Buying a home and consolidating debt
While you’re in the program, you won’t be able to use your credit cards or open new ones.
If you’re financially drowning, of course you can declare bankruptcy.
The problem is that bankruptcy is a serious derogatory mark on your credit.
Even if you fall in a low tax bracket, you could face a huge bill to the IRS.
The debt settlement process involves hard-core, long term debt collection attempts by your creditors, and serious credit score damage that will last for many years.
Debt consolidation makes sense for people who want to make one payment each month instead of several, and for those who can lower the amount of interest they pay by taking the new loan.