Tips For Someone Considering Debt Consolidation Las Vegas

By William Kelly


Nobody likes owing other people money but sometimes, it is unavoidable. This is made worse if you are a serial shopper, or tend to spend more money that you actually have. In order to control this situation, you should consider getting debt consolidation Las Vegas. This will allow you to put together all your debts and pay them off in a specific period of time. However, if you are thinking of taking this option, there are some things you need to know.

When it comes to offering financial solutions, different situations will call for different forms of action. If you owe creditors money and this money was given to you without requiring collateral, then you qualify for this option. However, things like child support, alimony, or parking tickets cannot be paid off this way, regardless of them being unsecured.

You also need to look at your financial situation very carefully. Normally, the payment plan you will be offered will allow you to pay the creditors in a period ranging anywhere from six months to five years. This means that you need to have a steady source of income, in order not to miss payments.

This option is different from chapter thirteen bankruptcy because you will pay off all your debts eventually. However, you might notice that this might still affect your credit rating. This might make some lenders wary of you and might make it difficult for you to attain loans, or mortgages for a while.

People who have credit scores lower than six hundred and twenty, have been sued by their creditors, or if the amount of money you owe people is more than double what you make in a year, then you should simply consider filing for bankruptcy. This will give you more time to rearrange your finances, and some of your cash balances might be forgiven.

If after visiting a financial counselor, you both agree that this is the best option for you, you will have to change your spending habits. This in most cases will mean, focusing only on your basic needs, in order to attain financial freedom. You will also have to stop using the credit cards, and may only have one for emergency use only.

There are a number of ways you can get the money you need, with some options being more favorable than others. You can get a zero interest credit card, a consolidation loan, or even borrow from your life insurance or retirement benefits. In all these cases, the monthly payments you make will be distributed to all your creditors until you clear all the balances. Most counselors will advise against home equity loans, especially if you are not very confident you can make all the payments on time.

The best option to use to clear this debt is to use the money you already have, or are getting monthly. This way, you will not be digging yourself into a bigger hole. There are a number of companies, which can help you come up with the right plan, but you have to go with someone who seems competent, and who you get along with.




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