Debt Consolidation Los Angeles, CA
Those needing Los Angeles debt consolidation can find assurance in the experienced lawyers at Brownstone. Backed by decades of service in helping people with financial burdens, our attorney’s are equipped to help consumers who are struggling to pay their debts and regain peace of mind. Are you trying to select the best company in LA? Read more to learn how we can help you.
Choosing Debt Consolidation in Los Angeles
Residents have traditionally had more options when it came to resolving their unsecured bills. While personal bank loans used to make up the majority of lower monthly payment options, the credit crunch has made it extremely difficult for anyone to qualify. This includes consumers with good and bad credit scores. With tighter loan-to-value on home equity loans, most debt consolidation in Los Angeles CA now happens through non-traditional means outside of the lending world. So how do people find remedy in their monthly payments today? There are a few ways which we’ll touch on below.
Credit Counseling: One form of debt relief LA residents are exploring is found via a non-profit consumer agency. This is known by many names, but in essence a 3rd party seeks debt consolidation by bundling your creditor payments into one monthly payment. This typically only works for credit card loans because it is made possible by a pre-arranged relationship that is facilitated by the non-profit. It’s important to note that “one” consolidated payment doesn’t necessarily mean a “lower.” In some cases, this new payment is often higher as some creditors aren’t as flexible in their arrangement. While this may seem appealing in terms of debt consolidation in LA, it’s not always the case. Some of these non-profits, who are widely known for accepting donations from the very creditors they are negotiating with on behalf of Los Angeles consumer, aren’t diligent in making timely distributions to your creditors. This can pose a problem for 2 reasons. First, this will damage your credit history. Second, your arrangement with credit card alone companies may revert back to you original interest rates plus added late fees if your consolidation payments aren’t made on time. This is some of the fine print that has caused people seeking help to look for better companies. Moreover, some have discovered better solutions altogether. This next debt relief option is becoming very popular, and you will see why next.
The Los Angeles Debt Settlement Option
If you’ve surveyed the financial debt relief landscape it’s sure you’ve encountered an age-old approach that has become known under a new name. What tool does this refer to? Debt Settlement is a program that many Los Angeles consumers are investigating, and for good reasons. If you can understand 2 concepts it will be easy to grasp how it works. Your creditors have an incentive to make money on the credit card debt they lend out, and this is known as interest. When a borrower experiences circumstances that makes it difficult to repay, their objectives change. At this point in time they have already collected interest on your principal balances, so they would like to recover as much of your original principal that was loaned to you. The second thing to understand is that most people do have a desire to repay what they’ve borrowed, but they often need help in a realistic repayment plan. works by establishing an amount that consumers begin saving towards while the urgency builds for their creditors who are no longer receiving monthly payments. Over time, a debt settlement company in Los Angeles CA establishes contact on your behalf to negotiate a “reduced” amount that is closer to the original balance loaned, and in some cases far lower. An agreement is negotiated between borrower and lender, and the debt is settled at that time. This program is best for people in LA struggling to make payments, and certain restrictions exist. So what are some of the downsides?
Debt Negotiation Requires Full Disclosure and Proper Servicing
We’ve just touched on some of the positive advantages to settling debts, but let’s take a look at some of the disadvantages as well. These are best understood in the context of participants struggling to make payments, and trying to avoid bankruptcy. When people fall behind in their payments, this obviously affects their credit rating. Debt negotiation in Los Angeles is no different. Because you are paying into a savings or escrow type account, your creditors aren’t receiving loan repayment and this is a negative mark. Additionally, some accounts can and will be closed which will further impact your FICO score while you’re working toward financial freedom. However, you will be assigned to a debt relief attorney in Los Angeles who is intimately acquainted with the laws, rules, and regulations that govern consumer debt. They will be available on your behalf to represent your interests, and can help you to negotiate your debts without having to file for bankruptcy. It’s important to note that a Chapter 7 or 13 will impact your credit report for 7 to 10 years. No Los Angeles debt relief option is without any potential downsides, so our staff believes in fully educating each client so they can make a wise decision with the perspective of the big picture. What are your goals? What do you need to obtain for you family? We will take these objectives and your budget into account as we explain each debt relief option option you can participate in. Most LA consumers feel that becoming debt free in 36-48 months (this is an average, not guaranteed) is worth the negative credit impacts that may not be as severe as either bankruptcy or simply having no ability to repay loans on their own. The best plan is to speak with a qualified counselor, and in fact, you can access our legal team as discussed below.
Look to a Los Angeles Debt Settlement Attorney Who Knows
While some LA companies may offer programs, our team is staffed by licensed attorney’s who have a firm grasp on how to facilitate debt relief. This is an important distinction. You can physically come to our offices and sit down with our experienced counselors. Having a debt settlement lawyer in Los Angeles who is overseeing your case can make all the difference in the world. You can easily find yourself on unequal footing when dealing with legal letters and correspondence from creditors who understand they are confronting a consumer with no legal training. When you engage a lawyer who is intimately acquainted with the legal process of consumer lending and collections, the tables are turned, and you are no longer seen as having a disadvantaged position. Your debt settlement attorney in Los Angeles may already have existing relationships with creditors which empowers negotiations and facilitates better communication during the process. Don’t fall for advertisements which place the emphasis on savings or speed when it comes to resolving you debt. Instead, seek out experience, track record, and legal knowledge because these matter far more when it comes to helping you pursue financial freedom in a way that finds closure and resolution.
Are you ready to get on the path to becoming debt free? Have your bills become more than you can manage? Talk to a team member today who will offer empathetic advice and sincere encouragement in finding a debt relief option in Los Angeles that fits your special situation. Call today.
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