How to Effectively Consolidate Debt in Suffolk County, NY
When the people of Yaphank, NY are in over their heads financially, there’s only one person they call: Richard S. Feinsilver, Esq. of Your Long Island Bankruptcy Lawyer. For more than 25 years, Mr. Feinsilver has been helping the residents of Suffolk County get out from under their debts and get back on track financially. He has successfully helped more than 7,500 clients throughout the Yaphank, NY area settle debt, and he can do the same for you! When you choose Your Long Island Bankruptcy Lawyer for your debt management needs, you can have confidence knowing that you’ll receive the very best of care.
In this economic climate, more people than ever are struggling financially. They’re living paycheck to paycheck and to make ends meet, they often turn to credit cards to get through.
While credit cards may be a short-term solution to your financial woes, they can end up causing long-term problems that can be extremely difficult to overcome. If you have multiple credit cards and you’ve reached or are about to reach their limit, there’s no doubt you’re in over your head. Is there anything you can do to relieve your financial situation and come out on top? There is, with debt consolidation.
When you consolidate debt, you combine several credit card balances into one monthly payment; ideally, that monthly payment has a lower interest rate than the amount you’re currently paying on your individual credit cards. If done right, debt consolidation can help you avoid more serious options, such as debt settlement, which could ultimately damage your credit and put you in a more serious financial situation than you’re already in; not to mention the fact that it doesn’t always work.
There are several ways you can consolidate debt, and below, we share some of the most common options.
Transfer Your Balances to a Single Credit Card
One of the most popular methods of debt consolidation is using a balance transfer credit card. This strategy involves obtaining a credit card that offers a 0% introductory rate on balance transfers and paying down the principal balance on the new card before the introductory rate expires.
The benefit of a balance transfer credit card is that you can potentially avoid paying any interest on the balances you transferred, which could help you save a lot of money in the long run and pay down your debts faster. However, there is a downside; because the introductory period is limited, if you fail to pay off the amount you transferred to the credit card before the 0% APR expires, interest will be tacked onto any remaining amount left on the card. Often, the percentage rate on balance transfer credit cards is astronomical after the promotion expires, so you could end up paying a lot more in the long run.
Another con: you might have to pay a balance transfer fee, and that fee can be pretty high. Furthermore, the amount you transfer over to the card (including the fee that you may be charged) cannot exceed the card’s credit limit, which might not be enough to pay down all of your existing credit card debt.
Take Out a Personal Loan
Another way to consolidate your debt is with a personal loan. If your credit is good, you might be able to secure a low-interest rate and use the money from the loan to pay off your credit card balances. Instead of having to pay multiple credit card bills, you’d only have to focus on paying one payment, and if the interest rate is lower, you’ll be able to pay more toward the principal balance.
There are some downsides to this option, however. First, you need to meet the lender’s eligibility requirements, and in many cases, those requirements are pretty stringent. Second, if your credit isn’t in good standing, the interest rate may be higher than the rate you’re paying on your credit cards. Lastly, many Suffolk County lenders charge origination fees for personal loans, and those fees can significantly increase the principal balance of the loan.
Ask Family or Friends for Help
If you have a trusted friend or family member who’s in good financial standing, you might consider asking them for a loan. If you opt for this method, you probably won’t have to meet stringent eligibility requirements and your credit won’t be affected because you aren’t formally opening a new line of credit. Plus, the repayment terms may be more favorable than the terms you’d receive from a credit card company or Suffolk County financial institution.
Before you go this route, however, you do have to consider the cons. Mixing personal relationships and finances can lead to disastrous results; unfortunately, it can lead to feuds and end up destroying your relationship. Furthermore, if you can’t repay the loan in a timely manner, there’s a chance that you could end up putting your friend or family member’s finances in danger.
Chapter 13 Bankruptcy
If you really want to wipe away all of your debts and start fresh, Chapter 13 bankruptcy may be the best debt consolidation tool for you. While there is a stigma associated with bankruptcy, in reality, it’s extremely common and the effects aren’t as damaging or long-lasting as you many people would have you believe.
With Chapter 13 bankruptcy, you can successfully wipe out all of your credit card debt, as well as other types of unsecured debt you may be carrying (personal loans, medical bills, utility bills, etc.), and even secured debts (car loans, etc.). You’ll work with an attorney you will guide you through the process and who will assist you with developing a strategy that can effectively help you rebuild your finances and avoid future trouble.
For Expert Debt Consolidation Advice in Suffolk County, Contact Your Long Island Bankruptcy Lawyer Today!
If you’re interested in learning more about how you can get out from underneath a mountain of debt and you’re wondering if bankruptcy might be the right option for you, reach out to Richard S. Feinsilver, Esq. of Your Long Island Bankruptcy Lawyer today. Together, you can review your financial situation and determine which option is the best for your specific financial needs.
With the help of Your Long Island Bankruptcy Lawyer, you can put an end to your financial troubles. To schedule an appointment for a consultation at our Yaphank office, please call 516-873-6330 at your earliest convenience.
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