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Debt consolidation offers option for people in debt

For people in South Carolina facing high credit card bills, debt consolidation can offer an option for bringing together their debts so that they do not have to pay multiple high interest rates. Before going through with debt consolidation, they might consider the terms of the agreement. Debt consolidation may allow them to obtain lower payments, but it may be over a longer period with higher overall interest rates. They also have to go through an extensive application process to qualify debt consolidation.

Individuals considering multiple options for lowering their debt should be aware that debt consolidation is not the same as debt negotiation or settlement. With debt negotiation and settlements, debtors may be able to get their total debt amount lowered, if their creditors agree to the terms. The downside to this type of agreement is that the federal government may tax the forgiven debt amount.

Bank loans, peer-to-peer lenders, home equity loans and debt management programs also offer debtors options for managing their credit card debt. Individuals with high credit card balances may want to consider seeing a credit counselor for advice. Sometimes paying off debt and closing credits can be a better course of action. For debtors with high credit cards payments they cannot manage over a long period, bankruptcy may be an option they need to explore.

To be eligible for Chapter 7 or 13 bankruptcy, debtors need to meet certain requirements and go through application processes. Their ability to qualify for bankruptcy depends on their financial situation and debt owed. An attorney with experience in bankruptcy law may be able to help them to better understand the pros and cons of each type of bankruptcy and make a decision on which option would be better in the long term.

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The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
Columbia Bankruptcy Office

Columbia Office

Charleston Office
925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
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Charleston Office