Living with tight finances is one thing, but when you can’t afford to pay your bills or are constantly harassed by creditors, it’s time to look into making changes. You have many options that you can discuss with your attorney, but one of them that may help is called debt consolidation.
Debt consolidation is one way to reduce what you owe while also avoiding bankruptcy. If you’re not to the point where bankruptcy is the option you want to choose, then trying debt consolidation first may be a good idea. With debt consolidation, your attorney will help you negotiate down high credit card debts and balances, interest rates and other factors that affect you. Then, they will help you consolidate those debts into a single monthly payment when possible. By doing this, you can reduce what you owe overall, reduce interest over time and get ahead on your debts.
Debt consolidation is a good idea if you can consolidate the debts you have into payments that are affordable and an amount that you can pay down over time. On the other hand, if you consolidate those debts and still can’t meet the monthly payments, then it may be better to consider bankruptcy. With either Chapter 7 or Chapter 13 bankruptcy, you can reduce or eliminate qualified debts, so you can get back on track financially.
Your attorney would be happy to talk to you about the different options that are open to you. Our website has more on the steps to take if you’re struggling with debt and want to find a way to work toward a more secure financial future.