Debt Consolidation as a “Stopgap Measure”

At Hedtke Law Group, we see a wide range of clients, and we counsel people about bankruptcy and other alternatives on a daily basis. This requires really looking into each person’s personal situations – and understanding how every choice is going to affect their finances and their lifestyle. 


Everyone’s debt is different. It was accrued in different ways, and it gets solved in different ways, too. There’s no sense in bringing a cookie-cutter approach to debt counseling and management. There’s who you owe, where you live, what transpired in the past, and all sorts of other factors – and don’t forget documenting employment and income!


When Debt Consolidation Can Help


For people who have a wildly scattered portfolio of debt, debt consolidation can be a first step to getting your house in order.


The idea is that by combining debts into one monthly payment, the borrower can avoid some forms of interest and penalties. There’s also the benefit of the consolidated structure where there are fewer creditors to hound you about payments.


Achieving Debt Resolution


However, debt consolidation by itself is not usually the vehicle to achieve that resolution.


That’s a longer conversation, and a longer process. It involves being able to meet those monthly payments that you have committed to, and leveraging funds in all the right ways to become financially solvent. It may require significant brainstorming, counsel and deliberate conversation about how to address troublesome debt – for good!


So in some senses, debt consolidation can be a good beginning to a plan, but it shouldn’t be viewed as something that it’s not. It’s important to really look at the details of a financial situation to figure out what’s in the best interests of the parties that are involved. It’s a little bit like daytime court TV sometimes, where getting to the facts involves some amount of discovery, and diagnosing the issue means doing a deep dive into the background. But once you have all of your ducks in a row, it’s possible to start working toward a more orderly and positive financial life. We can help! Turn to Hedtke Law Group for attentive, caring and professional legal representation and advice. We can help make your voice heard in a court of law, and help you to achieve bankruptcy goals. We will lay out your options under the law, and work with you to find the right solution. There’s nothing generic about debt resolution. It’s something to think about. We’re ready to roll up our sleeves to help you.