Debt is a huge concern until you can get rid of it. You have to hand over your hard-earned money to the creditor. If you fail to pay monthly installments, you’ll be at risk of going to jail. So, taking a loan is not always a good idea.
Still, we take loans and fall into the trap of debt. The higher the number of debts, the riskier your position. If you have multiple debts running and want to get rid of them more easily, debt consolidation can be a good way.
But this is a complex process that requires too many considerations. In this case, a debt consolidation lawyer can help you.
Who is a Debt Consolidation Lawyer?
A legal professional who can help you consolidate multiple debts into a single one so you can reduce the risk is called a debt consolidation lawyer or attorney. They know the financial rights of a citizen according to the finance law. So, they can help you escape the trap of multiple debts and manage a better financial profile.
They follow a legal process to consolidate your debts into one by negotiating with the creditor or following any other legal way.

What can a Debt Consolidation Attorney Do for You?
Assessing Your Financial Situation
By law, debt consolidation is applicable in a specific financial situation. So, assessing your situation is a must for the process. Legal professionals who work with debt consolidation know how to assess it.
They evaluate your financial situation to understand whether you’re eligible for consolidation or not. Also, the financial condition assessment lets them know how much you can pay monthly. This is crucial for planning.
Developing a Consolidation Plan
After knowing your financial situation, they start developing a plan matching it. Creating a plan is crucial because they have to protect your interest and manage the creditors.
The plan might be lowering the interest rate, consolidating it in a single payment, waiving fees, or anything else.
Negotiating with the Creditors
Then, your lawyer negotiates with the creditor(s) about the consolidation plan developed previously. As the plan is designed to protect your best interest, the creditor(s) won’t agree with it so easily.
But if you have a compatible lawyer, you’ll get some benefit from the negotiation. In many cases, the plan is slightly changed in favor of the creditor. An experienced lawyer does this carefully so you don’t face any major issues.
Implementing the Plan
After negotiation, if the creditor(s) agree to comply with the plan, the implementation step comes up. As it involves several legal terms and conditions, your lawyer can handle it better than you.
In this step, they work with all the legal documents regarding the consolidation process.
Handling the Paperwork
Such situations require a lot of paperwork full of terms, conditions, regulations, etc. Your lawyer can handle the paperwork carefully so that you don’t face a worse situation later. They go through the contracts, generate the papers required, and draft proposals for negotiation. Also, they perform other tasks regarding filing.

Why do People Need Debt Consolidation Lawyers?
You already know what they can do for you. But if you need more information to decide, let’s know the reasons you need to hire a legal professional for debt consolidation.
Legal Expertise
You may not have the exact legal expertise you need to work with the debt consolidation process. On the other hand, they know everything regarding this as they have been working in this field for a long time.
Negotiation Skills
Another reason you need debt consolidation attorneys is their negotiation skills. To ensure the satisfaction of your creditor while consolidating the debts, negotiation skill is mandatory. A legal professional working with it has that skill.
Financial Literacy
Financial literacy is not just the calculation of income and expenses. It is way deeper than these. Lawyers working in this field have the financial literacy required to calculate things regarding consolidating your debts. So, you need them.
Customized Plan
Your debt consolidation plan must be designed based on your situation. An expert legal professional can handle this situation by crafting a unique plan based on your situation.
Debt Management
They can help you with a debt management plan beneficial for you. A good plan is mandatory to handle your debts and stay away from stress, especially when you’re struggling with debts.
Credit Counseling
You’ll receive free credit counseling from a debt consolidation attorney to help you improve and maintain your credit score. A good credit score is required if you want to secure your financial future.
Long-term Support
They are not done after negotiating the consolidation. They can support you for a long time with managing your income and expenses to help you repay the debts without any issues. You can talk to them about your financial situation even after the consolidation process.
Debt Settlement
If the situation permits, a debt consolidation lawyer can sometimes settle the debt too. They can discuss with the creditor to lower the debt amount to make it easier for you. But it is not possible every time.

