Debunking Debt Consolidation: An Insider’s Perspective
As a Bankruptcy Attorney, Here’s What I’ve Observed
As a bankruptcy attorney with years of experience in the field, I’ve had the opportunity to work with countless individuals struggling with debt. In my time, I’ve seen more than 15,000 consultations and not once have I encountered a debt consolidator that I would consider honest or efficient.
The Dark Side of Debt Consolidation
It’s a common misconception that debt consolidation is the answer to financial troubles. However, after working with clients who’ve gone down this route, I can tell you that it’s not all it’s cracked up to be. Far too often, I’ve seen individuals who’ve wasted thousands of dollars on debt consolidation services, only to find that they’re no better off than when they started and significantly poorer.
One of the biggest problems with debt consolidation is that these companies often fail to mention the fact that the amount you get discounted through their services is taxable. This means that come tax season, you’ll be hit with a bill from the IRS that you may not have been expecting. And to make matters worse, you can still be sued while you’re in a consolidation plan.
Bankruptcy: A Viable Option
Contrary to what debt consolidation companies would have you believe, your credit will actually recover faster from a bankruptcy than from a debt consolidation plan. While bankruptcy can be a daunting thought, it may be the better option in the long run for getting you back on track financially.
The Bottom Line
In conclusion, debt consolidation may seem like an easy solution, but the hidden costs and potential consequences far outweigh any perceived benefits. Before making a decision, it’s important to consider all of your options and understand the true cost of debt consolidation. As a bankruptcy attorney, I’ve seen the impact of this choice firsthand and I strongly encourage individuals to weigh their options carefully.
I’m bankruptcy attorney Eric Ridley. Please set up your free consultation with me, before losing more money to these companies. Click here