 TITLE: How Does Filing Bankruptcy Affect Your Credit? CONTENT: Alternatives to Bankruptcy\n--------------------------\nWhile bankruptcy can provide some relief from debt, it's not always the best option. Here are a few alternatives to consider that may not have as big of an impact on your credit score.\n### Debt Consolidation\nIf you're in a situation where you're struggling with your debt but are still capable of making payments, a debt consolidation loan may help. With good or excellent credit, you may be able to qualify for a lower interest rate on the new loan than what you're currently paying on your debt.\n### Debt Management Plan\nA debt management plan allows you to pay off your debts over three or five years through a [credit counseling agency]('). Your credit counselor will collect payments for your unsecured debts and make payments to your creditors on your behalf.\nThey can also potentially reduce your monthly payments and interest rates, making the process more affordable. You'll typically need to pay a modest upfront fee and an ongoing monthly fee throughout your plan's term.\nConsider a debt management plan if your credit situation isn't the right fit for debt consolidation, but you want to avoid alternatives with more credit consequences.\n### Debt Settlement\nDebt settlement is the process of negotiating with your lenders to pay less than what you owe. You'll typically go through a debt settlement company, which collects payments from you until you have enough for the company to start the negotiations on your behalf.\nDuring this time, you'll be advised not to make your regular monthly payments on your loans and credit cards. As a result, debt settlement can damage your credit report significantly, though it's typically not as severe as bankruptcy.\nDebt settlement companies typically charge upfront and ongoing fees throughout the process, which can get expensive. Debt settlement can be risky and expensive, and it isn't guaranteed to work. If considered at all, it should only be as a final step before bankruptcy. END