Although debt consolidation is an alternative to declaring bankruptcy, it does not address many of the core problems that lead to the accumulation of debt in the first place, like overspending. Many times, people who consolidate their debt end up right back where they started.
Often, people in debt don’t realize their expenses are greater than their income. Debt consolidation can be a viable solution if debtors stop using their credit cards, save for emergencies, and create and stick to a budget. However, if it would take more than five years to pay off the debt without debt consolidation, it’s best to consult an attorney to discuss bankruptcy options.