruptcy court is a viable option for your own circumstances, debt consolidation is definitely a worthwhile alternative for the future.
For more information on debt consolidation and debt management options to suit you, please visit Nationwide Debt Direct