Do you know about debt consolidation lawyers? An accident, medical expense, or job loss can lead to financial disaster. More bills arrive every day, some past due months or sold to collection agencies. You’re struggling to keep up with your mortgage and utility bills because you’re trying to pay off credit cards or medical bills, or you find yourself in a house you can no longer afford.
If this sounds like you, or you are experiencing significant financial hardship, schedule a free consultation with a debt consolidation attorney at Law today.
What is Debt Consolidation?
In simple words, debt consolidation is a loan that allows you to pay off other debts you have. This way, you would have a single debt to pay instead of having several debts separated from each other, bringing with it both advantages and disadvantages depending on the way you decide to consolidate your debts.
Due to the above, it is necessary to know more about the subject so as not to proceed to consolidate debts carelessly. You will prevent your financial situation from worsening and get out of all those financial problems you have with a simple business maneuver. Have you ever said, “ I need to consolidate my debts ”? Well, this information will be useful to you.
Considerations for Consolidating Your Debts
Before consolidating debts, you must assess whether it is better for you to take advantage of Law 25/2015, which allows you to cancel all debts without paying them if you meet the legal requirements. To know the requirements you can contact us. If you cannot benefit from law 25/2015, let’s see how you can consolidate your debts.
If you are seriously thinking about carrying out debt consolidation, the first thing you should take into account is the amount of debt you have accumulated to date. You can do this through a debt inventory, which you can do by taking into account the following steps:
- Check your credit score and the relationship between debts and income to determine the situation you are in.
- Make a list of your accumulated credit card and loan balances, including interest rates and monthly payments. Generally speaking, the most expensive debts are those that are consolidated first, with this place being occupied by credit card debts.
- Calculate the total of the monthly payments and the total of the outstanding balances in order to have that inventory of debts that you need.
With debts well-oriented, the next thing to do would be a thorough analysis of the options available to consolidate all debts. It is an easier task to do knowing how much you owe per month and how many debts exist in your possession. The key here is to truly consider the options available when it comes to loans. Personal loans are the most suitable option due to their low guarantees.
Once all this has been mentioned, you can proceed to list the steps to consolidate a debt :
- Find a bank that is willing to offer the loan solution you need to consolidate your debts.
- Accept the offer that best suits you and that adapts to your ability to pay.
- Identify those data that you can do without and thus have sufficient resources to pay this new debt that you consolidate. Now to pay and get out of debt!
In addition to everything mentioned above, you can add the following points if you have truly considered that debt consolidation is the best option for you:
• You will not be eliminating debt by choosing to consolidate them. Instead, what you will be doing is structuring your debts rather than just eliminating them.
• Always take into consideration the total cost of the loan to be acquired, understanding that a loan with a longer term could well have a lower monthly payment although it may also increase the amount to be paid while the loan is still in force.
• Maintain good credit habits, and it is essential that you create a budget to help control these future expenses.
• Carefully review alternative methods for paying your debt that have nothing to do with consolidation. Keep in mind that consolidating your debts is not the only strategy you can follow to be able to get out of all that you have to pay.
• Consider credit contracts with a fixed rate, since this way, the amount you are to pay will not increase. Likewise, carefully investigate the financial institution you go to to request debt consolidation.
• Choose to request the services of a nonprofit credit counselor, who may be the professional to help you make better use of credit card debt consolidation (an aspect that will be touched on shortly). Likewise, it is advisable to be wary of those business companies that charge in advance.
How a lawyer specializing in debt reunification can help you?
You may be afraid that there are only two solutions to your current financial problems: keep trying to pay what you can and face wage garnishment and even foreclosure, or declare bankruptcy and lose everything.
While filing for bankruptcy is the right option in some cases, our clients often emerge with minimal or no property loss, plus there are several avenues we can explore to help you get out of debt more easily and quickly.
Short Sale of Your House
If you have fallen behind on your mortgage payment, the bank may be considering beginning procedimientos de ejecución hipotecaria. However, before this happens, we can explore a short sale.
