If you’re going through financial hardship in the state of Alabama, consider speaking with an experienced bankruptcy attorney. Quality lawyers have a wealth of knowledge and alternatives that may not include bankruptcy at all. One such option that has many benefits and is far less drastic is debt consolidation. Here’s what you need to know about the process and how it can help you get back on your feet.
How Debt Consolidation Can Help You Take Control of Your Financial Life
What is Debt Consolidation?
If you have multiple debt obligations, chances are that you’re paying varying high interest rates across the credit products. High interest rates can make it seem virtually impossible to pay off your balance in full. The main purpose of consolidating your debt is to lower your interest rates so you can ultimately pay off your debts.
Debt consolidation can come in two forms — a loan or a balance transfer. If you consolidate your debt by way of a loan, it will often be in the form of a personal loan from your bank, a home equity loan, or a peer-to-peer loan from someone you know. The loan will be used to pay off most, if not all, of your debt obligations and your payment will then be resigned to a single loan payment.
If you’re consolidating your debt through a balance transfer, you are likely opening a credit card that offers 0% interest for a certain period of time under the promise that the credit line is used to pay off your old debt in exchange for transferring the obligation to the new line. The period of no interest will help expedite the payoff since your payment will go directly to the principal balance.
Why is Debt Consolidation Beneficial?
Debt consolidation is beneficial in many ways, one of which is that it can simplify your debts into one payment that accrues little to no interest. Not only is it easier to make one payment each month, but your ability to pay off your debts is also helped by lowering the interest you accrue on your balance owed. In addition, debt consolidation preserves your credit score as opposed to other forms of debt management (like bankruptcy or debt settlement) that can harm your credit score.
How Can a Bankruptcy Attorney Help You?
Even though you’re not filing for bankruptcy, a bankruptcy attorney can help you consolidate your debts based upon their extensive experience in helping those with severe debt obligations. Being in debt can be overwhelming, but a bankruptcy attorney can help ease your mind by making you feel as though you’re in control of your financial future. A bankruptcy attorney will look at all of your financial statements and create a strategy for you to follow to get your debts consolidated and, ultimately, paid off.
Unpaid debts can create a real sense of anxiety and stress. Whether you need guidance with debt consolidation or bankruptcy, turn to The Gil Law Firm in Dothan, AL. For nearly 20 years, their team of experienced bankruptcy attorneys has helped residents throughout Alabama, Georgia, and Florida get their obligations under control and put their financial burdens behind them. To learn more about their experience and services, visit the firm online, or call (334) 673-0100 today to schedule a consultation.