Debt Consolidation vs. Settlement
Choosing the Right Debt Solution
Getting behind on your bills can have far-reaching consequences, such as creditor harassment, lawsuits and other legal actions taken by creditors to recover the money they are owed. When deciding what to do about your debts, consulting a Long Island bankruptcy attorney is often helpful. A bankruptcy lawyer can discuss all of your debt relief alternatives so that you can make the right choices regarding your finances. This includes both debt settlement and debt consolidation. The advantages of debt settlement include a reduction in the total amount of money owed a creditor that can range from 30% to 80%, the ability to pay off your debts faster, and reduced interest. The disadvantages are having to quickly pay off the settlement amount, and possible taxation of your cancelled debt. Debt consolidation benefits can include:
- Payment in full on smaller debts
- Less impact on your credit score than debt settlement
- Only one payment per month
- Reduced or eliminated accrued interest
Some of the drawbacks to debt consolidation include the larger consolidation loan almost always needing to be secured, and the inability to reduce the principal owed on unsecured debt.
Long Island Bankruptcy Attorney
If you are in financial trouble, attorneys at Blutter & Blutter can give you experienced and knowledgeable legal advice. They are a recognized law firm that has helped thousands of clients throughout Nassau, Suffolk, Queens and Kings counties achieve a debt-free life. The firm has a thorough understand of finance laws, and provides compassionate and highly qualified representation. Your lawyer will be accessible whenever needed, and you will never be passed over to a secretary or paralegal. The firm maintains a small office that enables them to deliver superior service to all of their clients, including those with difficult and challenging financial situations. They have great empathy for their clients, and work tirelessly to help them accomplish their goals. The firm is a member of the Nassau County Bar Association, NACBA, New York State Bar Association and New York State Society of Certified Public Accountants.
Contact a Long Island bankruptcy lawyer for professional and caring legal support if you are in financial trouble.