When the buyer receives an offer, the mortgage lender must approve the offer before the home sale can proceed, but once completed, they will forgive the remaining balance. Although this affects your credit, the financial consequences are much less severe than foreclosure.
When debt stems from medical bills, credit card bills, or even private student loans, our debt settlement attorney can intervene on your behalf. Often, we can negotiate lower payments or a lump sum settlement that is less than what you owe, allowing you to get out from under high payments and high-interest rates.
In other cases, we can consolidate your debts into a single monthly payment so that all of your creditors are satisfied. This option has the following advantages:
• A monthly payment that is usually less than the sum of your current payments;
• All creditors and judgments are satisfied;
• No more wage garnishments, debt collection letters, and harassing phone calls.
File for Bankruptcy
Although many people resist the idea of bankruptcy, in some cases it is the best way to wipe the slate clean on unsecured debts, such as medical bills and credit cards.
Quiebra del capítulo 7 liquidates your debts and assets, selling non-exempt valuables to pay your creditors, and the remainder of your eligible debt is paid off in less than six months. This option is not available to everyone due to strict income guidelines.
Quiebra del capítulo 13 restructures your debt, allowing you to pay a monthly payment based on your disposable income for three to five years. At the end of the payment period, your eligible debts are paid off. This method can be used to get rid of a second mortgage on your home without having to sell it.
Tax debt is a problem facing thousands of residents, but there are ways to address crippling tax problems. Older debts for taxes owed can be discharged through bankruptcy. However, there are also payment plans and settlement options available. We can help you make the right decisions to avoid legal problems or have a tax lien on your property.
Attorneys with Experience in Debt Consolidation
If you need to avoid foreclosure through a debt consolidation lawyer, our attorneys can help you. We offer comprehensive mortgage debt consolidation services by our experienced attorneys.
More than 22 years of experience: More than a decade of experience handling complex Debt Consolidation files.
Free initial consultation: Get real answers to your questions about debt consolidation, so you can make fully informed decisions.
Choose Your Debt Consolidation Lawyer
We have been helping people get out of debt, avoid foreclosure, and move forward with confidence since 1998 and have over a decade of experience in complicated debt consolidation filings. You will sit down with a debt consolidation lawyer who will review your debts, income, and other important information.
Working with you, we will create a strategy that will give you the best overall result. In some cases, the solution is debt consolidation or selling your home in a short sale, while other circumstances are best resolved by filing for bankruptcy and having debts discharged.
Our law firm always has our client’s best interests in mind and will work on your behalf to ensure the best option, we offer affordable payment options so you can get the assistance you need when you need it most.
Advantages and Disadvantages of debt consolidation
By making good use of debt consolidation (something you already know how to do with what was previously mentioned), you can obtain great advantages or benefits that will make your life much easier for the sake of debt:
• You will be able to have control of a single debt instead of being on the lookout for 3 or 4 different debts.
• It is possible that you will be able to save money for the future, as long as the interest rate on this new debt that you consolidate is lower than the sum of the interest rates on your separate debts.
• You have the possibility of negotiating with the institution that offers the loan to consolidate debts and thus obtain more and better benefits.
• It will be much easier for you to make a monthly budget that will allow you to know in more detail your ability to pay debts in general.
As a countermeasure, the disadvantages of consolidating your debts can be summarized as follows:
• You still have a debt to pay and, if you don’t, you would get into much more financial trouble than if you had just had your debts separately (certain conditions apply).
• Consolidating debts requires prior research and financial analysis which very few like to do.
The key to being approved for a good debt consolidation option is that your credit history is impeccable. In this way, you will also be able to opt for more and better loans or credits for the future. Therefore, focusing on everything already mentioned, what are you waiting for to stop saying “ I need to consolidate my debts ” and start doing it?
If the bank does not grant you consolidation, all is not lost. As we have told you, there is a solution thanks to the legal process of canceling debts without paying them that will allow you to get rid of all your debt without paying it. But to do this you will have to meet a series of requirements. Before opting for debt consolidation, ask us for information on the cancellation process.