In the first article of this series, we discussed the pros and cons of consolidating debt through home equity lines, lines of credit secured by personal residences, and zero interest credit cards. In this article, we will take a closer look at debt consolidation loans and the pros and cons of such loans for you. As always, we encourage debtors to learn the general benefits and drawbacks of a potential debt consolidation method and to call an experienced Minneapolis debt consolidation lawyer before making any decisions about their financial futures.
Debt Consolidation Loans – Good Options for Minnesota Debtors?
A debt consolidation loan does just what its name suggests. It takes all of your individual debts and puts them together into one debt. Perhaps the biggest benefit of a debt consolidation loan for Minnesota debtors is that instead of many smaller payments you simply have one payment to make each month. It is this simplification that many debt consolidation companies will use to try to lure you in to taking out a debt consolidation loan.
However, simplification is not the only part of the story that you should know. Debt consolidation loans are not an answer to your debt problems. They do not make debts go away and there may be a high interest rate on debt consolidation loans. At best, a debt consolidation loan is a way of managing debt. It is not a way to get rid of debt.
Contact a Minneapolis Debt Consolidation Attorney to Learn More About Your Financial and Legal Options
If your goal is to get rid of your personal debt, then it is important to contact an experienced Minnesota debt consolidation attorney as soon as possible to discuss your legal options for debt reduction. You can reach the experienced lawyers at the Rosenzweig Law Office today by calling 952.388.2942 or 1.800.619.8991 today.
We also invite you to learn more about bankruptcy as one option for reducing your debt by downloading a FREE copy of our book: What You Need to Know About Filing Bankruptcy in Minnesota.