{"id":36677,"date":"2021-12-06T09:00:19","date_gmt":"2021-12-06T17:00:19","guid":{"rendered":"https:\/\/pdxlegal.com\/?page_id=36677"},"modified":"2022-01-25T06:12:52","modified_gmt":"2022-01-25T14:12:52","slug":"debt-consolidation","status":"publish","type":"page","link":"https:\/\/pdxlegal.com\/oregon-debt-alternatives\/debt-consolidation\/","title":{"rendered":"Debt Consolidation"},"content":{"rendered":"
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Debt Consolidation Attorney in Portland, Oregon <\/strong><\/div>\n<\/h2>\n
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Debt consolidation is the process of combining multiple debts with high-interest rates into a single payment under the new consolidation loan or balance transfer credit card. You may choose to consolidate debt<\/b> if you have several loans or lines of credit to repay.<\/p>\n

With debt consolidation, you take out a single loan to pay off multiple debts. It aims to reduce the total number of creditors that you owe. Consolidating your debts allows you to lower your interest rate<\/a> and get a reduced monthly payment amount. If you\u2019re dealing with a manageable amount of debt and just want to reorganize multiple bills with different interest rates, payments, and due dates, then debt consolidation can help you.<\/p>\n

If you’re considering debt consolidation, call us today at Michael D. O\u2019Brien & Associates, P.C. by dialing (503) 694-4445 and schedule a case evaluation. Our reliable Portland bankruptcy lawyers<\/a> can help you understand the advantages and disadvantages of this debt-relief program.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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What are the Types of Debt Consolidation?<\/strong><\/div>\n<\/h2>\n
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Debt consolidation is the process of using different forms of financing to pay off one\u2019s debts and liabilities. A credible debt consolidation attorney in Portland can help you understand and develop the best possible debt consolidation strategy to improve your financial situation. To consolidate your debt, you get a single loan to pay off your other loans, leaving you to make just one payment to a single creditor.<\/p>\n

There are two broad types of debt consolidation loans: secured and unsecured loans.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Secured Loans<\/strong><\/em><\/div>\n<\/h3>\n
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A secured debt or secured loan requires you to offer something you own of value as collateral, in case you cannot pay your debt. Secured loans <\/b>are backed by one of the borrower\u2019s assets as collateral, such as a house or a car. It comes in multiple forms such as home mortgage loans<\/a>, car loans, and secured credit cards. You have several options for debt consolidation using a secured loan. You can refinance your house, get a home equity line of credit, take out an auto loan, or apply for a second mortgage.<\/p>\n

Generally, secured loans have lower interest rates compared to unsecured loans. Therefore, you may save money on interest payments by consolidating through a secured loan. Getting a lower interest rate will make your monthly payment more affordable. Secured loans are usually easier to obtain than unsecured loans because they carry less risk for the creditor.<\/p>\n

In case you can\u2019t pay back the loan and miss the monthly payments, your credit score<\/a> will be affected and the loan company can repossess and sell your property such as car, house, life insurance, or retirement fund.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Unsecured Loans<\/strong><\/em><\/div>\n<\/h3>\n
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An unsecured loan is also known as a personal loan<\/b>. It is a type of loan that is not backed by assets and can be more difficult to obtain. It means you take out new credit to pay off debts without any assets, or collateral, being linked to the loan. They also tend to have higher interest rates and lower qualifying amounts.<\/p>\n

The interest rates may vary based on your credit history. If you have a poor credit history, it\u2019s likely the interest rates will be higher. Although the interest rate and monthly payment may be lower on a debt consolidation loan, it’s important to focus on the payment schedule. Longer payment schedules mean paying a higher interest rate.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Is Debt Consolidation Right for You?<\/strong><\/div>\n<\/h2>\n
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Debt consolidation <\/b>helps people who have multiple debts with high-interest rates or monthly payments. When you consolidate debt, you no longer have to worry about multiple due dates each month because you only have one payment. However, this debt-relief option may not work for everyone.<\/p>\n

There are certain factors that you need to consider before consolidating your debt. A knowledgeable bankruptcy attorney<\/a> in Oregon can help you determine whether debt consolidation is right for you.<\/p>\n