Debt consolidation has always been beneficial over bankruptcy as far as creditor’s interest is concerned. Whereas in Chapter 7 or Chapter 13 bankruptcy, creditors get nothing or very little from the debtor, the debt consolidation system shows positive and systematic money management in favor of them. Debt consolidation beneficial for both: Debt consolidation in turn could be extremely advantageous for consumers as the consolidation company would negotiate the reduced interest rate, lower monthly payment, reduced balance, cut off late fees and finally set up the time to be debt free. So in the long run the consumers can save large amount of money. Secured loans like car loans or mortgage loans don’t come under consolidation. Unsecured loans like bank...
