Five Things to Consider Before Hiring Debt Consolidation Companies
Debt consolidation companies offer a way for consumers to manage their debt by combining multiple debts into one manageable monthly payment. In this respect, a debt consolidation company hopes to do privately what a Chapter 13 bankruptcy does publicly (but the bankruptcy brings a more definite result).
However, it’s important for consumers to be aware of the potential risks and pitfalls associated with debt consolidation. Here are five things that consumers should watch out for when considering utilizing a debt consolidation company:
Conclusion: Always weigh debt consolidation options in light of the power of bankruptcy.
In conclusion, debt consolidation can be a useful tool for managing debt, but it’s important for consumers to be aware of the potential risks and pitfalls associated with this option. Bankruptcy can guarantee a fresh start (with certain caveats). Consumers should carefully consider the fees, repayment terms, impact on credit score, potential for scam companies, and limited debt relief before utilizing a debt consolidation company rather than paying the debts or filing for bankruptcy. In addition to consulting a financial advisor or debt consolidation counselor, it is always a wise choice to consult an experienced bankruptcy attorney before making any significant decisions regarding bankruptcy or debt consolidation.
If you have questions about your debt situation, call the attorneys at Cornerstone Law Firm for a consultation about your need for debt relief.