Tips for Developing a Successfull Debt Consolidation Plan (cont.)
Contributed by Melanie Vannuys
These companies monitor your credit rating periodically - if you've had late payments with them or ANY other of your creditors, they will know and there goes the interest rates! Even if you're never late with one particular company, if they see that you are with another, you'll be penalized for it.
If you're planning to search for a plan that fits your needs, understand that it will take time. Start with your local telephone book and then move to the Internet. Compare apples to apples and make sure what you see is what you get.
Is A Debt Consolidation Plan A Better Alternative To Bankruptcy?
The myth of bankruptcy has been debunked by several financial experts. For years, consumers were told that they would lose their house, car and personal belongings. This is not the case. While it's true that bankruptcy will stay on your credit score for seven to ten years, so will negative credit. However, a debt consolidation plan is probably less costly than hiring an attorney to handle your bankruptcy case. Either option, debt consolidation or bankruptcy, can lower your credit score and you'll be much better off if you go with the lesser of the two evils - debt consolidation.
