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Chambersburg, PA Debt Consolidation Attorney

Most of us are probably carrying at least some debt. Whether you have credit cards, medical bills, or loans to repay, you likely have some debt. Unfortunately, debt can quickly get out of control, often thanks to things like compounding interest. Ask our team about debt consolidation options if your debt is no longer within your control.

A debt consolidation loan might help you reign in your debt and get your finances back under your control. While taking out a loan might seem counterintuitive to reducing your debt, it can actually help you reduce monthly payments and make paying your debt more affordable. Our team can help you find a reputable debt consolidation loan with favorable interest rates, which might help you save money over time. If you do not think a debt consolidation loan is the right move, filing for bankruptcy might be a better choice, depending on your situation.

Call (215) 701-6519 and ask our debt consolidation attorneys at Young, Marr, Mallis & Associates for a free review of your case to get started.

Deciding if Debt Consolidation is Right for Your Situation in Chambersburg, PA

Debt consolidation loans can be very helpful to people with mounting debts, but they are not always right for everyone. These loans do not wipe out your debt but pull them all together under one creditor, making them easier to manage and pay each month. If you need to eliminate debt quickly, bankruptcy might be a better choice. If you want to make your debt more manageable, a consolidation loan may be right for you.

Debt consolidation loans may be great for those who have so many different debts that they are having trouble keeping up with them. While most of us are balancing utilities, rent, mortgages, credit cards, and possibly other debts, some of us have even more debt. Making sure so many different monthly payments are made on time can be hard, and a debt consolidation loan may reduce your multiple payments to just one.

You should also consider whether your debts are too large to pay. Having more than one large debt can be difficult to balance as the minimum payments for each might be more than you can afford. A debt consolidation loan may allow you to make one affordable payment instead of two or more you cannot afford. Our debt consolidation attorneys will review the loan terms to make sure your loan is fair and will help you rather than trap you under new debt.

A lot of people borrow debt consolidation loans because they can only afford monthly payments, and their interest is accruing faster than they can pay it. Again, a debt consolidation loan may make your debts easier to pay, and you might be able to afford more than the monthly minimum, allowing you to keep pace with interest rates.

What Our Chambersburg, PA Attorneys Can Do to Help You Through the Debt Consolidation Process

Debt consolidation loans are not all the same. Taking out the first loan you come across might be a bit risky, and you should get help from a lawyer with experience with bankruptcy and debt before taking out any loans. You need to make sure that the loan is fair and will adequately cover your existing debts. You also need to make sure that you will not be blindsided by high interest rates or enormous monthly minimum payments.

An experienced lawyer can help you find a loan from a reputable lender with favorable interest rates. Remember, there are many debt consolidation loan providers out there who are eager to take advantage of desperate borrowers. Many other providers are outright scams. Your lawyer can help you avoid them. Your attorney can also make sure you get good interest rates so that you will not be drowned in more debt from interest on the loan.

How Debt Consolidation Can Help You Solve Your Financial Problems in Chambersburg, PA

Debt consolidation loans may help in several ways. First, the loan may be used to wipe out your existing debts. Remember, while the loan technically pays off your debts, you still owe the loan balance, and your debts are more or less shifted rather than wiped out. Even so, many people use the loan to erase outstanding debts dragging down their credit and hindering their financial opportunities. For example, maybe you have been way behind on credit card payments. A debt consolidation loan may help you pay off your cards and avoid going into collections.

Next, the debt consolidation loan might save you money in the long run. When people have to pay multiple monthly payments, they can often only make the minimum payment. Interest often accrues faster than you can pay the loan when you only make minimum payments, and you could end up trapped under your debt for a long time. The loan allows you to consolidate everything in one place, and with good interest rates, you can make larger payments that outpace the interest rate.

Legal Options if Debt Consolidation is Not a Good Fit for Your Case in Chambersburg, PA

Debt consolidation is not always the best way to go. It can be helpful for those who have large yet somewhat manageable debts. For people like this, a debt consolidation loan makes paying debts easier and more affordable. If your debt is so enormous that there is simply no way you could ever pay it back, a consolidation loan is unlikely to fix your problem. In this scenario, filing for bankruptcy might be the better choice.

Bankruptcy might sound like a frightening prospect, but it is often more helpful than people initially think. Depending on how you file, you may be able to have some of your debts discharged, meaning you would no longer be legally required to pay them, and your other debts may be far more manageable. You have several options when filing for bankruptcy, but Chapters 7 and 13 are popular among individual petitioners.

Under Chapter 7, you may have property and assets liquidated by a bankruptcy trustee, and the proceeds are used to wipe out debts. If you would rather keep your assets, Chapter 13 allows you to pay your debts over time according to an aggressive payment plan of your own devising. If this sounds more appealing, discuss bankruptcy options with your attorney.