Wayne County Debt Consolidation Lawyer
What is Debt Consolidation?
Debt consolidation is one way to seek relief from debt. The overall idea of this method of relief is that you will acquire one large loan to pay off all your smaller loans. The point in doing so is that your payment terms on the larger loan will be better. This can mean that the interest rate is better and you will end up paying less in the long run or a reduced monthly payment. There are many benefits to consolidating loans but it is important to discuss your case with a skilled bankruptcy lawyer in Wayne County to be sure it is the right option for you. Some of the benefits of debt consolidation in Michigan include:
- Only having to make one payment each month
- Having a reduced interest rate
- Avoiding penalties and late fees
- Having reduced monthly payments
- Halting creditor harassment calls
- Avoiding bankruptcy
Another possible gain from debt consolidation would be a boosted credit score. Many assume that pursuing this relief will hurt your credit score, but in actuality it can help. When on a debt consolidation plan, your debts are being paid on time which can improve your credit score. Credit scores can decrease when you are late on payments or miss payments, but a consolidation plan ensures that this does not happen.
Types of Debt Consolidation Loans in Michigan
There are several types of loans that are available to help you consolidate your loans. Three of the most popular include:
- Second Mortgage Loans: mortgage lenders often offer this type of loan in order to give you the money you need for debts. Essentially you will be taking out another mortgage to help repay other debts. You will need to have up-to-date payments on your first mortgage to qualify for this type of loan.
- Simple Signature Loans: this type of loan is offered to debtors that have a decently good credit score and you do not need to provide collateral for the loan.
- Collateral Loans: this type of loan is offered to debtors that have a lower credit score and cannot qualify for the signature loans. With a collateral loan, the debtor will be required to provide collateral that will protect the lender in the event of a default on the loan.
To discuss the various types of consolidation loans, discuss your situation with the lawyers at Bryant Logan Law Group, PLC. We can walk you through the debt consolidation process and help you pick the best loan option for your needs.
Pursuing Debt Consolidation in Wayne County
There are three different ways to consolidate your debts. The first is to sign up with a debt consolidation program. This would involve an organization analyzing your situation and put you on a program. The organization will generally negotiate with your creditors to put you on the best plan for your situation and set up the plan. You would then make your payments with the guidance of the debt consolidation program. Another option is a debt consolidation loan. This involves taking out a loan with a lower interest rate and paying off your other unsecured debts, leaving you with one payment to make each month. The last option is a credit card balance transfer, this would be a relief for your credit card debts only. You can receive a low- interest credit card and then transfer your other balances from other cards onto the new one. You would then only have one single debt with lowered interest and payments.
Bryant Logan Law Group, PLC Can Walk You Through Debt Consolidation
If you are interested in debt relief through debt consolidation, contact an attorney in Wayne County. Our firm has more than 50 years of experience helping clients through their financial hardships and we can help! Call our firm today to set up a
free case evaluation!