What is debt consolidation?
Debt consolidation is the process of getting one large loan to pay all of your outstanding debts. Debt consolidation is beneficial because the interest rate for the consolidation loan may be much lower than the interest rate you are currently paying.
Do I need a lawyer for debt consolidation?
A lawyer can assist with negotiations and protecting your legal rights. However, a lawyer is not required for debt consolidation.
Is debt consolidation better than Chapter 13 bankruptcy?
Each type of debt relief provides its own unique benefits and disadvantages. You should consult with an attorney to see which type of debt relief would be best for your specific situation.
What is the interest rate for a consolidation loan?
The interest rate will vary between lenders, you should shop around for the lowest rate. Also, be sure to compare the loan origination costs and fees. Some debt consolidation loans charge high origination fees and closing costs.