Debt consolidation program - Is it the only way to eliminate your debts?

It’s not mandatory that only an organization can offer you debt consolidation services. You can try to get rid of your outstanding bills on your own as well.

Can you consolidate debts on your own?

YES, you can do it through a debt consolidation loan (secured or unsecured) or through a balance transfer credit card.

Do you need to consult a debt consolidation lawyer?

It is very hard to understand the complex state and federal laws governing the debt industry. Here, a debt consolidation attorney can help you understand the laws clearly. Moreover, a lawyer can also assist you in any legal issue that may appear in future.

Here are some of the benefits of a seeking debt consolidation advice from an attorney

  • Legal knowledge: An experienced attorney has a profound knowledge on debt and financial laws. As such, he would provide you with proper guidance keeping in mind the legal issues.
  • Legal representation: A good attorney or a law firm can help you in getting legal representation if situation demands.
  • Legal papers: You may have to sign some complicated legal papers. An experienced attorney will know the proper way to fill out the papers. He will guide you in filling out the document without committing a mistake.
  • Harassment issues: Creditors/collectors tend to avoid using aggressive tactics if an attorney/law firm is involved in the negotiation process. This is mainly because a consolidation attorney may immediately sue a creditor in the event of debtor's harassment.
  • Good negotiating skills: Usually, attorneys are excellent negotiators. You may feel nervous in front of your creditors, but your attorney can handle them perfectly.

Are there any other ways to repay bills apart from consolidation?

The consolidation process is the easiest and safest option to get out of debt. However, if you do not have any inclination to consolidate bills, then you may resort to other debt relief options, which are listed below:

Debt Settlement: Debt settlement helps you overcome your debt by negotiating lower payoff amount with your creditors.

Debt management: In this plan, a credit counseling agency or the debt management company deals with the creditors to lower the interest rates on the unsecured debts, and develop an alternative repayment plan.

Bankruptcy: Bankruptcy should be your last resort to get out of debt. Bankruptcy damages your credit score by 200-250 points.

If you are knee deep in debt and thinking of filing bankruptcy, you should consider all your options. If your financial situation is not too terrible, then consumer debt consolidation is a good way to save yourself from harassing and threatening calls from creditors, and restore your damaged credit score gradually.

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