When an individual is laden with excessive debt it is often possible for debt consolidation in Chicago. When an individual finds himself in this situation, often combining all the unsecured debt into a single payment makes more sense and becomes more manageable. Instead of payment multiple creditors including stores, banks, credit card companies, etc, it is possible to make a single payment to a company that arranges debt consolidation and they in turn make the negotiated payments on your behalf.
Debt consolidation in Chicago can be quite advantageous to the consumer as the debt consolidator will be responsible for negotiating a payment scheme which will result in a lower interest rate, a lower balance outstanding, lower monthly payments and the elimination of any previous late charges that were applied. An important part of the negotiation is to set a date when the debts will be paid in full. Over the long run, it is easy to see how debt consolidation can save the consumer a great deal of money. This type of arrangement is so much better than attempting to pay credit card debt that continues to increase even through you are paying the minimum amounts. Secured loans which are loans taken out for the purchase of a car or house are not included in these arrangements, the debt that can fall into the consolidated plan is unsecured such as credit cards which are affiliated with the major card companies as well as various store credit cards.
Creditors take a positive view of a debt consolidation program as they see that the debtor is showing good faith and a will to pay the debt. The alternative for those who hold unsecured debt is seeing the creditor declare bankruptcy which results in them getting little or none of their money back. When creditors agree to accept the consolidation program they can be assured of getting all the money back that was put out originally, they may not see the amount of interest that they would like but the alternative is to take ten cents on the dollar if the individual declares bankruptcy.
Many people see this as a way out of their problems without destroying their credit score or suffering the stigma attached to a bankrupt.
If you find yourself burdened with debt and you wish to avoid bankruptcy then debt consolidation in Chicago will be a good way for you to go. Contact Chicago Debt Solutions; the law offices of Trepeck Law Group, LLC.