In many ways, people enjoy more wealth today than ever in the planet’s history. At the same time, many people continue to struggle with debt. That is one reason the market for debt relief services in the United States is worth more than
$17 billion yearly!
That is also why there is so much demand for quality debt consolidation assistance, when people are going through bankruptcy or are looking for debt relief, finding the right debt consolidation lawyer to help them can make all the difference.
There might be even more demand for debt consolidation services if more people appreciated the advantages they can provide. So what is so great about receiving debt consolidation assistance from a quality attorney?
Read on to learn all about the most important things to understand about debt consolidation and how a debt consolidation attorney might be able to help you!
Knowing How to Get Rid of Debt Is Invaluable
Not everyone realizes what kind of debt relief options are available to them. Most people think that if they have borrowed a certain amount, they must pay it back. And if they accepted specific interest rates in the past, they imagine they must pay back their debts with those interest rates according to their original agreements.
Some people know that they might face bankruptcy if they fail to do this. However, most people only know that bankruptcy is a terrible financial outcome. They don’t realize how bankruptcy works.
For example, most people don’t realize that bankruptcy is a blessing.
Bankruptcy is a far better result than the alternative. In places without bankruptcy options, people sometimes have to go to prison when they cannot pay their debts.
There is a lot that people can do when they find themselves drowning in debt. The longer you maintain your current trajectory of paying back what you can and keeping your original debt arrangements, the harder it will be for you to dig yourself out of your hole once you find a strategy that helps you.
Benefits of Debt Consolidation Help
That is why it is essential to find out about debt consolidation and relief options as quickly as possible. But are the advantages of these debt management options so meaningful?
First, people can often negotiate to pay back less total money than they borrowed. Second, people can pay things back in smaller amounts with lower interest rates. Third, in the right situation, people can simplify their debts or arrange to pay them back over a more significant number of months or years.
In other words, debt consolidation and relief options can enormously impact your financial health.
Consolidating Debt Can Be Complicated
But why would these options even be available? If you owe a company a certain amount, why would they ever agree that they will consider your debt clear if you pay off a lesser amount?
The answer has to do with bankruptcy. If you can’t pay back your debts, you can declare bankruptcy. That is a terrible financial outcome, but it is not the world’s end.
More importantly, for understanding debt consolidation, bankruptcy isn’t any good for your creditors. They do not want you to go through bankruptcy.
After all, you clear out your debts when you go through bankruptcy. You then deal with the aftermath and terribly low credit, but you do not pay back any of the money you owe your creditors.
In other words, the alternative for your creditors is receiving nothing. That’s why it makes sense that they would be willing to negotiate for you to pay back at least something.
In other words, it makes more sense to think of creditors as people who want you to pay back as much money as you can. It makes less sense to think of them as extremists who will insist on getting back everything you owe them or else forcing you to go into bankruptcy.
Negotiations Can Be Difficult
However, just because creditors are open to these negotiations does not mean they are happy about them. After all, if they make this process too easy, more and more people might try to get out of paying back their debts. Then, creditors would have to close up shop and stop providing loans to people since they could not expect to get their money back.
The complexity of negotiating debt consolidation is why it helps to have the services of an experienced debt consolidation attorney. They know the kind of evidence that creditors are looking for.
They can collect your information and arrange it as persuasively as possible. Then they can make your case to your creditors.
If all goes well, you will have less money to pay back, lower interest rates, or more time. With the right financial strategy, you can avoid bankruptcy.
Different Types of Debt Require Different Strategies
Another reason so many people find debt consolidation attorney assistance helpful is that not all kinds of debt are created alike.
Take
student loans, for example. This kind of debt survives throughout the bankruptcy process. That means that you need to use different strategies when you handle it.
At the same time, some government people are talking about the possibility of forgiving student loan debt. If that happens, student loan debt will switch from the most permanent kind of debt to the minor permanent type of debt.
Then you have mortgages, personal loans, credit card debt, and more. All of these different kinds of debts require different types of strategies. On top of that, you need to set up a manageable system to deal with the complexity of multiple debt consolidation strategies in parallel.
With a great debt consolidation attorney, simplification is often as valuable as decreasing interest rates or the total amount you must pay back.
Find a Lawyer With Experience With Your Problems
Debt consolidation lawyers have dealt with situations like yours before. They know the right strategy for each kind of debt you may have. They know how to simplify your financial situation into a manageable, straightforward plan to remember and execute.
They can also provide advice and general support. After all, you may not know what to do in such a dire financial situation. However, an
experienced lawyer in Philadelphia will have seen many people try different strategies for managing their conditions.
They will have seen for themselves which strategies work and which do not. They can tell you what you need to worry about and what you can relax and stop tracking.
Focus On Hiring a Lawyer With Great Reviews
As great as that debt consolidation can be, you must find the right attorney to make the most of it. Some people make the mistake of hiring the first attorney they find. However, considering more attorneys increases your chances of finding the best attorney.
If you know someone who has worked with a debt consolidation attorney, reach out to them. Consider sharing a little about your situation with them. Then, you can ask them if they would recommend their attorney for you.
You can also find many debt consolidation attorneys on google. However, you may want to turn to ratings and reviews to help you choose the right attorney.
Finding an attorney in Philadelphia with an excellent track record of success is best. The more positively past clients rate them, the better the chance they will be able to help you.
You can also use overall ratings to help you sort through debt consolidation attorney options. A debt consolidation attorney with great or medium reviews might be a good choice. But it is probably safe to stop considering the attorneys with the worst overall ratings.
You can then read the written reviews to understand which lawyer is the right choice for you.
Understand the Advantages of Hiring a Debt Consolidation Attorney
Few things will affect your quality of life as much as how you handle your financial situation. While some mistakes can be corrected, others will spiral out of control if you are not careful to use the right strategies. When it comes to consolidating debt, it is essential to do as well as possible so that you can minimize the damage to your finances.
To learn more about what a debt consolidation lawyer might be able to do for you, reach out and
get in touch with us here at any time!
