What's better: a Debt Consolidation Loan or Personal Bankruptcy?

There is no obvious answer to this question. It depends on your situation.

If you have a good income, good credit, and a manageable amount of debts, a debt consolidation loan is probably your best option. You can get a credit card debt consolidation loan to reduce the interest rate you are paying on your credit cards, or you could get a home equity debt consolidation loan to use the equity in your home to consolidate your other debts. It may even be possible to refinance a student loan.

Even if you have bad credit, some lenders will consider you for a bad credit debt consolidation loan.

However, if your credit is very bad, a debt consolidation loan may not be possible. In that case, personal bankruptcy may be your only option. Our advice: talk to your bank or mortgage lender about a debt consolidation loan. If they cannot do it, then consider, as a last resort, filing personal bankruptcy.