Put simply, debt consolidation just means converting a whole bunch of debts into one giant debt. Doing so gives you a lower interest rate, lower monthly payments, and a simplified payment plan. The problem is that you might stay in debt longer and actually pay a bit more with debt consolidation. This is why it is wise to analyze your situation with a professional and lay out all of the options on the table. Obryan Law Offices has helped thousands of people settle their debts and get their lives back in order. If you are considering debt consolidation in KY, we can help you too!
With that said, there are a lot of upsides regarding debt consolidation. One of the most noted benefits is that debt consolidation allows you to pay off your debts at a rate you can afford and without declaring bankruptcy. Instead of managing a few high-interest loans like credit cards, people can consolidate their debts using a personal loan with a lower interest rate to satisfy their debts.
Benefits of Debt Consolidation
For many people, in addition to avoiding bankruptcy, one of the best benefits of debt consolidation is having lower payments each month. By using a personal loan to pay off other high-interest rate loans, you spend less on interest payments every month, and you reduce how much you spend over the lifetime of a loan. It also makes things easier to mail. Instead of writing multiple checks to different financial institutions, you write one.
The Downsides of Debt Consolidation
Obryan Law Offices helps people all over the state of KY with financial difficulties. Just know that if you're using national debt relief, debt settlements and debt consolidation don't work as often as you'd like to think. As bankruptcy lawyers, Obryan Law Offices frequently takes on clients who have tried debt consolidation, but it didn't work for them. The reason is usually that people commit to too much money for too long a period, and they underestimate how long of a slog it's going to be for them to get to the end of the rainbow.
Another thing that's rarely talked about is that when creditors think they're not getting paid enough, they're going to eventually file suit. When this happens, it kind of makes the whole debt consolidation crumble. Another crumby thing about debt settlements and debt consolidation is 1099. If you manage to pay off a creditor, you get a 1099C for the difference between what you paid them and what you owed them. Next thing you know, you have IRS problems.
Let's Discuss All of Your Options and Make the Best Choice
The key is to think everything through and sit down with a professional. Obryan Law Offices can give you a range of options to deal with your problems. Give us a call. We don't mind. We'll give you a free consultation. We'll help you figure out if you need debt consolidation in KY.Debt Consolidation Ky
View Larger Map