I prefer bankruptcy over debt consolidation

[AlFromLA]

I think debt consolidation is a scam in most cases. Most of the debt consolidation companies are directly affiliated with the creditcard companies, in effort to prevent creditcard companies to declare bankcrupy.

The best way to get out of debt is to declare bankruptcy. The say that because debt consolidation usually end up hurting your credit, but you end up paying the principle on what you owe anyway. Sure they reduce your APR but they charge you a fee for their monthly service, AND they restrict you from opening credit cards.

Well if my credit is going to damage, and if I can't open any credit cards, then why not declaring bankruptcy and get my whole debt erased and start fresh?

I would like to hear your openion.

[Nicholas_B]

Hi,

I am no expert and can only give you my opinion. Of course it does depend on the individual and what is best for them. I would say there is an ethical stance on this subject as you have taken the credit and used the finances and therefore are in this position. It may not seem creditable just to wipe it off and start again (imagine if everyone did that, we would forever be in a recession) and remember there are negative associations with bankruptcy and can take years to rebuild yourself from bankruptcy. For the best advice contact a specialist.