Tuesday, 2 August 2016

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.

Consolidation is very similar to chapter 13 bankruptcy, in that with both options, you get a financial plan that allows you to pay your debts. The main difference is that with bankruptcy your debts might be lowered and some might even be wiped, while with consolidation, you will have to make all the payments within the stipulated time.

Your credit score and gross income will also be looked at. If your credit rating is too low and the amount of debt you have incurred is more than double your gross income, you will not be considered viable for this option. Another thing they will check is whether you have been previously sued due to these debts. For a person who falls in one or all of these categories, then filing for bankruptcy is a better option.

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.

When you talk to different companies, you will get different payment options depending on your situation. There are people who can get loans, or use their homes as equity, in order to make the payments. However, some loans may have exorbitant interest rates, and should only be used as a last resort. If you have a life insurance policy or even a government retirement plan, you might be allowed to borrow money from here.

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.




About the Author:



No comments:

Post a Comment