Falling behind on paying monthly bills leaves you open to letters from creditors, downgrades of your credit rating, wage garnishment, and harassment by debt collectors. As unpaid bills accumulate, they can turn into a mountain of debt that is difficult to escape. No one should have to live with that kind of financial stress.
Florida Law Advisers, P.A., of Orlando, has the legal experience to help individuals and families in Florida work through financial problems, end creditor harassment and debt collection, and regain control. While our experienced attorneys do offer bankruptcy assistance, we first evaluate each individual’s financial situation and explore the alternatives to bankruptcy that are available and potentially helpful to our clients.
In many cases, Orlando residents who are struggling with debt can get a handle on their financial problems through debt consolidation. Florida Law Advisers can help you negotiate a debt consolidation loan or a low-interest credit card that will enable you to manage debt more effectively. Contact us today to schedule a free consultation with a debt relief attorney about how to consolidate debt in Orlando.
Why Choose Florida Law Advisers, P.A. as Your Debt Consolidation Attorney
An experienced debt consolidation lawyer understands that hardworking individuals and families can experience financial problems due to unforeseen circumstances beyond their control. We want to help you seek relief from crushing debt. We work to present our clients with all the best legal options for debt relief.
An experienced Orlando debt consolidation attorney at Florida Law Advisers, P.A., is ready to meet with you, review your financial situation, and map out the best path forward. We can get started with a free consultation via phone call, online video meeting, or meeting in our Orlando office. Our mission is to provide stress-free, cost-effective results for you.
Contact us now for a free consultation about debt consolidation and regaining control of your financial future.
What Is Debt Consolidation?
Debt consolidation is typically used to tackle high-interest debt, such as credit card debt, that can grow faster than you can pay it off. Your consolidated debt typically has a lower interest rate, and you are provided a longer payment window.
There are two approaches to consolidation of debt:
- Obtain a new loan and use that money to pay targeted debt (not including your mortgage, for example). This leaves you with one creditor holding the debt and one affordable monthly payment to make each month. For many people, a single bill each month is easier to budget and less stressful. While your monthly payment is lower, you may pay more overall because you’re paying over a longer period of time.
- Transfer targeted debt to a zero- or low-interest credit card. This allows you to pay down debt without interest or at a more manageable rate. A caution here is that the special zero interest rate or low-interest rate is usually temporary and doesn’t apply to additional debt put on the card. If you are late with a payment, the interest rates on your entire debt will balloon. You may also have to pay a balance transfer fee, which is usually a certain percentage of the amount you transfer or a fixed amount, whichever is more. This would be rolled into your consolidated debt.
We would look over the terms of any loans or credit card company offers available to you and help you understand the terms of acceptable loans or credit cards.
When Should You Consolidate Your Debt?
Seeking a debt consolidation loan may be a viable option for you if you have regular income that covers your basic needs and provides enough for you to make scheduled payments on the consolidation loan.
You must keep in mind that debt consolidation isn’t a quick fix for outstanding debt. First, your credit report must be good enough to qualify for a debt consolidation loan or a credit card with a 0% interest period or low interest. You’ll need to be capable of paying off a consolidation loan within five years or a credit card balance in less time.
We will evaluate your finances and consider the right solution for you before recommending a debt consolidation loan or credit card transfer. A rule of thumb is that if your monthly debt payments (including mortgage or rent) don’t exceed 50% of your monthly gross income and if you have enough cash flow to cover the consolidated debt payment, this may be a reasonable step for you.
When Is Debt Consolidation Not Worth It?
If your debt is so little that you can pay it off within six months to a year with payments you’re making now, consolidation won’t save you enough to make it worthwhile. If you obtain a consolidation loan to rid yourself of debt, it’s quite likely you will not be successful unless you can also cut spending.
We sometimes find that a client is so deep in debt that he or she has no hope of paying off the debt, even with debt negotiation and restructured payments. When someone has insurmountable credit card debt or medical debt, the individual may need to consider a bankruptcy filing.
Sometimes taking advantage of your right to seek debt relief and declare bankruptcy is the most effective move for consumers to re-establish financial stability. Chapter 7 bankruptcy requires credit counseling and allows for the discharge of several types of personal debt, including credit card debt and other unsecured debts. If you have regular income, you may seek a Chapter 13 bankruptcy, under which you devise a debt restructuring plan to repay most debts. Under Chapter 13, you do not have to sell off assets as required under Chapter 7.
Get in Touch with an Orlando Bankruptcy Attorney for Help with Debt Consolidation
An experienced debt consolidation lawyer at Florida Law Advisers, P.A., in Orlando, can review your financial situation and help you determine whether bankruptcy or debt collection is best in view of your specific circumstances. Our goal is to find the right solution to relieve your financial burden and help you rebuild your credit and financial standing. Contact our law firm for a free consultation with an experienced Orlando bankruptcy attorney to understand your legal rights.