Debt Consolidation

Are you considering debt consolidation? Be aware that this may not be the best course of action.

A debt consolidation loan may push you further into debt. It’s important to know that a debt consolidation plan is voluntary for your creditors. They can decide to stop participating at any time!

What Is Debt Consolidation?

If you find that the majority of your debt is from credit cards, it is possible that you are considering a debt consolidation loan. These are offers that combine several unsecured debts into one payment, potentially with lower interest rates.

The truth is that debt consolidation loans promise one thing but deliver another. In fact, dishonest companies that promote debt relief programs like these continue to be a top consumer complaint received by the Federal Trade Commission.  Here are some things you should consider:

  • Debt consolidation doesn’t mean debt elimination – These kinds of loans only restructure your debt. In most cases, you are exchanging a lower monthly payment for a longer payment period. This means that you are paying more money over a longer period of time.
  • The interest rate on the consolidation loan can change – This applies to credit card transfer offers that start as a low introductory rate, but after 90 days it jumps to a higher rate. Some of these offers provide no recourse either.

Don’t fall for claims of “fast” or “easy” debt consolidation.

There may be better alternatives.

Why Chapter 13 Bankruptcy Is The Best Choice

  • It will protect you from creditors while you pay off your debts
  • It will protect your property from being seized by creditors
  • It allows you to have control over the terms of the loan, not your creditors
  • The repayment periods are controlled
  • Some debt may be discharged after the repayment period is over

Debt Consolidation Loans Are Not The Answer

Don’t let the stigma of bankruptcy deter you. If you are overwhelmed by credit card debt, contact Toscano & Wilson. We will assess your situation and give you some manageable options that will save you money in the long run.

Contact Us

The legal experts at Toscano & Wilson understand what you are going through. Bankruptcy may seem like the end, but the truth is it is simply a new beginning. Through competent and compassionate legal representation with Toscano & Wilson, things can only get better. Give us a call, tell us your story, and start to feel better about your financial situation.

  • The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, messages, and emails. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until an attorney-client relationship has been established.

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