A debt consolidation lawyer Oklahoma City, OK relies on knows that when you are struggling with debt you may think that bankruptcy is your only option. This can be especially hard if you would prefer not to file for bankruptcy and if you are concerned about your credit. However, we believe that you have other options instead of bankruptcy and debt consolidation may be right for you. Before you throw in the towel or think that you can only file for bankruptcy, call our office and schedule a consultation. We will work with you to try and find a solution that is in your best interest. Reach out now.
What is debt consolidation?
When you look into debt consolidation, you may not realize that you will have two options.
- Debt consolidation repayment
- Debt consolidation loans
When you consider undergoing debt consolidation repayment plans, this means that you and your debt relief lawyer Oklahoma City, OK relies on will work with someone to help get a new repayment plan that involves negotiating with your creditors. This means that you may now have the benefits of lower balances and interest rates. This can easily simplify your payments and make your payments much more manageable. However, a drawback to this option is a lower credit score. This is something you will want to speak with your attorney about.
Debt consolidation loans are usually low-interest loans and these are used to help pay off your higher-interest debts (such as credit cards). Although this kind of loan should not be used to get rid of your debt completely it can help you out enormously when it comes to savings. You will be paying less with interest on this than you would be with your original debts, saving you more money in the end.
Should you do debt consolidation before you consider bankruptcy?
Looking into debt consolidation before you file for bankruptcy is a very good option because it can help you significantly decrease the amount of debt that you owe. That said, bankruptcy is a good option if you want to take care of the reasons behind your debt. It is always best to speak with an attorney when you are looking at both options before coming to a decision.