night-crew, my question is Consolidating or Bankruptcy I'm way beyond in debt for a single person that works 24 to 32 hrs if that.Cut back on hours full time first then part time comes second. Bad for me been out on disability since Dec1,08 an still the Dr. hasn't release me due to surgery on my shoulder. So please help me which way too go. Hired a Lawyer to start the Bankruptcy, alot of money. It's hard, an if I consolidate were do I go? A lot of them say their a non-profit org. butt end up paying more. HELP!!!!! Deep in Debt.

Hi WinkingSkunk,

I'd need a titch more information to give your question a better answer...please do follow up if you care to. I am assuming you "don't/can't" use your current cards because they are maxed out at sky-high rates of interest. If that right?

I am not a credit repair expert, so the opinions of other gurus and informed readers would be welcome on this point. I tend to direct people to creditboards.com and creditnet.com for background research.

Consolidation can be an option in that situation. However, you'll want to be careful who you choose, as many outfits are for-profit enterprises with sketchy track records.

In any case, I would use this option only as a last resort. . A better option is to find a way to get some additional cash to bring those balances down: savings, salary, parents, et cetera. If the balances are yours, your credit is probably in bad shape. If it were not, or if your spouse's were not, a balance transfer to a card offering a 0% rate might be one way to speed things along (provided you DID NOT use the card for new spending).

Consolidation exposes your home to unnecessary risk if that's the path you are thinking about. Credit Cards are unsecured debt. This means you have not given the companies any collateral.

Putting debt on mortgage places your home at risk of foreclosure should you not be able to pay the higher payment.

More: http://www.moneyteachers.org/credit.htm