Are Debt Consolidation Loans An Alternative To Bankruptcy?

Are Debt Consolidation Loans An Alternative To Bankruptcy?

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When you think about debt consolidation, what do you think of first? Which aspects of debt consolidation are important, which are essential, and which ones can you take or leave? You be the judge.

Debt collection companies are not allowed to contact debtors after 9 o’clock at night or before 8 o’clock in the morning. Debt collection companies must adhere to these time constraints unless they receive permission from the debtor to contact them outside of these times. Debt collection agencies are a business so offering a full-and-final settlement of 30-40% will regularly be accepted. Always get any full-and-final settlement offer accepted in writing prior to making a payment. Debt collection is big business: About $40 billion each year is recovered from consumers by collectors, according to the International Association of Credit and Collection Professionals. With so much money at stake, aggressive tactics and outright harassment – are common.

Debt collection practices, whether by creditors, collection agencies, or attorneys, are a frequent and often emotionally charged source of consumer complaints. Many people finding themselves subject to debt collection may already be experiencing a broad range of financial and personal difficulties. Debt collection problems continue to be a top consumer complaint received by federal and state consumer protection agencies. The federal Fair Debt Collection Practices Act (FDCPA), which was passed in 1977, is intended to prevent abusive, deceptive, and unfair debt collection practices in the marketplace.

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The consolidation process involves replacing of current expensive debts by getting a single financial help at lower interest rates and lower EMIs. One can get a lower monthly payment by reducing the interest rates charged on the financed money, or by combining it with an extended repayment program.

How can you put a limit on learning more? The next section may contain that one little bit of wisdom that changes everything.

Laws in other states may vary. Overall, our fact sheets are applicable to consumers nationwide. Lawyers don’t take cases on retainer unless they can make money. If you find a qualified lawyer to handle your case, a lawsuit will take months, even years to settle.

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Getting a debt consolidation loan is not a difficult task, but you need to be honest about the situation with the creditor. Hiding things will not at all result in getting you back on track. Most of the people think that filing for bankruptcy is the easiest way to get out, but it’s not true. The situation will damage your credit score and make the credit report even worse. So, debt consolidation is a better way to tackle the financial crunch.

Bill Collectors really want their money, like the rest of us. The firm gets default judgments in 90 percent of its cases, which are judgments in its favor when a defendant doesn’t respond, he said. Contact them to get the solution for your debt recovery. Contact a consumer lawyer if you are in this situation for advice about your case

Now might be a good time to write down the main points covered above. The act of putting it down on paper will help you remember what’s important about debt consolidation.

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