Alternatives To Debt Consolidation In West Virginia
Debt consolidation is a strategy that involves taking out one loan to pay off many others. This may allow you to lower your monthly payment or interest rate but may not stop harassing debt collectors.
Debt consolidation is not always the best idea when you are struggling with credit card debt or other expenses. At Powell & Majestro P.L.L.C., our lawyers advise clients throughout West Virginia regarding a variety of preferable strategies to stop debt harassment and regain control of their finances.
The Problem With Debt Consolidation
While debt consolidation may sound like a great idea, it has significant downsides:
- Your debt is still there; it has simply moved. Real debt resolution takes time and patience.
- Debt consolidation frequently involves inviting an unknown third party into your personal finances. That third party may or may not have a thorough understanding of your situation and your best interests.
- Debt consolidation can have a severe negative impact on your credit score.
- The lower monthly payment that comes with debt consolidation means you will have to make payments for a longer period of time, which eventually adds up to more money.
Better Alternatives To Debt Consolidation
There are ways to take control over your debt without the dangers inherent in debt consolidation. At Powell & Majestro P.L.L.C., we can help you determine the best way to handle your debt given your unique situation.
If you have been harassed by a lender or collection agency, we can often help you pursue legal action that may result in the reduction or even elimination of your debt. We are frequently able to help our clients avoid bankruptcy in this situation.