Everyone takes a loan once in their lifetime to complete their needs. And, sometimes, people are unable to repay it on time, which leaves them debt-ridden. It is no good situation to be in, and something needs to be done as soon as possible to not get trapped deeper into this debt quagmire. The main question here is what can be done?
Debt consolidation is one of the many options for consumers who are struggling with a lot of debt. It can provide significant financial security and flexibility. And a debt consolidation lawyer of Miami can help you along the long way.
What is debt consolidation?
Before getting further, let’s have a closer look at debt consolidation. It is a practice of consolidating many debts into a single bill. It is used to roll many high-interest debts into one manageable debt. It reduces the struggle to deal with a number of creditors and can buy buyers additional time to reduce the debt amount, thus relieving the debtor’s monthly burden.
There general approaches to debt consolidation include the following:
Debt consolidation loan
If your credit is good, you may be able to get a favourable debt consolidation loan. It is a single loan used to repay other debts. For example, the debtor can use this loan for repaying credit card bills, medical bills, and car payments. The consolidation loan has a lower interest as compared to the pre-existing debts. The loan can be secured by personal property, or it can be unsecured. Unsecured loans might have higher interest rates.
Credit card
Credit card debt consolidation is useful when a debtor’s debt is split between various credit cards. The debtor uses a new “balance transfer” credit card and uses it to pay off the older cards. The new credit cards offer promotional rates, with no interest for the initial year. It can be beneficial if the debtor can catch up with the payments in a short time.
Things must be known for hiring a lawyer
If you decide to take the help of a lawyer, you need to find one and then know about the hiring procedure. You must know what you are paying for. A lawyer helps you in handling the whole negotiation process until the very end.
Finding the right attorney for yourself is not usually very difficult if you have a good internet connection. You can also find several advertisements in print media. Your primary task is:
- Select a large number of potential candidates
- Interview them and compare conclusions
- Find the ratings given to each candidate by the previous customers.
- Have a look at the references, like the publications, public speeches, or scientific papers.
- To check the lawyer’s ethics and history, look through the state’s bar website.
Many debt consolidation lawyers offer the customers free consultation that can be counted as an interview. Even if a lawyer takes a fee for the consultation, the services must not be immediately discarded.
The pricing policy of the lawyer
The price or fees charged by a debt consolidation lawyer depends on many factors and can fluctuate. The cost revolves around the following factors:
- Size and type of the debt you are in
- The difficulty involved in debt repayment
The amount of money depends on the work done. The charges may come in the following types:
- Hourly pay
- Fixed fee for the lender
- A commission that depends on the debt size
When does a lawyer increase the fee?
The lawyer can decide to increase the fee in the following conditions:
- The creditor files a lawsuit
- If the creditor has received a judgment against you
- When you want to change the secured debt terms like a car loan or mortgage
Hiring a debt consolidation lawyer can greatly work in your favour as they have the right skills required for the process with years of experience.
