Advantages of Debt Consolidation
Debt consolidation plans help many people get back on their feet financially because they offer a way to organize your overwhelming debts to be far more manageable. Unsecured debt, or debt not linked to any assets, can be combined in a debt consolidation plan so you are ultimately making one single monthly payment, rather than multiple. Examples of unsecured debt include credit cards, credit lines, store cards, and unsecured personal loans. If these separate accounts are handled through one organized account, you may be in a better position to control and pay off your debt.
Benefits Associated with Debt Consolidation
One advantage of debt consolidation as a debt management strategy is the protection of your credit rating. Bankruptcy is a matter of public record and can substantially lower your credit score. Debt consolidation, on the other hand, will not go on your public record. In fact, consolidating debts may make you more capable of reducing your debts and thereby improve your credit score. If you choose a debt consolidation program for yourself, you will be in a better position to:
- Protect your credit score
- Maintain your line of credit
- Simplify your debt management
- Lower your monthly payments and interest rates
Debt consolidation plans can stretch payments out over longer periods of time and immediately lower your monthly payments. However, it is important to remember that debt consolidation is merely shifting your debt, not eliminating it.
Contact a Cincinnati Debt Consolidation Lawyer
If you think consolidating your debts might benefit your financial situation, an experienced debt consolidation lawyer at Ryan J. Ruehle, LLC, can help you take the next step to better secure your debt free future. Contact us at (513) 621-0999 today to learn more.