Debt Consolidation
Buffalo ∙ Rochester ∙ Debt Consolidation ∙ Debt Reduction
What is Debt Consolidation?
Debt consolidation is the process of combining all of the debt that you owe and then repaying the debt with one monthly payment. For people who are struggling to stay on top of their bills or that have multiple creditors, debt consolidation provides a way in which debts can be resolved simply and over a short period of time.
When people choose to consolidate their debts, they often discover that they are able to save money each month. This is because they are no longer having to manage multiple accounts and are less likely to miss payments, rack up late fees or go over their credit limits. People also discover that with debt consolidation, they are less stressed because they have regained control of their finances and are no longer having to deal with pesky phone calls or letters from creditors or collections agencies.
What debt can be consolidated?
People who are looking to apply for debt consolidation can combine their unsecured debts. Unsecured debt is debt that is not tied to an item of property, such as a home or a car. Examples of unsecured debt include: credit cards, medical bills, student loans, taxes or personal loans.
Hiring a Debt Consolidation Law Firm
One thing people will have to consider before filing for debt consolidation is whether or not they will hire an attorney. While you can file for consolidation alone, it is not in your best interest as the laws surrounding debt and finance vary. In order to avoid wasting time or money, it is advised that you obtain the services of an experienced debt consolidation lawyer who understands your individual situation and can come up with appropriate strategies.
What is unsecured debt?
Unsecured debt is any debt that is not tied to an item of property. Examples of unsecured debt include credit card debt, medical bills, student loans or other types of personal loans. Unsecured debt is a form of debt that many people in the U.S. struggle with. It can lead to people having to file for bankruptcy unless debt is carefully managed.
What is secured debt?
Secured debt is a form of debt that is tied to an item of property such as a home or a vehicle. When people take out a debt consolidation loan, they may lose property that is categorized as secured debt if they default on their monthly payments.
How much will my monthly debt consolidation payment be?
The amount you will have to pay toward your debt consolidation loan will vary person-to-person. In order to get an idea of what you may have to pay if you consolidate your debt, you should speak with a knowledgeable debt consolidation lawyer, like the lawyers at the Mark E Lews Law Firm.
Can debt consolidation reduce the debt I owe?
In some cases, people are able to reduce the amount of debt they owe by 40 – 60% when they apply for debt consolidation. This amount will vary for every person and will depend upon the person’s individual circumstances. Sometimes, creditors will be willing to lower balances owed and other times, they will not be as lenient.
Will my creditors continue to call me to collect debt?
After you successfully file for debt consolidation, your creditors should no longer call you to collect debt as you will be working toward repaying them on a monthly basis. In cases where creditors continue to call, you may need an aggressive debt consolidation lawyer to intervene on your behalf.
If you are looking for answers or help related to debt consolidation, do not hesitate to contact the skilled team at the Mark E Lewis Law Firm.