Debt consolidation refers to putting together all your debts and making a loan to pay off those debts together. You don’t have to pay them off in one go because debt consolidation will allow you to make monthly payments. And when you are done with those payments, the loan you took would have to be paid by you.
There are many ways why debt consolidation is helpful. For one, it helps you to slowly settle all your debts together. Some people try to finish paying off one debt before moving on to another and this causes some debts to earn more interest for the creditor.
If debt consolidation sounds foreign and complicated to you, then hiring an attorney would be the perfect route.
Importance of Hiring an Attorney for Debt Consolidation
The attorney would give you more options.
If you’ve gone over your debts and feel like there will be no other way to go around it but to pay everything or declare bankruptcy, then you do need a lawyer. When it comes to working with debts, there are many ways to do so and an attorney can show you those options. Attorneys are aware of the many payment methods and loans that one could take so you don’t have to resort to bankruptcy.
You won’t have to face all the calls and inquiries from your creditors.
Having debts is difficult not only because you have to pay and lose money, but it’s because you have to constantly face and give updates to your creditors. Not doing so will only make them think that you are dealing with them in bad faith with an interest to leave them hanging. Nobody wants to be accused of that, so they try their best to face their creditors.
Having a lawyer for debt consolidation settles these annoying inquiries because they will be the ones facing your creditors. To add to that, having a lawyer shows that there is intent to pay your debts.
Someone will defend you if you get sued.
The most important advantage of having an attorney for debt consolidation is that they can defend you if you get sued by a creditor. They can present evidence that you didn’t have bad faith and that you have always intended to pay. They will also be able to explain your financial standing. If they do it excellently, you can also be given ample time to settle your debts.
Moreover, hiring an attorney makes you aware of the laws that involve creditors and debtors. They will be able to inform you of the legal courses of action and prevent you from doing something that will harm your case. Having this knowledge can help you a lot in dealing with the stress and demands of your creditors.