After making a few major purchases, opening several different credit card accounts, or experiencing unforeseen and costly events, you may find yourself facing a mountain of debt with seemingly few options for resolving it. When an individual encounters financial woes, the effects can be devastating to not only that person, but his or her family as well. Luckily, there is a tactic that you may be able to employ to help manage some of these expenses: debt consolidation.
Potential Downsides of Debt Consolidation
Though debt consolidation might seem like a “quick fix” to your problems, consider the following hardships you may encounter:
- High interest rate over other loans
- Loans are based on risk, so you may not be able to receive the consolidation or, as stated before, your interest rates may be high
- You may not be able to put every debt in the consolidation loan. This means that you may still be responsible for other bills.
- Length of loan may be for a shorter amount of time. Longer loan payoffs are more risky for lenders.
- You may incur new debts while paying off the consolidated loan, which will add to your financial burden.
Though you may feel as if there are few options when facing monetary troubles, understand that there are legal professionals who specialize in this form of law and can help make sure you are treated fairly by lenders and creditors and can help you should you decide to pursue a bankruptcy claim. The best way to learn about your choices is to speak with a Milwaukee debt negotiation attorney today.
Debt consolidation means combining all of your outstanding debts into one relatively easy-to-pay monthly bill. That way, you do not need to keep track of several different accounts, but rather only one. If you are facing debt and need legal assistance, contact the Milwaukee bankruptcy lawyers of the DeLadurantey Law Office, LLC at 414-377-0518 today.