In credit card consolidation is the first and the most important step towards the elimination of credit card debt. You can eliminate your debt, but will also teach you how to manage your money. Although bankruptcy can eliminate most of your debts; it will show up on your behalf for a minimum of 7 years, making it very hard for you to pay off your debts slowly. A debt consolidation loan can provide you with income tax advantages over some of the other options, like bankruptcy, since it allows you to pay off your debts slowly.