Expert Bankruptcy & Debt Relief Insights

Facing a constant onslaught of debts does something to the way you think. Sometimes you agonize over small purchases, knowing that cash flow is so limited and that every purchase you make on credit will cost you much more than its face value. Therefore, if you get a blister on your foot, you avoid buying a tube of antibiotic ointment because you are unsure whether it will fit into your budget. At the same time, another part of your brain rebels; you make impulse purchases just to show that you are not going to let the bill collectors who are metaphorically clamoring at your door get you down. In the brief interval between making your monthly credit card payment, such that the balance goes below the credit limit, and the monthly accrual of interest charges, so that it goes right back to being maxed out, you go to a sit down restaurant and buy a meal and a beverage and leave a 20% tip; the server is probably in the same boat as you are, financially.

Your financial decisions are moment-to-moment because you cannot bear to think about the long term. At the same time, big wishes still visit your thoughts sometimes. If only money would materialize in your bank account, that would enable you to pay down your debts. This is what happens when you get a personal loan. Yes, you must pay it back with interest, but that is a small price to pay to get out of your current dilemma. To find out more about the pros and cons of unsecured personal loans for debt consolidation, contact an Oakland lawsuits, collections, and creditor harassment lawyer.

Personal Loans are Pretty Awesome if You Can Get One

Debt consolidation loans are the next best thing to a deus ex machina when it comes to getting out of debt. They are personal loans with a lower interest rate than your current debts. This means that when you use a debt consolidation loan to pay off your credit card debt or some other expensive debt, you pay the same principal amount but less interest, and you also buy time to pay it off. Debt consolidation loans are unsecured personal loans, which means that you do not have to risk an asset such as your home equity to get them.

Personal Loans and Your Credit Score

If it were easy to get debt consolidation loans, no one would resort to debt relief measures that tank one’s creditworthiness, such as filing for bankruptcy protection or settling one’s debts for less than their face value. The credit score requirements are a barrier to personal loans for many borrowers; the better your credit score, the lower the interest rate you can get on the loan. The hard credit pull that happens when you apply can lower your credit score slightly, but your credit score increases as you repay the loan.

Contact the Law Office of Melanie Tavare About Debt Consolidation Loans

A debt relief lawyer can help you if you are considering consolidating your debt with a personal loan. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.