Bankruptcy is the final and ultimate last resort method of debt relief. This method should only be pulled out as a final card when you have your back against the wall and have nothing more to offer to help get out of your sticky financial situation. Repercussions of bankruptcy could include negative long lasting impacts and significant damages to your credit that stays with you for years on end. So before you look at this option, you have to exhaust all resources and methods to get our of debt.
It may sound experimental and a big waste of time. However with the right research you can answer your own question of which is better between the battle of bankruptcy vs. debt consolidation or debt consolidation vs. Debt settlement.
Debt settlement is a popular option among people who quickly want to get rid of debt. It is a method of debt elimination that involves negotiating with creditors for better terms on your debts. What this option could do for you is that they can ask for debt forgiveness, a lower payoff rate or a lower balance that you could realistically pay. Debt settlement may help you convince creitors to give you a considerable reduction in interest or monthly payments. These terms that this solution may offer could include any combination of these elements, or all of them.
Debt consolidation is a similar method that involves taking out a single loan to repay others. The up side to this consolidation method is that it gives you a longer payment period and only a single low monthly payment to look out for each month. Debt consolidation is most effective in paying off credit card debts. In Debt consolidation may be eliminated completely if done correctly.
Whatever method you choose, you have to remember that you have the ultimate power in this battle. Your choice will make all the difference in your financial life. Do it right now and do it right.