IS DEBT CONSOLIDATION RIGHT FOR YOU?
VIRGINIA BEACH DEBT CONSOLIDATION ATTORNEY
When you are struggling and trying to get out from under mounting debt, there are different routes you can take. One of them is debt consolidation. This is a strategy where you obtain a loan for the purpose of paying off your creditors. Once that is done, you will be paying off the consolidation loan. Sometimes a person is better off filing for bankruptcy, but that is not always the best option. Bankruptcy offers debt relief, while debt consolidation might be a better choice. If you are facing too much debt and you cannot see how to get out from under it, you should contact an attorney in Virginia Beach who understands these issues, including alternatives to bankruptcy and who can guide you to your best option for your debt problems.
DEBT CONSOLIDATION OPTIONS
There are many companies out there that offer debt consolidation. But beware – some of them are scams. Some are legitimate but will charge you very high fees without successfully delivering adequate results. If you are in too much debt at least partly because you have been continuously late with payments, thus increasing your interest rate and the amount owed, you may end up with the same problem with a debt consolidation loan. It depends on your personal situation whether this is a good option for you.
An important factor to consider is what is the interest rate on the new loan is compared to the interest rate on your outstanding loans. If the length of time to pay off the consolidated loan is too long, the interest rates could cost you even more than if you hadn't taken out the loan.
Usually, the only debts you can pay off with a consolidated loan are unsecured debts. Credit cards, especially those with high interest rates, are the most common debts paid off this way. Other common unsecured debts include medical bills, cash advances, payday loans, and student loans. As you don't need any collateral for this type of loan, you need to have a good credit rating in order to get a good interest rate. This lower interest rate is what could make this a good option for you, based upon your situation.
Another option is a home equity loan to pay off credit cards. The difference is that your home is collateral for the loan. Often, the interest rate is lower and you can pay off the loan more quickly, but if you default, you stand the risk of losing your home. Any decision so serious should be reviewed by a legal professional, so that you do not put yourself at risk. Yet another option is a debt management program. If you don't have good credit and you don't want to put your home up for collateral, this might be an alternative. Basically, the agency administering the program negotiates with and pays your creditors, while you only make one payment to the agency. Watch out for scams – they are out there. If you want a trusted attorney to manage the process, our firm can help.
WHY YOU NEED A DEBT RELIEF LAWYER
Every person trying to get out of debt is a unique case. Having unmanageable debt is very stressful and emotional, making it even harder to clearly know what to do. If you make an error in your decision, it can cost you even more.
Don't let this happen to you. The attorneys at the David McCormick Law Group understand what's at stake. We will provide you with a free case evaluation, where we carefully evaluate your unique financial circumstances, and recommend your best course of action. We are passionate about helping you out of the financial difficulties you are in, and are dedicated to helping you employ the right solution – the one that gives you the most relief. Contact us to go over all your options. We are extremely skilled in helping our clients get out of debt and getting a fresh start.