What is a Debt Consolidation?

Debt Consolidation Companies

Debt Consolidation is basically the practice of taking out one loan to cover all of your outstanding debts. Instead of settling with each creditor separately, debt consolidation companies will generally pay off the debts you wish to consolidate, leaving you with one payment to make as opposed to many payments to make. The main risk with debt consolidation is finding a company that is reputable. Some debt consolidators will purchase outstanding debts from creditors at a discount.

The better ones will pass some of the savings along to the borrower. It is also risky to convert unsecured debts (like credit cards) into secured debts (like a mortgage). While it may seem attractive to many borrowers, these loans end up costing more money over time - if a typical mortgage lasts 30 years, the debts consolidated into that mortgage are paid off over that time period while interest accrues. Consolidation loans replace one debt with another; they are inherently unsustainable. Debt consolidation is the financial equivalent of kicking a can down the road.

If you are in a similar situation and could use some help, contact us today online or by telephone at (312) 313-1613 to speak with an experienced Chicago bankruptcy attorney.

Contact Us Today!

Talk to the leading law firm in the country about your rights for free! Fill out the form below or give us a call at (312) 313-1613 and we would be happy to give you the answers you need to make informed decisions for yourself and your family.

*First Name
Please enter your first name.
*Last Name
Please enter your last name.
*Phone
Please enter your phone number.

This isn't a valid phone number.
*Email
Please enter your email address.

This isn't a valid email address.
*I am...
Please make a selection.
*Are you a new client?
Please make a selection.
*How can we help you?
Please enter a message.
- By submitting your information or contacting Sulaiman Law Group, Ltd., and/or Atlas Consumer Law ("the firms"), you consent to receive automated communications, including autodialed calls, pre-recorded messages, texts, and emails from the firms, their agents, assignees, affiliates, or any affiliated parties. This consent applies to all contact details you provide, as well as to future communication technologies. Using the internet or other methods to communicate with the firms does not establish an attorney-client relationship; therefore, avoid sharing confidential information through these channels. Please note that all calls may be recorded for quality assurance and training purposes. To opt-out of communications, reply with "STOP" to any text message, click the "unsubscribe" link in any email, or send a written request to the firm's mailing address. Your continued interaction with the firms signifies your acceptance of these terms. You agree to indemnify the firms against any claims arising from the use of these communication methods. The firms are not liable for any communication failures. Disputes arising under this agreement are governed by Illinois law, with jurisdiction exclusively in the courts of DuPage County, Illinois, or the nearest federal district court. These terms are subject to change, and your continued communication with the firms implies your agreement to any such changes. If any part of this agreement is found invalid, the remaining sections will remain effective. This agreement is in compliance with the Telephone Consumer Protection Act (TCPA) and applicable state laws.
  Please read and agree to disclaimer.