Recommended Products
Related Links



Informative Articles

Bad Credit Debt and Loan Consolidation Advice
Are you deep in debt and have a bad credit history? If you answered yes to that question, finding a company who offers a bad credit debt and loan consolidation service may seem like the perfect solution. It is very important however, to...

Bad Credit Debt Consolidation by
Are you afraid of bad credit? Then this article is perhaps for all of you who feel bad credit is an issue. Let this be your first step towards Consumer Credit counseling. No doubt there are numerous bad credit personal loans but hunting for...

Debt Consolidation Company and Companies
Debt consolidation companies have dotted the debt solution landscape as a result of the critical financial conditions consumers find themselves in from heavy credit card debt and other unsecured loans. With approximately 80% of Americans in debt...

Debt Help - Debt Consolidation Loans Versus Credit Counseling
Debt consolidation loans are a do-it-yourself process, whereas credit counseling helps you to make financial decisions. If you already have a financial plan, then you probably don't need the services of a credit counselor. However, if you have...

Perks and Pitfalls of Debt Consolidation
Whether you want to pursue debt consolidation in order to make a good financial situation better or to pull yourself back from the brink of bankruptcy you will want to consider the good and bad things that may result from the choices you make. ...

Can Debt Consolidation Help You Avoid a Financial Emergency?

Studies have shown that most filed bankruptcies are caused by a few specific reasons. Unexpected medical bills, divorce, and unemployment are the three biggest causes behind bankruptcy. However, these things alone do not usually lead to bankruptcy. Usually, people who are financially in jeopardy find themselves unable to avoid bankruptcy when these things occur. The signs of bankruptcy, though, are usually present long before bankruptcy actually happens. You may be vulnerable:

•If you are living paycheck to paycheck. If you are unable to put any money aside after you have paid your bills, then you are very vulnerable. If your paycheck were interrupted for any reason, such as unemployment or illness, you would not be able to afford living without borrowing. If you are living paycheck to paycheck, you would not be able to afford any debt payments or any unexpected expenses. Debt consolidation can help by helping you figure out where your money is going and by helping you afford your bills.

•If you have no savings. If you have not put any money away then any financial emergency such as unemployment or illness can leave you without money for the basics. With no savings, you would have to borrow in order to pay for the basics in case of an emergency, a risky

practice that can quickly lead to unaffordable debt.

•If you have no financial emergency plan. Many people panic if they are unemployed or are faced with divorce or sudden expenses. This can be dangerous, especially if the panic leads to non-action. Just as you have a plan in case of a fire in your home, you should have a plan for dealing with a sudden financial emergency. Your plan may include assets you can liquidate to make money or extra expenses you can cut. By acting on your plan as soon as emergency happens, you can avoid bankruptcy.

•If you have large debts. If you have lots of debts, any emergency may make you unable to meet your debt payments, leading to bankruptcy. Debt consolidation can help you avoid bankruptcy by making your debt payments affordable and by helping you pay down your debts.

About The Author

Rachel Smid is a research analyst for and now hopes to share her expertise through publishing information on consumer credit. She wants to help others in their financial planning and debt managment. For more free tips, articles and debt resources, please visit