Smart Strategies for Weston Debt Consolidation and Debt Settlement

Debts can cause incredible stress levels, especially if your monetary situation is bad enough to have severe repercussions. If you get regular calls from debt collectors, face foreclosure, or consider bankruptcy, you already understand how scary things can get. 

The marvelous thing is that there might be a different solution for you; Debt consolidation may help you overcome money troubles, but it is not appropriate for everybody. And, unfortunately, some debt consolidation firms are prey to desperate customers.

How Debt Consolidation Can Rejuvenate your Financial Management Toolbox

Paying down debt in the coronavirus economic downturnIt allows you to consolidate, which means combining multiple debt obligations into one debt by seeking a new loan first to pay your credit card debt. Instead of paying off several different debts at different interest rates, you can pile them together into a single loan at a one, lower interest rate. Usually, this rate is on the lower end and generally fixed. 

The new loan may rely on your assets, in which the collateral is most commonly your home equity, or it may be unsecured. Among the efficient methods to use weston debt consolidation is when you hold a high credit card debt on multiple variable interest rate cards. Consolidating helps you to merge multiple credit card debts into one loan, helping you focus on reducing the debt rather than just treading the water.

Benefits of Weston Debt Consolidation

  • Your monthly premium is likely to be lower, but over time you will be paying more.
  • You’ve only got to spend on one lender, your debt consolidation creditor.
  • You’re probably not going to get a collection call.

Cons of Debt Consolidation

  • With time, you end up spending more because debt consolidation increases payment time. After all, payment terms increase the amount of time you pay. You pay a small amount each month, but more in the long run, but if you have a penalty-free prepayment option, you could go with that.
  • You might not lower your interest rates. High-interest rate cards first need to be cleared to make debt consolidation useful due to lower interest rates.
  • It is also essential not to get into more debt until your consolidation loans have paid off your credit card debt. It might feel nice to have the credit open, but if you’re committed to changing your financial condition, the last thing you have to do is use the cards.

Smart Strategies for Weston Debt Consolidation

You can consider other options, such as Chapter 7 Bankruptcy, before taking out a Weston debt consolidation loan. After bankruptcy, you will be able to cancel all of your loans and save hundreds of dollars that you will then use for future investments. Another alternative will be to resolve the debts on an individual basis with an attorney’s debt settlement firm. 

Debt Settlement Agreement

How Debt Consolidation WorkThe following simple regulations should be adhered to in a Weston debt settlement agreement:

  • It must be in writing
  • Free you from your outstanding debt
  • Must be signed

A legitimate debt settlement agreement can be used to show that you don’t owe any more money after you pay the settlement. This is crucial, and many lenders may not be able to offer it without persistence. Generally, the debt collection litigation is disregarded without prejudice by the lender without paying them something and settling with prejudice before the case proceeds to trial.

If a settlement cannot be achieved, the case will be brought to trial, and the court may grant a full balance decision to the creditor or take no decision based on the evidence. 

If the lawsuit is dismissed without prejudice, the creditor will once again sue you for the debt. Also, the debt is already on the credit history, and it’s not going anywhere.

Must be in Writing

Essentially, you might have an “oral understanding”, but nobody does it, and it’s not recommended. Settlement deals must be in writing if you want some guarantee that the loan is going to vanish.

Collection Agency Scams

A legitimate settlement arrangement must obtain any settlement. We have ample expertise in the negotiation of valid arbitration settlements. Many creditors will apply for a fee and say that they will give you an offer after you pay. Yeah, that’s a common scam. 

Reach Out Today

Encompass Recovery Group has over 37 Years of cumulative experience, our Debt Recovery Team will get you the outcome you require. We have proactive Debt Settlement Solutions and by partnering with the lenders, we have earned the experience and leverage we need to have the best deal possible. 

References and Resources

Credit Card Debt Consolidation

The Chapter 7