Tuscaloosa Debt Consolidation Attorney

Are you considering debt consolidation to get relief from overwhelming debt? Undoubtedly, you have heard or seen advertisements for companies that promise to help you consolidate your debts into one manageable monthly payment. While working with them can be useful, it is important to understand the process and potential consequences before you trust your finances and future security with a debt consolidation company.

I am Attorney Marshall A. Entelisano, and I am here to help you explore your debt relief options. I have over 25 years of experience helping Tuscaloosa residents achieve financial freedom through debt consolidation, bankruptcy, and other avenues. If you are considering consolidating your debts, please contact my office for a free consultation to discuss your specific situation.

To speak with a dependable Tuscaloosa debt consolidation attorney, call (659) 336-2597 or connect with my firm online.

Defining Debt Consolidation 

Debt consolidation is a financial strategy in which you combine multiple debts into one. This can include credit card debt, medical bills, and other unsecured loans. By putting these together, you can often reduce your overall monthly payments and interest rates, making it easier to manage your finances. Often, you will work with a debt consolidation company or an attorney to create an individualized payment plan. 

Pros of Debt Consolidation

In certain situations, debt consolidation can be highly advantageous. Some of the upsides include:

• Simplified payments - Instead of juggling multiple monthly payments, you can focus on making one payment
• Lower interest rates - By combining all your debts, you may be able to secure a lower overall interest rate
• Reduced monthly payments - With a lower interest rate and potentially longer repayment terms, your monthly payments may be more manageable
• Avoiding bankruptcy - Debt consolidation can be a viable alternative to filing for bankruptcy

Cons of Debt Consolidation

While debt consolidation has many benefits, it is not always the best solution for getting rid of debt. Plus, many debt consolidation companies use practices that can cause more harm than good. 

Below are further details:

• High fees and hidden costs - Debt consolidation companies charge significant fees or ongoing service charges (e.g., processing and maintenance fees), which can cut into the funds you have available to pay down debt
• Misleading promises - You may be assured that a company can drastically reduce or eliminate your debt, only to find that this is not the case for your specific kind of debt(s)
• Longer repayment periods - While lower monthly payments can make it easier to manage your debt, stretching out your repayment terms can cause you to pay more interest over time
• Not an option for secured loans - Debt consolidation typically only applies to unsecured loans, such as credit card debt
• One-size-fits-all approach - Debt consolidation companies frequently push standardized plans that do not account for individual circumstances