Way to Safely Consolidate My Credit Card Debt? | Debt Lawyers
August 18, 2016

Is there a Way to Safely Consolidate My Credit Card Debt?

Credit card debt can be overwhelming and you may be wondering where to turn.  A credit card debt consolidation attorney can assess your situation and work with you to make your debt more manageable.  Debt consolidation can be achieved in a number of ways.  If you are struggling with credit card debt there are many advantages to debt consolidation but it is advisable to work with a knowledgeable professional to ensure that credit card debt consolidation is the right choice for you.  An experienced debt attorney can walk you through the ways to safely consolidate your debt.

The Benefits of Consolidating Credit Card Debt

There are many benefits to consolidating all your credit card debt into one lump sum loan.  Consolidating your debt can make your life much less stressful.  You will only have to deal with one creditor and you will only have to make one monthly payment.  Consolidating into one monthly payment decreases the chance of missing a payment and incurring additional late fees.  Consolidating can make dealing with your credit card debt simpler, easier to manage and less expensive.  In an ideal situation you can use debt consolidation to combine your debt into one loan and obtain a lower interest rate.  A lower interest rate will translate to lower monthly payments making your loan less expensive and more manageable.  Consolidating seems like a great idea when you consider the benefits but it can come with financial hazards if you are not careful.

The Pitfalls

There are credit consolidation pitfalls. You should work with your debt attorney to research and review your consolidation options carefully.  Teaser interest rates can make a new loan look attractive in the beginning but if those rates skyrocket over the life of the loan; long term they can cost you much more than your individual credit card debts.  Make sure you know how long the low APR rate period extends for any loan you are considering and be realistic about what you can pay every month.  If your payments extend beyond that initial low APR period your monthly bill will go up significantly.  Consolidated loans can also come with loan origination, administration and processing fees.  If the fees and costs associated with your consolidated loan are high they can negate any savings you might receive from a lower interest rate.  You also have to be careful with your future spending after consolidating your credit card debt.  Continuing to use credit to maintain your standard of living can cause you even more debt and create additional problems.

Is Consolidating The Best Option For You?

Instead of consolidation it may be worth your while to ask your debt attorney to try and negotiate the terms of your individual loans.  Negotiating the terms of your credit card debt can be a long and arduous process with no guarantees of success; however a debt attorney can review your situation and advise you if it could be worth the effort to try.  Your debt attorney can negotiate on your behalf with each of your individual creditors and possibly get your payments and/or interest rates reduced.  Your attorney can also work with your creditors to achieve a forbearance or lump sum settlement.  Your debt attorney has the experience and knowledge to help you achieve the best results for your financial health.

You may consider using a home equity line of credit to pay off your credit card debt.  This is a tempting but potentially risky option. “Although you may be able to get credit at lower interest if you take out a loan against the equity (wealth) of your home, doing so decreases the net worth of your home and could put your home at risk. ”  Your debt attorney can better advise you regarding this option.  Be very careful before taking out a loan against your home.  If you are already struggling to pay your credit card debt the last thing you want to risk is not being able to pay a loan that could cost you your home.

Be honest when evaluating your situation.   For any consolidation or debt reduction efforts to be successful you must be honest with yourself and your debt attorney about your finances and situation.  You need to look at your spending and income carefully and assess if there is spending that could be eliminated as well as your actual ability to pay your bills.  If you consolidate but are still unable to make your monthly payments you will fall behind and risk your account being reported to collections and damaging your credit.  You must be forthright and direct with your debt attorney so that he or she can fight for a payment that is affordable and works for you.  When advising you on your best options, you attorney needs an accurate picture of your resources and expenses.

Credit card debt consolidation is a viable option that can impact your debt in a positive way, when done correctly.  Before pursuing debt consolidation, work with our experienced debt attorneys to avoid common consolidation pitfalls.  Rely on the experience of our debt attorneys to explore all your options, including consolidation, and find what best helps you achieve your financial goals and preserve your credit.  Consolidation may or may not be the best choice; give us a call at 855-976-5777 and allow us the opportunity to help you evaluate and implement the best option for you.

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