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Macungie, PA Debt Consolidation Attorney

You can handle burdensome debts in several ways, such as getting a debt consolidation loan. Because this requires you to take out a new loan altogether, it could put you at risk of predatory lending, which our lawyers can prevent.

Debt consolidation loans can condense multiple debts into one payment, helping debtors stay organized and giving them an easier way to pay off several creditors at once. Though debt consolidation rolls all debts into one, ensuring that terms are favorable is important, as these loans sometimes come with high interest rates. Furthermore, debtors seeking debt consolidation loans could be vulnerable to predatory lending, and our lawyers can stay mindful of this when assisting you with your loan application. We can help you prepare all necessary documents and information for the loan application, including a full list of your creditors and a detailed account of all debts.

Call Young, Marr, Mallis & Associates today at (215) 701-6519 for a free case assessment from our debt consolidation attorneys.

Ensuring Favorable Debt Consolidation Loan Terms in Macungie, PA

With debt consolidation, you take out a new loan that condenses all of your debts and work to pay them off that way. For debt consolidation loans to serve you, they must have favorable terms, and our lawyers can ensure this when helping you with your application.

Debt consolidation only works when it gives you a real chance to rebuild your credit and work towards payments and does not allow you to fall further into debt. Because of this, debtors should be wary of working with debt consolidation companies, as they might suggest loan agreements that cater toward loan servicers so that they agree to the terms sooner. Unfortunately, this could leave you in a difficult position and unable to make payments toward your debt consolidation loan.

First, our lawyers will confirm if debt consolidation is the right debt management tool for you based on your financial situation. Debt consolidation typically works for debtors with debt from multiple sources. If you have one major debt, like mortgage debt, we might explore other debt management options, as you would not have multiple debts to consolidate. For example, when dealing with outstanding mortgage payments, our lawyers may explore loan modification with your bank so that it does not consider pursuing foreclosure. Loan modification might involve extending loan terms or adjusting payment amounts so they are more affordable.

If the servicer you get your debt consolidation loan from is predatory, you could face difficulties shortly afterward from prepayment penalties, hidden balloon payments, and other caveats of the loan that could hinder your ability to pay on time and in full. We can ensure this does not happen to you by carefully reviewing debt consolidation loans before advising debtors to sign them.

Handling Creditors without Debt Consolidation Loans in Macungie, PA

Creditors typically want repayment fast; anything threatening a quick repayment could convince them to negotiate new terms. Indicating that you might file for bankruptcy could achieve this. When you file for bankruptcy, several things happen. First, an automatic stay goes into effect, and creditors cannot contact you for payments outside the case. Another vital thing happens, too: dischargeable debts are erased.

Debts that could otherwise be consolidated, like credit card debts, would be discharged, leaving debtors with no obligation to repay them. Because bankruptcy could mean certain creditors do not get repaid at all, they might agree to debt settlement as an alternative to a potential bankruptcy case. Even when debts are non-dischargeable, creditors often want to avoid being involved in a bankruptcy case, as it requires time and resources on their behalf as well.

It is also important to note that bankruptcy is a viable debt management tool like debt consolidation. Remember, dischargeable debts are erased during bankruptcy. So, if you have considerable medical or credit card debt, bankruptcy will eliminate those debts and your need to repay them.

Initially, debtors might be drawn to taking out debt consolidation loans instead of filing for bankruptcy out of concern for what bankruptcy could do to their credit. While that is understandable, your credit has likely been suffering because you are in debt, and bankruptcy can provide the structure and relief you need to build your credit back up again successfully.

Preparing Debt Consolidation Loan Applications in Macungie, PA

Debtors need to provide a significant amount of information when seeking debt consolidation loans, and our lawyers can help you compile the documents and details lenders typically want.

In addition to your personal information, like your name, date of birth, and Social Security number, you will also need to provide the loan servicer with proof of employment, income statements, bank statements, and other financial information regarding the size of your debts and creditors.

Our debt consolidation attorneys can help you compile and condense this information, including a complete list of your creditors, the exact amounts you owe, and your credit history and score. We will also identify potential assets to list as collateral if necessary and determine the loan amount you need and your preferred loan term. Our attorneys can prepare a proposed payment plan for the loan servicer so that they fully understand your financial situation, debts, and your ability to pay.

It is important to keep all application materials and correspondence with loan servicers throughout the application process, and we can handle this for debtors so that they do not have to. Approaching loan providers without a plan and with considerable debt could make you vulnerable to predatory lending. Preparation leads to better decision-making when it comes to agreeing to loan terms and increases an applicant’s chances of approval for a debt consolidation loan.