Hazelton, PA Debt Consolidation Attorney

Debt is practically inescapable. Most people carry some debt, and doing so is a normal part of building up your finances. Unfortunately, debt can get out of control rather quickly, and you might need legal help if your debt is so overwhelming that you cannot pay it off. If this sounds like your situation, speak to our legal team about whether debt consolidation can help you take back control of your finances.

Debt consolidation typically involves taking out a loan to pay your debts. After that, the only debt you must worry about is the loan itself. A favorable loan with low interest rates might help you save money in the long run, and making only one monthly payment is much easier. While debt consolidation might seem like a perfect solution, it is not without its drawbacks. Remember, your debts still exist. They have just been pulled together under the loan. Also, taking out a loan can impact your credit. Speak to an attorney before you get started, as not all debt consolidation services are the same.

Call Young, Marr, Mallis & Associates at (215) 701-6519 to get a free, confidential case evaluation from our debt consolidation attorneys.

What is Debt Consolidation and Can it Help You in Hazleton, PA?

Debt consolidation involves combining all your debts so that you can make one monthly payment rather than multiple payments. In many cases, this involves taking out a loan to pay off all your existing debt. After that, you only have to worry about repaying the loan. Depending on how you go about it, debt consolidation can make managing your debt easier and more affordable.

First, debt consolidation can help you avoid late fees or penalties for missing a payment. If you have numerous debts to keep track of, it might be too easy to forget to make a payment. Suddenly, you are hit with late fees, or worse, your debt might go into collection, which can damage your credit score. Debt consolidation can reduce your payments to just one monthly payment for one loan instead of multiple payments for multiple debts. As such, people who go through debt consolidation often have an easier time avoiding making late payments and incurring penalties.

For many, the main goal of debt consolidation is to help debtors save money by consolidating debts under a single loan with a low interest rate. This way, you might actually spend less money over time because your interest rate is lower than if you were paying off multiple debts. If you cannot get a good interest rate on a debt consolidation loan, it might not be the best choice.

Whether or not debt consolidation is right for you depends on your unique situation. Speak to our debt consolidation lawyers about your debts, income, and overall financial situation.

Pros and Cons of Debt Consolidation in Hazleton, PA

Debt consolidation can greatly help some people, but it is not without a few risks. Understanding how debt consolidation can help, but also how it might be risky, is necessary before you make any financial decisions. If the good outweighs the bad, we can help you get started on your debt consolidation journey. Otherwise, we can help you explore other options and find one that works for you.

A few of the pros of debt consolidation include reduced monthly payments, better interest rates, and the elimination of other debts. Having only one monthly payment instead of multiple payments can be a significant relief, especially if you have numerous debts to keep track of. If the interest rate on your loan is low, you might even be able to pay back your debts faster. Finally, the debt consolidation loan wipes out your other debts. For some, this means the elimination of longstanding debts they have had trouble paying off.

It is important that you are also aware of the potential disadvantages or drawbacks of debt consolidation loans. First, when you take out a loan like this, the lender will check your credit, leading to a hard inquiry on your credit report, which might negatively impact your credit score. Additionally, the loan will be a new account, which might reduce the average age of your accounts, lowering your score. Finally, your debts are wiped out, but you still must pay the money you owe. If you are in an unstable financial position, taking out a loan to consolidate debts might not solve anything.

Why You Should Speak to an Attorney Before Seeking Debt Consolidation in Hazleton, PA

An attorney with experience working with people seeking debt consolidation can be a massive help. Numerous debt consolidation services exist, but not all are helpful. Your lawyer can help you sort through your options and pick a path that best suits your needs while minimizing other financial and legal risks.

Some debt consolidation services convince people to take out a loan to consolidate debts, but they end up trapped under the loan. Now, they are in debt to the consolidation service, and the service makes more and more money. The whole point of the loan is to make it easier to repay your debts. If the loan has sky-high interest rates, you might be in debt for longer and pay more money in the long run.

Your lawyer can help you decide if a debt consolidation loan is not the right move for you. If your debts are small enough, you might need to reorganize your finances and develop smarter spending and saving habits. If your debts are too large, you might still be trapped in debt for a long time, but with a different loan. An attorney with experience with debt consolidation and bankruptcy can advise you on how to move forward.

Contact Our Hazleton, PA Debt Consolidation Lawyers for Assistance

Call Young, Marr, Mallis & Associates at (215) 701-6519 to get a free, confidential case evaluation from our debt consolidation attorneys.