Home » Bankruptcy Law » Pennsylvania Bankruptcy Lawyers » Media, PA Bankruptcy Lawyer » Media, PA Debt Consolidation Attorney

Media, PA Debt Consolidation Attorney

If you are struggling with debt in Media, our lawyers can see if debt consolidation might improve your financial situation.

Debt consolidation aims to help people in Media get out of debt. For example, our lawyers can assess your situation to see if it would benefit you to take out a debt consolidation loan to repay your current debts. We could negotiate beneficial terms for this new debt consolidation loan so that you do not face additional financial difficulties down the line. Debt consolidation is often seen as an alternative to filing for bankruptcy, but it might only suit some situations. For example, filing for bankruptcy might be preferable if you need a debt discharge. When it comes to debt consolidation services, it is important to get them from the right source so that your best interests are represented.

To get a confidential and free case assessment from our Media, PA debt consolidation attorneys, call Young, Marr, Mallis & Associates at (215) 701-6519.

The Purpose of Debt Consolidation in Media, PA

The goal of debt consolidation is to make debt repayment easier for debtors in Media. That said, there are risks to debt consolidation, and depending on your financial situation, there might be better options for you to consider.

If you have credit card debt, you could consolidate it by transferring it to another credit card with lower or no interest and then repay your debt that way. If you choose this route, make sure you pay off this new credit card.

Debtors can also get debt consolidation loans. While this might seem counterintuitive, it is often how the process works. Instead of paying off multiple creditors separately, you would repay them simultaneously through your new debt consolidation loan. Because you have a new loan, you would then work toward repaying your new creditor. That said, our debt consolidation attorneys can negotiate new terms that work for you so that you do not get back into debt because you cannot repay your debt consolidation loan in Media.

Debt Consolidation and Your Credit Score in Media, PA

Several factors may determine how heavily debt consolidation impacts your credit score. We can prepare you for potential hits and explain the best ways to rebuild your credit once debt consolidation is over.

When you apply for a new loan for debt consolidation, the lender will do a hard inquiry on your credit report. This happens whenever you open a new credit card or get a new loan. This results in a slight dip in credit score that you can build back up relatively quickly.

Furthermore, if you open a new credit card to consolidate debts, you want to negotiate the terms to keep your credit utilization low. For example, if your credit utilization ratio is higher than 30%, meaning the sum of your balance is too high compared to the card’s credit limit, that could hurt your credit over time.

Properly managing debts after consolidating them is important to keep your credit score good while you address your financial situation. If you consolidate debts under a credit card or with a new loan, you must make your payments, or your credit score could worsen.

Debt Consolidation and Bankruptcy in Media, PA

Debt consolidation is only an option for some, depending on the size of their debt and other financial details. When assessing your situation, our lawyers can determine if filing for bankruptcy might be better for you.

For example, when debtors file Chapter 13 bankruptcy in Media, they can consolidate their debts, just in a different way. Chapter 13 consolidates all eligible debts under one, typically low, interest rate. This could include credit card bills, medical bills, mortgages, and car loans, to name a few common debts consumers typically struggle with.

After consolidating your debts under the same interest rate, you will work to repay debts through a structured repayment plan. Our lawyers will tailor this repayment plan to your specific needs and abilities. For example, if you need a longer repayment plan because of your current income, dependents, and expenses, we can negotiate that on your behalf.

While debt consolidation and bankruptcy both provide financial relief for debtors in Media, they are very different. Bankruptcy impacts credit scores differently than debt consolidation. Furthermore, bankruptcy is a legal process that takes place in court, whereas debt consolidation is not. Moreover, when you file for bankruptcy, you get some perks that do not come with debt consolidation, like an automatic stay and debt discharge.

If you cannot file Chapter 13 because your income is too high, we can help you file Chapter 7 bankruptcy to repay creditors in Media.

Getting Debt Consolidation Services from the Right Source in Media, PA

Debt consolidation companies might not give your case the specialized attention it deserves or have the experience necessary to negotiate with lenders or creditors to achieve the ideal result on your behalf.

When seeking debt consolidation services, debtors in Media should consider the complexity of their financial situations. Unlike experienced attorneys, debt consolidation companies might not consider all your debts or other ways you could feasibly manage your debt. For example, if bankruptcy is a better option for you, a debt consolidation company might not explain that because doing so might mean you no longer need their services. Comparatively, our attorneys can thoroughly assess your financial predicament and explain whether proceeding with debt consolidation or moving forward with a bankruptcy case is best.

When it comes to your debt and future financial security, it is important that you feel comfortable with the route you have taken. Debt consolidation companies might be less likely to operate with your best interests in mind, but our lawyers can.