Home » Bankruptcy Law » Pennsylvania Bankruptcy Lawyers » Horsham, PA Bankruptcy Attorney » Horsham, PA Debt Consolidation Attorney

Horsham, PA Debt Consolidation Attorney

Most people carry some debt. Some of us carry very little debt, while others carry much more. If you have made large purchases, like a home or vehicle, or taken out loans for school or to start a business, you might be carrying significant debt. If you find yourself unable to keep up with multiple monthly payments, you should speak to our attorney about debt consolidation options.

Debt consolidation usually involves taking out a loan and using it to wipe out your debts. After that, you only have to worry about paying back your debt consolidation loan instead of paying back your numerous debts. For many, this reduces their obligations to a single monthly payment. If you can get a low interest rate on your debt consolidation loan, you might save money in the long term. Debt consolidation can be helpful for many, but might not be the best option for some. In that case, talk to our team about how bankruptcy might help you get out from under your debt.

Call our team at Young, Marr, Mallis & Associates at (215) 701-6519 for a free case evaluation with our debt consolidation attorneys.

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

Having debt is not unusual. Most people have at least some debt, and it is not a problem as long as you can afford to keep up with monthly payments. However, debt can quickly get out of hand despite our best efforts. If you have multiple debts to numerous creditors, making all the necessary monthly payments might be difficult or downright unaffordable. If this sounds like your current situation, a debt consolidation loan may work for you.

Debt consolidation loans may bring all your debts under a single umbrella. It usually works by borrowing a new loan large enough to cover all your debts. Next, you use the loan to pay all your debts, so they are totally wiped out. Now, you must repay only the debt consolidation loan instead of numerous other debts from various creditors. This means you must make a single monthly payment rather than multiple payments.

If our debt consolidation lawyers help you get a loan with a lower interest rate, you might save money in the long term. This might be especially important for people whose other debts have higher interest rates that they cannot keep up with. At the end of the day, a debt consolidation loan might make your payments more affordable and possibly less expensive over time.

Why Someone Might Consider Debt Consolidation in Horsham, PA

Debt is a common problem with many different solutions. No two people are exactly alike, and different people might require different debt solutions. If you are unsure whether debt consolidation is the best option, consider the following factors.

First, think about how many different debts you are currently carrying. You might have debts related to credit cards, a mortgage, medical bills, student loans, utilities, and more. You have so many debts held by different lenders or creditors that they are difficult to track and organize. If you have so many debts that keeping them organized and making monthly payments is becoming too much of a burden, a debt consolidation loan might be worth exploring.

Second, consider the size of your debts. Having numerous debts might be manageable if they are relatively small or you have the income to keep up with them. If your debts are substantial, and making the minimum payments on so many different debts is becoming impossible, a debt consolidation loan might be the way to go. The longer you go without making payments on debts you cannot afford, the more trouble you might find yourself in later.

Finally, consider your ability to pay. Even if you can afford to make monthly payments on all your debts, if you are only able to make minimum payments, the interest might grow faster than you can afford. If your debts have exceeded your income, talk to our team about finding a debt consolidation loan.

How Our Attorneys Can Help You Through the Debt Consolidation Process

Taking out a large debt consolidation loan on your own might not be the best idea. Working with an experienced attorney who can help you explore all your options before deciding which kind of loan works for you is a better idea. Remember, numerous debt consolidation loan services are out there, and not all are reputable. Your lawyer can help you get a loan that will help you and will not cause further financial stress.

What to Do if Debt Consolidation Does Not Work for You in Horsham, PA

While debt consolidation loans can be helpful for some, they are not quite right for others. In such a case, speak to an attorney about filing for bankruptcy. This might seem like a frightening prospect since many people think of bankruptcy as a legal penalty for bad financial decisions. The truth is that bankruptcy is just another legal solution to significant debt problems and might be the solution you are looking for.

Your lawyer can help you determine which bankruptcy chapter will likely help you the most. For example, under Chapter 7, the bankruptcy court may appoint a trustee to your case who may seize your properties and assets to liquidate them. The profits from the liquidation process may then be used to pay your debts. If you are okay with parting with your property, this might be a good solution, especially since Chapter 7 tends to be quick and only takes a few months to complete.

Instead, you might file under Chapter 13, which requires you and your lawyer to develop an aggressive yet feasible payment plan. Ideally, if you stick to your payment plan, you may catch up on debts in a few years without liquidating any property or assets. This might be great for people with valuable assets they wish to hold onto. Other chapters exist, and an attorney can help you decide which is right for you.