Margaret, AL—Debt consolidation is when an individual takes all or most of their current debt and lumps it all together. Instead of them having to make multiple payments each month to different creditors, they would only be required to make one payment possibly with a lower interest rate, according to Bankrate.
Those who wish to consolidate their debt will need to find a lender who will provide them with a loan to cover the monthly payment. The debtor would then be required to make their one monthly payment to the debt consolidation company from which they obtained the loan from.
What types of debt can be consolidated?
There are several types of debt that can be consolidated which include credit cards, student and personal loans, payday loans, and even medical debt, according to Bankrate. If an individual has accrued a significant amount in credit card debt and/or in loans and they are struggling to repay the money they owe, they might consider researching debt consolidation companies.
Debt consolidation could help an individual avoid defaulting any more than they already have or having to file for bankruptcy.
Now, it is important for individuals to be sure the company they choose to work with is reputable and won’t just take their money. The Better Business Bureau (BBB) is one resource individuals can rely on to find out more about a company and how it operates.
What if a person has a substantial amount of debt and doesn’t qualify for a debt consolidation loan?
If an individual doesn’t qualify for a debt consolidation loan because their credit score is low, they might need to consider some other options. Depending on how much debt an individual has accrued, if they can’t repay their creditors and are worried their assets could be seized, they might want to consult with a Margaret, AL bankruptcy lawyer.
Although bankruptcy might not be the first option for them to consider, an AL bankruptcy lawyer can certainly help provide them with some insight as to when it might be a good time for them to file. The Margaret, AL bankruptcy attorneys at Hill, Gossett, Kemp & Hufford, P.C. understand that financial hardships arise and are here to help those who aren’t sure of how to get a handle on their debt.
Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.
Hill, Gossett, Kemp & Hufford, P.C. can be reached at:
2603 Moody Parkway, Suite 200
Moody, Alabama 35004
Phone: (205) 640-2000
7900 Parkway Drive
Leeds, AL 35094
Phone: (205) 699-5500
6441 U.S. Highway 11
Springville, Alabama 35146
Phone: (205) 467-2225