How to Find a Compatible Debt Consolidation Attorney?
Now you know that legal support from an experienced debt consolidation attorney can help you in many ways. But you need to hire someone compatible.
It is easy to pick someone randomly and talk to them about your debts, but this usually won’t bring the best result. You need to choose someone compatible. For this, the process below can help you.
It may take some time and effort, but it is worthy.
Step 1- Collecting Names
In this step, you’ll collect 14-15 names of lawyers or law firms who work with debt consolidation. Ask people around you for suggestions. They can help you with some names.
Searching using online search engines will help you with a lot of names. Just search with the keyword ‘best debt consolidation lawyer near me’, and you’ll see many results. Pick a few from the recommendations.
These options should be enough to help you with 14-15 names. If you need a few names trying these two options, visit the local bar community to know the lawyers working with such issues.
After you have enough names, continue to the second step.
Step 2- Assessing the Options
In this step, you need to assess them based on the information available online. Most lawyers or firms have an online presence nowadays. So, it won’t be difficult to find information about them.
Visit their website or social media profile to know their expertise, cases they’ve worked on, success rate, and more information. Also, check the reviews by the clients.
Some service review websites are there where you’ll find reviews about their legal service. Check the ratings and reviews there to have a clearer idea about them.
Based on this online evaluation, rank them. Then pick the top 4-5 options in the rank to proceed further.
Step 3- Meeting Directly
You should go for a direct meeting in the third step. As you have 4-5 choices, communicate with them to schedule a meeting. Most lawyers or law firms offer a free or low-fee consultancy if it is the first meeting. Utilize this opportunity.
Discuss your situation and ask questions when you meet them. The questions can be about their view on your situation, probable plan, their expertise, similar cases they’ve worked on previously, etc.
The fee is another thing you should discuss clearly.
Step 4- Picking One
After meeting everyone, you’ll understand whom to choose.
The fee is an important consideration when selecting someone. But you should focus on other things too. The more expert the lawyer is, the better result you can expect. So, don’t compromise the experience for money. Find a good balance of both.
Questions to Ask a Debt Consolidation Lawyer
When you meet them for the first time, you must know some information before deciding whom to pick. Asking some questions will help you with that.
After describing your situation, you should ask the questions given below.
Is there any better way?
Sometimes, consolidating the debt is not the best way you can follow. There might be any other way a lawyer can suggest. So, ask them this question to see if there is any better way you can utilize it.
What is your plan?
This question reveals their approach toward your case and helps you decide about the lawyer. A lawyer can come up with a better plan than others. So, ask this question when you first meet them.
How long does it take to negotiate with the creditor?
It completely depends on the creditor and negotiation skills of your lawyer. Still, you can ask this question for a rough idea about the time needed. Lawyers have an idea about their negotiation skills. So, the answer will be something close to the exact time needed.
How much is your fee?
Talking to the lawyer about fees is one of the most important things in this discussion. Doing this would help you in decision-making. Also, an embarrassing situation may occur later if you don’t talk about the fee clearly.
What if my debtors want to sue me? Can you help in this situation?
Such a situation is very common that creditors sue people with debts. There is a chance that your creditor(s) would do the same. So, you must discuss this with the lawyer. Ask them if they can help you in such a situation. Try to pick a lawyer ready to help you in every possible situation. This is mandatory.
Cost of Hiring a Legal Professional for Debt Consolidation
Legal professionals for debt consolidation can charge you based on several points.
The most common practice is charging a flat fee per creditor. In this method, they’ll negotiate with your creditors and ask for payment based on the number of creditors negotiated with.
The amount varies based on the complexity and amount of debt. For a simple situation, $500 is a good amount for most of them. However, depending on the complexity, it may go up to $5,000 or even more.
Also, the hourly rate system is followed in many situations. In this system, they keep count of hours spent on your case. Based on that, you should pay the fee.
The typical hourly rate for such cases is around $200-$500 in most cases. However, some lawyers ask for more or less than the typical rate based on the situation and other issues.
Fee based on the amount saved is another popular option to pay debt consolidation lawyers. In this system, they may ask for around 30% to 50% of the amount saved through negotiation.
The higher amount they can save, the more fee they’ll get. So, if you hire someone following this method, they try to save as much as possible.
Sometimes, the fee is calculated based on the amount of debt. The typical range for such a fee structure is around 10% to 30% of the total debt amount. It is also practiced a lot.
But in this method, sometimes the amount you need to pay the lawyer is higher than the amount you save. So, stay careful while entering such an agreement. Calculate what you’ll receive and how much you’ll have to pay.
Debt Settlement vs. Debt Consolidation
Debt consolidation and debt settlement are two different terms to manage debt that seem similar. They have differences in how they work, the result, and the impact on your credit score.
Debt settlement is settling the debt by offering a lump sum to the creditors. This process is typically handled by companies that want to make a profit from it in the long term.
They calculate all the debts of the client and the monthly payment for that. Then, they offer the creditor a lump-sum amount to aid the client in getting rid of the debt. In exchange, they receive the monthly payment from the client. Thus, they make some profit.
On the other hand, debt consolidation is the process of accumulating all the debt into one place. In this system, the person uses a loan or credit card of low interest to pay off all their debts. Thus, multiple debts are turned into a single debt, making calculation and monthly installments easier.
This is the basic difference. Both come with pros and cons. So, choosing one depends on your situation. But debt settlement damages your credit score permanently, whereas consolidation damages it temporarily, that too in some situations only. So, comparatively, consolidation is a better option.
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Frequently Asked Questions (FAQ)
Is debt consolidation a good idea?
Debt consolidation saves you from several high-paying loans. But for this, you need to have a good credit score to qualify for a low-interest rate. Not having a good credit score means a high interest rate. Getting another debt with a high interest rate to eliminate multiple debts of similar interest rates doesn’t make much sense.
So, it is a good idea only if you have a good credit score and the situation is on your side.
What are the advantages of debt consolidation?
The most common advantage of this process is a single debt instead of multiple loans and payment plans. This reduces the complexity and helps you handle the loan easily.
Also, it allows you to enjoy a lower percentage as well as reduced monthly payments. Thus, you can repay your loan properly, which results in an improved credit score.
Does debt consolidation affect negatively?
Yes, it does. Sometimes you may have to suffer for it. If your lawyer can’t reduce the interest rate much, the lawyer’s fee will be an added burden. Also, sometimes you may have to pay a higher interest rate than your existing debts.
Again, it doesn’t help you much with the underlying financial issues. It doesn’t help you understand how to handle money. Thus, issues like multiple loans may arise again.