Debt Consolidation Attorney Oklahoma City, OK
Being in debt can be extremely upsetting and overwhelming. At times you might feel as if there is no hope to get out of debt. As a debt consolidation attorney Oklahoma City, OK has to offer might explain to you, there are a number of options that many people are not aware of. These options are broad which means there is usually something for everyone.
Debt Consolidation
With debt consolidation, all of your unsecured debts will be totaled, and then you will be responsible for paying one payment rather than multiple ones. Whomever is handling your debt consolidation will take your payment and divide it among creditors. In this case, an Oklahoma City, OK debt consolidation attorney would assist with this.
Debt Consolidation with a Lender
In general, without the right lawyer, you will be given a loan by a lender. This loan pays off all of your debt, and then you will make one monthly payment to a new lender. The loan will carry interest, so you will be responsible for paying off the interest, plus the loan. Ideally, the loan will be available to you at a lower interest rate than what you had been paying. That being said, you might expect the ender to ask for security, such as a car, before they give you the loan. As a debt consolidation attorney in Oklahoma City, OK might advise, this should not be agreed to unless the loan is a much better deal than what you had before, and you are sure you can make the payments. Furthermore, you will be responsible for paying all interest, late fees, and added on fees when you consolidate your debt with a lender, and without a lawyer.
Alternatives to Debt Consolidation
If you only have a small amount of debt, or a few loans, debt negotiation might be a better option. In this case, a debt attorney in Oklahoma City, OK respects will negotiate with creditors to accept a lump sum of money. In order to do this, the lawyer will ask you to cease all payments while he or she negotiates for you on your behalf. It is often possible to pay just 40-60 percent of the loan.
Another option might be filing for Chapter 13 bankruptcy. In this case you will agree to pay all of your debt off within 3 to 5 years. Payments are made to a bankruptcy trustee who will pay off creditors. As you make your payments you cannot be sued. There are also no interest or penalties on unsecured debt. Once the plan has come to an end, at the 3-5 year mark, the court can discharge the remaining debt.
Debt Consolidation Considerations
It is recommended that you work with a debt consolidation attorney in Oklahoma City, OK rather than consolidation companies who are not lenders. These companies can actually make your situation worse. A lawyer can ensure everything is considered beforehand, and then organized in a way that supports your financial situation. In general, debt consolidation is best suited to someone who has large amounts of debt and high-interest rates, but who does not want to, or cannot, file for bankruptcy.
Otherwise, debt settlement may be more practical. This is when a lawyer will negotiate for reductions in your debt. You will pay less than the debt consolidation, and for a short period of time, even with the legal fees. Best of all, you have legal representation.
If you would like to know more about debt consolidation, call a debt consolidation attorney in Oklahoma City, OK today. Contact Marty Martin Law.