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Reading, PA Debt Consolidation Attorney

Most people have debt they need to pay back, but too many debts might weigh them down. To make payments more manageable, talk to our team about debt consolidation.

If you have numerous debts you cannot keep up with, you might want to consider using debt consolidation to solve your financial problems. You might be making only minimum payments while interest continues to pile up. By reconsolidating your debt, we can help you take out a single loan to pay your debts. This way, you only have to make one monthly payment. We can also help you make sure that the terms and conditions of your loan are more favorable. For some, debt consolidation might not be the right solution to their financial woes. In that case, ask our team about how bankruptcy might work for you. While bankruptcy sounds scary, it might help you get a firm grasp on your debts and keep your home.

Our debt consolidation lawyers at Young, Marr, Mallis & Associates can offer a free, private case review if you call us at (215) 701-6519.

How Do I Know if I Need a Debt Consolidation Lawyer in Reading, PA?

Debt consolidation can be a great tool for people who are financially struggling. Perhaps you have overextended your finances or encountered unexpected costs, like medical bills for a sudden illness. Talk to our legal team about whether debt consolidation can help you.

You might want to consider debt consolidation if you have numerous debts that you cannot keep up with. Maybe you have so many different debts that you have to pick and choose which ones you pay each month. Maybe you are paying all of them but only the minimum payments, and interest continues to pile up. Debt consolidation can help you combine all these payments into a single monthly payment, which might be far easier to manage.

You should also consider debt consolidation if you are at serious risk of falling behind on important debts, like your mortgage. If you miss too many mortgage payments, you risk entering foreclosure, and you could potentially lose your home. If this sounds like you, contact an attorney right away.

How Debt Consolidation Works in Reading, PA

Debt consolidation often involves taking out a new loan to pay many of your current debts. While taking out more debts to tackle existing debts might seem counterintuitive, it might just be the solution you are looking for.

Often, when our debt consolidation attorneys help someone open a new line of credit to cover all or some of their debts, they use the loan to wipe out their other debts. Now, they only have to pay back one debt instead of many.

In addition, the new line of credit should have more favorable terms than your existing debts and liens of credit. For example, you might have numerous debts with high interest rates. By opening a new line of credit to pay for everything, you wipe those debts out. Now, you have to make payments on only a single debt at a better interest rate, so you save money over time. Many people are more capable of repaying their debt consolidation loan. Your attorney can negotiate with the new creditor to keep your interest rates low and make the terms of the loan as favorable as possible.

Deciding Between Debt Consolidation and Bankruptcy in Reading, PA

Debt consolidation can be a great help for some, but there might be better solutions for others. Bankruptcy might be better suited for those with significant debts they cannot pay. Your attorney can help you weigh the pros and cons of each option.

While debt consolidation might help you get control over your debt and even provide better interest rates to save you money, you still have to worry about paying back the loan. Your debts do not disappear. They are simply lumped together under a single loan. The upside is that debt consolidation might not have as big of an impact on your credit as bankruptcy, although your credit rating might take a hit.

Bankruptcy may be helpful as it allows many petitioners to wipe out some of their debts completely. The bankruptcy court may discharge various debts, and you would no longer be liable for paying them. If enough of your debts are discharged, you may obtain a completely fresh financial start. However, bankruptcy often takes a big toll on a person’s credit, and it might take years to rebuild.

How Debt Consolidation and Bankruptcy in Reading, PA Might Impact Your Credit

When talking to an attorney about debt consolidation, you should also discuss the possibility of filing for bankruptcy. Depending on your situation, one option might be better than the other. Still, both might have a somewhat negative impact on your credit score.

Generally, if someone needs debt consolidation or is considering bankruptcy, their credit is probably not in good shape to begin with. However, people often hesitate to take these kinds of legal actions because they worry about making their credit even worse.

Talk to your attorney about your credit score and any future financial plans you might have. If your credit takes a hit, banks and other creditors might be less willing to work with you. This might make it very hard to secure loans to buy a home, go to school, or start a business. You might also have difficulty opening new credit cards or other lines of credit. When beginning debt consolidation or bankruptcy, you might need to put future financial plans on hold until your debts are squared away and you can begin rebuilding your credit.