Debt Consolidation is when a debtor takes out a new, low interest loan in order to pay off other, already existing loans. The purpose of consolidation is to structure existing debt into one loan and provide a clear end-date to existing debt. There are private as well as non-profit organizations that offer debt consolidation programs that any debtor may join. Once you join, you will meet with an experienced debt counselor who will help you decide whether to consolidate or file for bankruptcy. On top of this, the counselor will help you create a realistic debt management plan. The biggest con of debt consolidation is that the debtor must cancel all credit cards while in the program to ensure success, with the occasional exception of a single emergency card. Perhaps the best part of debt consolidation, besides moving closer toward becoming debt-free, is that all creditor calls and harassment will stop.
Prior to signing a Debt Consolidation contract, make sure to read every word and calculate if the time period is too long. If the time is longer than usual, you will most likely end up paying more. So, be very careful before signing anything. At Fridlin & Associates we recommend you hire a bankruptcy or debt attorney that specializes in these types of cases. We offer a free consultation for all bankruptcy clients. Give us a call today and help us help you achieve a debt-free life.
Fridlin & Associates, P.C.
1517 Voorhies Ave, Ste. 4
Brooklyn, NY 11235