Can Debt Consolidation Help with Wage Garnishment?
Thousands of Americans are under wage garnishment orders, making it difficult for them to pay their bills every month. These orders are put into place by the courts, and the majority of them are meant to collect debts owed to the government. In fact, most wage garnishment orders are for debts such as child support, alimony, tax debt, and student loans. Less than one fifth of wage garnishment orders have been put into place by private companies, and most of these are for debts such as credit cards, car loans, and mortgages.
If you’re currently struggling to deal with a wage garnishment, then you know how hard it is to make ends meet at the end of the month. In most cases, wages are taken at the worst possible time; a person just got done going through a divorce or major medical issue, and simply could not find the money to pay their bills. That means that having a portion of their paycheck deducted for an old debt or tax bill is about the worst thing that could happen in their financial lives.
If you’re going through this, then your first priority has to be to get your bills paid each month. Otherwise, you can risk falling behind on other debts, and continuing to have deductions taken from your pay. This usually results in additional wage seizures.
Instead of trying to avoid your creditors or just hoping that the problems go away, you need to take steps to either reduce the amount you’re paying every month on your bills or make more money. Of course, we’re guessing that you’re already trying to take on as many extra shifts or as much side work as you can. That means you need to reduce your bills.
Debt consolidation can be a great way to pay less on your debt every month while still making progress on your debt. By working with a debt counselor it will be possible for you to find a loan that will fit into your new budget. In many cases, clients have their minimum debt payment reduced by half. Best of all, as soon as you have paid off your wage garnishment, you can pay off your debt consolidation loan with the “added” income, saving you even more money.