If you are facing aggressive creditors and mounting debt but wish to avoid
bankruptcy, you may be able to seek an alternative solution. In some situations,
combining debt can make repayment more manageable, and could help you
settle your financial issues more quickly and efficiently. Whether you
owe money for unpaid medical bills, credit card debt, private student
loans, or personal loans, debt consolidation could prove an effective
answer to your problem.
Depending on your income, assets, employment, as well as the type and amount
of debt you are facing, you may have a few different debt consolidation
options. There are a few different ways to consolidate debt in Florida,
including through additional loans, credit cards, or negotiations.
Through a debt settlement, it’s possible to work with one creditor
to configure a payment plan or settlement to reduce the payments or overall
amount owed. Also called debt arbitration or debt negotiation, debt settlement
usually involves hiring a debt negotiation team who will reach out to
creditors on your behalf, seeking to reduce or modify your debt balances.
The types of debt that could be negotiated include credit card debt, auto
loans, personal loans, and medical bills. The creditors must then agree
not to pursue the remaining outstanding debt, once an agreement has been
Another option is to take out a debt consolidation loan. A loan can allow
you to pay off all existing debts through one concise payment each month.
Making payments to a single lender could be easier to manage and may decrease
your monthly fees. Or, rather than consolidating through a loan, you may
consider a low-interest credit card. Many credit card companies organize
promotional offers for first-time users, which could provide you with
a very low interest rate. Then, much like with a loan, you would only
need to plan a solitary monthly payment.
You may also consolidate with a home equity line if you have good equity
in your home. This could significantly decrease your interest rate, and
might even be tax-deductible. Borrowing against equity should be carefully
considered, however, because defaulting on the equity line could provide
the lender with authority to repossess the property. This option is best
chosen only when you are certain you will be able to meet the monthly
payment requirements, or you could lose your home.
For individuals looking to avoid bankruptcy and save their credit, a form
of debt consolidation could be an effective solution for mounting financial
duties. Should you wish to discuss your debt relief options, our attorneys
at Albaugh Law Firm are ready to help. With offices in Jacksonville and
Saint Augustine, our Florida firm is focused on helping our clients protect
what matters most.
For a free consultation, contact Albaugh Law Firm,