Phoenix Debt Consolidation
Debt consolidation and debt settlement are not the same thing. As lawyers, we recommend debt settlement.
When you are facing difficult decisions about how to deal with debt, it is easy to be confused by similar terms. At McCarthy Law, we want you to understand all the options available.
- Depending on your specific circumstances, debt settlement may be the right solution for your financial problems. We can guide you through the process.
- For some clients, bankruptcy may be the answer. An attorney at our firm will help you determine if that is the right option for you.
- There is no situation in which debt consolidation is the right option.
Debt Consolidation Phoenix – What is debt consolidation and why isn’t that a good choice?
In debt consolidation, all your unsecured debts are added up and then you will be given a single monthly payment. The person handling the debt consolidation will take your payment and divide it among your creditors.
What is wrong with that? In an Arizona debt consolidation, when your debts are added up, all the inflated high interest and penalties will be added in, too. That makes your total debt higher than it should be-and it will take more money and time to pay it off. Additionally, your credit score is still negatively impacted due to late payments and your credit card company still cancels the credit cards you consolidate.
In debt settlement, your attorney will negotiate the pay-off amount with each creditor. In those negotiations, the focus is on the principal – the money you actually charged on your credit cards. We negotiate to remove high interest rates, the compounded interest that has built up over time and the late fees over-limit fees.
Debt Consolidation Arizona – Learn more in a free consultation with a Phoenix attorney.
There is no pressure at McCarthy Law. We will take the time to explain your options so that you can make the right choice for you and your family. Our Arizona attorneys will recommend what is in your best interest based on your specific circumstances. Contact us for an appointment.