Debt Consolidation

Buyer beware. Debt consolidation companies advertise themselves as non-profit companies that want to help you. This tends to give the consumer the impression that they are government agencies when in fact they are businesses. non-profit simply means the company does not seek to earn a profit. However, United Way, also a non-profit organization pays its CEO several million each year. How do you feel about your donations going to finance this ridiculous salary?

In addition, debt consolidation DOES show up on your credit report. While it is not bankrupcy it is considered a mild form of bankruptcy reorganization by many merchants. Therefore, before you consider a debt consolidation you should try to correct the problem yourself. Nevertheless, debt consolidation is a great way for many to put their finances back on track and is certainly much better than filing for bankruptcy, which will be much more difficult to do in a few months anyway. Most likely, consumer bankruptcy or chapter 11 will become a thing of the past and debt consolidation will be the only means of financial restructuring.