Boca Raton Debt Consolidation Lawyer
Are you currently behind on multiple credit cards? Have you recently dealt with a sudden emergency that exhausted your savings? Do you no longer see a way to manage your outstanding debts? If your answer is “yes” to any of these questions, you need to speak with a qualified Boca Raton debt consolidation lawyer.
At Nowack & Olson, we help Florida residents such as yourself overcome their debt problems. We can review your present financial situation and explain all of your options for consolidating or eliminating your debt in a timely manner. We will never pressure you into bankruptcy or any other specific options–the choice is always yours. Our role is to serve as advisers and advocates for you.
What Are the Risks of Debt Consolidation?
Unsecured debts like credit cards tend to have high rates of interest and punitive fees. This often makes it impossible for you to make a serious dent in your principal. And if you are carrying debt on multiple cards, you may be paying more each month only to find your balances keep increasing.
In this situation, debt consolidation may seem like a welcome option. Typically, debt consolidation means taking out another loan that is used to pay off your existing creditors. Then you are left with just the single consolidation loan to repay.
In theory, debt consolidation simplifies your debt management. But in practice, you can actually end up paying even more. Not only is the single monthly payment often unaffordable, the consolidation lender charges additional fees that may be as high as 25 percent of your total outstanding debt.
Other debt consolidation options carry similar risks. Refinancing your mortgage can obviously leave you homeless if you fall behind on payments. And tying a consolidation loan to a secured asset, such as a life insurance policy, can negatively impact your family’s long-term financial security.
What Are My Alternatives to a Debt Consolidation Loan?
The truth is that debt consolidation is never your only option for taking control of your debt situation. Some of the alternatives we can assist you with at Nowack & Olson include:
- Chapter 7 bankruptcy– If all or most of your debt is unsecured–and you have little or no assets to your name–a Chapter 7 bankruptcy is often your best choice. Chapter 7 liquidates whatever non-exempt assets you may have and then discharges any remaining debts. This means you can walk away with a “clean slate” and not have to worry about making any further monthly payments.
- Chapter 13 bankruptcy– If you have a regular income or substantial assets, a Chapter 13 bankruptcy allows you to reorganize your debts under court supervision. In Chapter 13 you make a single monthly payment, but to a court-appointed trustee rather than a for-profit lender. This enables you to repay your debts over a period of 3 to 5 years while keeping your home, car, and other assets.
There is no one-size-fits-all approach to debt consolidation. Ultimately, you need to pick the option that works for you and your family. But we can help you make an informed decision. Call Nowack & Olson at 561-463-2265 to schedule a free confidential consultation with one of our Boca Raton debt consolidation lawyers today.