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How Does Debt Relief Without Bankruptcy Affect Your Credit Rating?

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Summary: Debt relief without bankruptcy is important because bankruptcy puts a black mark on personal credit. Use debt consolidation instead of declaring bankruptcy with help from a business analyst in this free video on financial planning and debt management.

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By Terry Kuykendall
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Terry Kuykendall is currently a budget analyst for the military in Washington. She is an accountant who has worked at firms helping people deal with personal and business debt.read more

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Video Transcript

"Debt relief without bankruptcy would be the way to go. And that would be your debt consolidation loan. It'll take all your loans, your credit cards. Put it into one low monthly payment at a lower interest rate and that will get you out of debt without filing bankruptcy. If you end up having to file bankruptcy, that ends up not costing you any money out of pocket, other than the cost of a bankruptcy, but it's... from the federal government and it puts a black mark on your credit. You're virtually not going to be able to obtain any credit in the next seven to ten years to do anything: buy a house. So the bankruptcy is not an option. They best way to do... to get out of debt without bankruptcy would be the debt consolidation."

eHow Article: How Does Debt Relief Without Bankruptcy Affect Your Credit Rating?

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