Debt Consolidation Help in Georgia
There are many reasons why people are struggling with debt and seek options that will help them get out of it. Your Marietta Debt Consolidation attorney Matthew Cherney can help lower and pay off any current unsecured debts that you have. If you are looking for a way to get out of debt, debt consolidation may be the best option.
Reasons Behind Debt
You will need to figure out when you started accumulating debts so that a solution can be found. There are several reasons why people experience debt such as:
- Medical bills
- Student loans
- Auto loans/Repossession
- Overdue mortgages/Foreclosure
- Among many other reasons
The best thing to do while going through the process of debt consolidation loan is to make a budget plan so that your bills and creditors will be paid on time. It is also important to remember that you should not spend more than what is within your means.
What is Debt Consolidation?
One of the first things to understand is knowing what debt consolidation is and learning how it will help to clear your debts. Debt consolidation is a legal opportunity that allows debts to be lowered, grouped together, and paid with a consolidation loan. You will be able to pay off debts by paying a fixed amount every month until your credit is cleared. Debt consolidation is an option that is open to everyone, and this even includes those with secured debt with collateral or unsecured debt.
Applying for Debt Consolidation in Georgia
Having the option to pay off accumulated debt by applying for a loan can seem easy at first, but not everyone is eligible. Lenders require a certain credit score before they will approve an application. A low credit score is considered a risk to lenders, so there is a chance you may not be approved. The higher your credit score is, the more likely a consolidation lender will approve your application.
Another factor that is considered by lenders is the total amount of debt you have. If your debt is too low and does not reach the minimum threshold for a consolidation loan, a lender is less likely to approve the loan. A debt consolidation lender will also consider the amount of the loan to be paid back, monthly fees, and how long it will take for you to pay back the loan.
How does Debt Consolidation in Georgia work?
It is important to keep in mind that a debt consolidation loan can help relieve debt, but it is not an overall solution. You will still have to pay back the loan through a debt consolidation lender in addition to paying any recurring monthly bills such as a mortgage, rent, electricity, water, or cable bills. It is necessary to know if you can afford to pay off the loan and still live fairly comfortably; you should not have to struggle unbearably while paying off your debts.
Debt consolidation can be a perfect option if you are well organized and can follow a budget plan that will help avoid overspending. This alternative solution to clear your debt should be considered as a temporary aid. It is designed to provide a better start for managing your financial difficulties.
What if my Credit is not Good Enough for a Debt Consolidation Loan?
Not all people can qualify for a debt consolidation loan. On top of that, there are companies out there that offer bad credit loans in Georgia and even if your can get a bad credit consolidation loan, it may not be the best idea. Many times it will be a temporary fix and the interest rates on these loans are so high that it eventually puts you back in debt, but there are alternatives.
- Debt Negotiation – We can speak to your creditors on your behalf and try to settle your debt or lower your payments.
- Credit Counseling – There are companies in Georgia that will offer credit counseling consolidation. This is not a loan and you do not need good credit. Many credit counseling customers end up failing because their debt is just too big and they cannot keep up the payments.
- Chapter 7 – A chapter 7 bankruptcy plan sounds horrible but it literally gets rid of all of your debt and gives you a fresh start. It is the best option if you are struggling to make payments on your debt. Many of our clients only regret is that they didn’t contact us sooner about this option.
- Chapter 13 – A chapter 13 bankruptcy is more favorable if you would like to save your home from foreclosure or your car from being repossessed. We would create a chapter 13 repayment plan that would catch you up on late payments or arrears. It has many of the benefits of a chapter 7. If you have regular income and just want to reorganize your debts, this is a great option. It is like debt consolidation loan without applying for a loan.
Debt Relief in Georgia
There is much more detail that goes into all of the above and the best way to figure out how we can help you is to contact us for a FREE CONSULTATION. We have dealt with thousands of clients and have seen every scenario, the stress that your debt is causing you can be stopped with one phone call.
Making A Budget Plan
Having a budget plan will help keep financial transactions well organized so that creditors will be paid on time. It is also a good idea to consult a professional financial lawyer or advisor for help. An attorney can help you devise an effective plan to remove debts as quickly as possible.
By assessing all of your spending habits, it will be much easier to determine the crucial spending necessities. Once a spending pattern has been observed, a financial plan can be made so that you can pay off the consolidation loan as soon as possible.
Learn More About Debt Consolidation
By understanding what debt consolidation is and how it works, the better the chances to get out of debt. It is not a good idea to wait until you are almost bankrupt to apply for a consolidation loan, but instead, identify the problem at an earlier stage where debts are more manageable. Take the time to decide if this type of loan is right for you and consult a professional Atlanta debt consolidation attorney to find out what steps you need to take to start your path towards financial recovery.
Filing Bankruptcy is Another option
Another option that you have to to consider filing chapter 7 or chapter 13 bankruptcy. Cherney Law Firm specializes in bankruptcy in the state of georgia and is a very experienced Atlanta bankruptcy attorney. By filing bankruptcy, you can eliminate your debt or, if you file a chapter 13 repay your debt in a 3-5 year period. FIling for chapter 13 is kind of like a debt consolidation plan except with a chapter 13 your creditors are forced to accept the plan as long as the bankruptcy courts approve it.
Contact Cherney Law Firm today if you would like to discuss the many ways we can help you with debt relief.
What is debt consolidation?
Debt consolidation is a way to take all of the debt that you owe and consolidate it into one payment. Many times you can save thousands of dollars per year using debt consolidation, depending on your financial situation.
Is chapter 13 a consolidation loan?
No. A chapter 13 bankruptcy is not a loan. It allows people who are struggling with debt to restructure their debt with a 3-5 year payment plan. A chapter 13 bankruptcy is very helpful for people who have fallen behind on payments like their home mortgage. A chapter 13 lets you catch up on your late payments while being able to keep your home.
Is Debt Consolidation a way out of debt?
If you are unable to make your monthly payments and are falling behind on your bills, debt consolidation is an option to consider. There are several options to debt consolidation and it is best to speak to a financial advisor or an attorney that can help you see if debt consolidation is right for you.