[vc_row][vc_column][vc_column_text]Financial problems can surface in unexpected manners, such as the onset of an unexpected global pandemic.  Many businesses were suddenly forced to close, resulting in millions of people losing their jobs in recent months.  Unexpected medical bills, unemployment, missed mortgage or rent payments; the ultimate financial fallout from the novel coronavirus outbreak still remains to be seen.  What has already been seen is that many families are struggling under extensive and unmanageable levels of debt.  There are many legal options for these families to escape that debt. While filing for Chapter 7 bankruptcy is an option, many people want to avoid the negative consequences of such an action.  For people who want to escape their unmanageable debt with relatively few consequences, debt consolidation is a practical option to consider.  Debt consolidation is just what it sounds like: the consolidation, or combining, of all of your smaller debts into one larger debt.  Debt consolidation does not actually erase your debt, leaving some people to wonder why it's worth doing.  Instead, the process allows you to escape your debt by reducing the overall interest levels of your outstanding debt. For example, let's say you have 5 credit cards, each with a current balance of $5,000.  These credit cards all have an annual percentage rate (APR) of 20%.  If you make a $100 payment to each credit card every month, it will take over 9 years to eliminate the balances.  You will have paid $5,840.10 extra for each credit card.  And that's assuming you make no additional charges to any of these cards!  Now, let's say you consolidated this debt into one loan with an APR of 10%.  Instead of five $100 payments, you're now making one $500 payment monthly.  With these terms, it will now take only five years and five months to eliminate your debt, with only $7,474.45 in total interest.  This would save you $21,726 in interest payments alone. Every individual's situation is unique, but the goal of debt consolidation remains the same: reduce the time it takes to pay off your debt and pay less in interest costs.  The terms of debt consolidation loans can vary dramatically based on the level of debt and the applicant's credit history.  That's why it's important to have a dedicated debt consolidation law firm help you throughout the process.  A bankruptcy and debt attorney can tell you if debt consolidation is the best action you can take to escape your debt.  The Law Offices of Scott Warmuth provides free consultations to anyone interested in reducing their debt obligations through consolidation, negotiation, or bankruptcy.  Call us today at 888-517-9888![/vc_column_text][/vc_column][/vc_row]