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What is Debt Consolidation?

Debt consolidation is a tool to help you get your financial life organized. It can prevent more serious financial problems, but it is not for everyone. Some people’s financial struggles are beyond consolidation and others are facing problems that will not be helped by consolidating debt. Understanding the process of debt consolidation and what it is intended to accomplish helps you determine if it is right for you.

Debt Consolidation Should Not Increase Your Debt

Consolidating debt should not require you borrowing more money. Instead, you are reorganizing what you currently owe and arranging new terms by which to pay back the lenders. Once you have consolidated debt, it should not be larger than where you began. As a matter of fact, over time, debt consolidation should save you money on what you owe because you can lower the interest rate on the loans when you consolidate them together. Consolidation can also help you avoid late penalties and other fees you might encounter with multiple credit cards. The goal of debt consolidation is to organize debt, make monthly payments manageable, and avoid more drastic measures.

There is such a thing as a consolidation loan. An example of a consolidation loan would be if a homeowner borrowed against his or her house to pay off credit card debt. There are advantages to this and it allows you to organize payments and can reduce what you owe overall by compiling debt into one loan with a single interest rate. However, it requires you take out a new loan to pay off the old debts, so not everyone will qualify for a consolidation loan.

On the other hand, debt consolidation is not a loan. You are not borrowing money from a new lender and paying off old ones. You are combining the money you owe to current lenders and continuing to pay those debts, but with lower, more controlled amounts.

Is Debt Consolidation Right for Me?

Unfortunately, not all debt consolidation programs are equal and there are many out there that are downright scams. It might seem as if you are getting things under control and taking charge of your financial life, when it reality, you are postponing a catastrophe.

Debt consolidation is not the best solution for everyone, but to know this, you must understand all of your options. Working with an experienced bankruptcy attorney can help you understand what you can do to get your financial life under control and eliminate the burden of crushing financial debt. You might discover consolidation is the right option for you or you might be better off filing for bankruptcy. Regardless which choice you make, it is important to work with someone who understands the laws and rules governing credit, lending, bankruptcy, and consolidation.

Are you facing financial struggles? You are not alone. The Law Offices of Robert M. Geller, P.A., can help you get things under control. Call us today at 813-254-5696 to schedule a free consultation.

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$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
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$Law Offices of Robert M. Geller, P.A.
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(Wells Fargo Financial Center)
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St. Petersburg, FL 33701
T: (727) 532-3939


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23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320





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At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.