father is worried about their debtsIf your overwhelming debt situation is making it hard for you live normally or sleep at night, it easy to think that you’re hopeless. While there are no magic spells that can make all your debts go away, there are a few relief options that can keep you from sinking. You may choose between bankruptcy and debt consolidation to manage the situation and take control to your financial life once again.

Both options have pros and cons, so it’s best to examine them first. Keep in mind that whatever debt relief option you choose, you need to focus and discipline yourself to get your life and finances back on track.


While declaring bankruptcy seems like the worst move, it can offer you a fresh financial start. There are also cases where bankruptcy is the only remedy available if you’re drowning in debts. This is especially true if creditors are pestering and harassing you. Barski Law Firm PLC and other debt relief lawyers in Scottsdale, AZ note that it stops most debt collection activities and eliminate certain debts, such as credit card and unsecured debts.

Do note that bankruptcy can appear on your credit report, but the effect on your score will still depend on several factors. These include the way you rebuild your credit rating and the length of your bankruptcy case. If you are considering taking the bankruptcy route, talk to a financial planner first. If you really think that it’s the right move, see a debt relief or a bankruptcy lawyer.

Debt Consolidation

This involves taking out a new loan to combine all your debts into one. This is usually done to reduce the interest rate you owe and streamline your debt situation. Debt consolidation can be completed with the help of a bank, credit union, or a debt consolidation company. It usually has a minimal effect on your credit score, but you should know that your debt is not reduced.

With debt consolidation, you can’t eliminate certain debts and you still need to pay the same amount you owe. That is why you need to be disciplined on how you handle your finances. You should also note that lower rates and smaller payments don’t always mean you can comfortably afford the payment. You must consider all the risks carefully before deciding to consolidate your debts.

There are no easy and quick fixes to managing overwhelming debts. When choosing between debt consolidation and bankruptcy, it’s best to learn more about them and weigh their risks and benefits. If you decide to go with bankruptcy, get help from an experienced bankruptcy attorney.