' What is Debt Consolidation? - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

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.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Does Bankruptcy Clear Attorney Debt?

Filing for bankruptcy is a complex process that often requires the expertise of a bankruptcy attorney to navigate successfully. However,...
Read More

What to Ask a Bankruptcy Attorney?

Deciding to file for bankruptcy is a significant and often emotional step, and having the right legal guidance is crucial...
Read More

How Can I File Bankruptcy with No Money?

Filing for bankruptcy is often seen as a last resort for those overwhelmed by debt. It's a step that provides...
Read More

What Does the Bankruptcy Trustee Investigate?

Filing for bankruptcy can be a daunting process, filled with complex legalities and numerous requirements. One key figure in this...
Read More

Can You Make Too Much Money to File for Bankruptcy?

When people think about bankruptcy, they often envision individuals who are completely destitute and unable to meet basic financial obligations....
Read More

Can You File Bankruptcy with Equity in Your Home?

For many individuals facing financial hardship, their home represents their most significant asset. However, when struggling with overwhelming debt, the...
Read More

Are Trusts Protected from Bankruptcy?

Trusts are powerful estate planning tools. They allow people to protect and distribute their assets according to their wishes. This...
Read More

The Truth About Bankruptcy and Buying a Car

The Truth About Bankruptcy and Buying a Car Bankruptcy often carries a stigma of financial ruin and a bleak future....
Read More

How Do Bankruptcy Lawyers Get Paid?

Bankruptcy can be a stressful and overwhelming experience, but having the right legal representation can make all the difference in...
Read More

Do You Lose Your Home When You File for Bankruptcy?

Filing for bankruptcy can be a daunting prospect, especially when it comes to concerns about losing one's home. Your home...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

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

Map And Directions