When it comes to debt most people can agree on two things: spending the money was easy, paying it back is a whole different story.
Between credit card debt (at varying interest rates on multiple cards), medical debt (doctors, hospitals, rehab, etc.), and past due utility bills and, perhaps, late mortgage payments, someone in debt is juggling many creditors. No one is patient; they want their money now. As a person in debt, you know this all too well – thanks to non-stop harassing phone calls, letters and even possibly wage garnishments.
However, bankruptcy is a big step for most people. If you don’t qualify for bankruptcy, or are hoping to find another option, it’s time to look into loan consolidation.
Just as it sounds, if you take out one loan and pay down all your other debt you will be left with one bill to pay each month. This allows you to stop missing payments and gives your credit score a chance to start healing; your numbers will rise once you stop making late or no payments on debt.
It’s important to know that a consolidation loan isn’t just available for the asking. You have to apply for the loan and get approved. This may seem impossible; how can you get another loan with bad credit? It’s a good question. You may not be able to obtain a consolidation loan. Further, a consolidation loan is not a magic pill for curing debt. The upside is smaller, more manageable monthly payments. The downside is that you will be paying more interest over a longer period of time.
Speaking with an experienced debt negotiation lawyer like Joel R. Spivack, Esq. will give you the answers to all your debt-related questions. If you don’t qualify for a consolidation loan, Mr. Spivack will advise you on other options for improving your financial health.
Some Quick Advice for Those In Debt:
- Check your credit score regularly. Hiding your head in the sand when it comes to your FICO score won’t help you. Staying informed about your credit (you can get a free credit report every 12 months – AnnualCreditReport.com) will allow you to keep the critical truth front and center. (Note, you won’t be able to see your credit score on your credit report, but there are many other ways to obtain your credit score for free.)
- Managing Credit Cards: This is a tricky area of debt management law; Mr. Spivack can best advise you. However, generally speaking, once you pay down a credit card, you can eliminate the chances of re-digging the hole, so to speak, by closing the account. On the other hand, if you know you can refrain from using your credit cards, you may want to older credit lines open – that will help your credit score.
- Consider debt settlement instead of consolidation. Again, Mr. Spivack has been helping families, like yours, for more than 25 years deal with overwhelming debt. He can help determine what the best option for your personal financial situation may be. One option is to have Mr. Spivack attempt to settle your debt by negotiating with your creditors to accept less than the amount owed. There are pros and cons to this debt solution. Learn the facts before you make a decision.
At the end of the day, unless you choose to file for Chapter 7 bankruptcy protection, your debt isn’t going to vanish. (And, even in bankruptcy, there are some debts like child support and student loans that you can’t erase.) However, really understanding your options with the assistance of a skilled attorney will allow you to make informed decisions that will eventually put you on the road to a fresh financial start.
Contact the Law Office of Joel R. Spivack today for a consultation about your debt. While there are companies out there looking to make a buck off of you with various programs, it’s important to know that most of those firms should come with a “Buyer Beware” disclaimer. Know the facts; talk to Mr. Spivack today.