Consolidation loan
One payment at one rate. Only worth it if the new APR beats the blended rate you are replacing.
- Home
- Debt Relief
Every route has a cost. Here they are
Consolidation, management plans, settlement and bankruptcy set out next to each other -- including what each does to your credit and how long it stays there.
Why this is hard to compare
The problem
Debt relief is a set of trade-offs, not a menu of solutions. Consolidation keeps your credit intact and only helps if the new rate is genuinely lower. Settlement can cut the balance and damages your credit for years. Bankruptcy is the heaviest instrument and sometimes the right one. The choice depends on your numbers, and it deserves advice from a licensed professional.
What is on the table
Debt management plan
A counselling agency negotiates terms and you pay the agency. Accounts are typically closed.
Debt settlement
Pay less than owed. Expect serious credit damage, possible tax consequences and no guarantee creditors agree.
Bankruptcy
A legal process with lasting consequences and real protections. Speak to an attorney before ruling it in or out.
LendingFounder does not provide legal, tax or debt-adjustment advice. Speak to a licensed professional before choosing a route.
Ready to see the numbers?
Consolidation, management plans, settlement and bankruptcy set out next to each other -- including what each does to your credit and how long it stays there.
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