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jgschmit

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What's the difference between bankruptcy and debt consolidation?
I considering my options and I'm a bit confused on how each one would effect my credit.

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Bankruptcy will stay on your report for

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up to 11 years, You go to court and a judge decides what you can pay and how much to who. it will cost around $3000 depending on your situation

Debt consolidation is an effort on your part to pay them off. Basicly youre paying someone to negotiate a settlement then you pay off the debt.  This can cost around $1500 - $2500.  in addition to what the pay offs will be.

the costs of each have to be weighed against the actual amount that you owe and weather its worth it to you.

All of this you can do on your own if you educate yourself on how to negotiate and deal with your creditors. There is plenty of info here on CK to help you with it. If you are truley want to clean up your credit, it is worth the effort.  It takes time and effort to manage it but it is worth it in the long run. 

Good Luck

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