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South Carolina consumers and credit card debt consolidation

South Carolina residents may not realize that the average American had approximately three credit cards in 2014, while 15 percent had five or more. Nationwide, Americans owed $889 billion in revolving credit, including credit cards. Coupled with student loans and other forms of debt, credit card payments can be difficult to manage. However, there are steps consumers can take to consolidate debt, reduce payments and manage their debt.

Only 29 percent of student loan borrowers in 2012 were always current in their payments and paying down their debt. As others went deeper into debt, 1.2 million defaulted on their student loans between 2011 and 2012. Experts suggest that the best strategy for quickly paying down debt is debt elimination rather than consolidation. Balance transfers may be beneficial if paying debt off is not a feasible option. Balance transfers generally come with a low introductory rate period or a low fixed rate that is lower than the current one.

Consumers who choose to consolidate their debt should be prepared to pay off the balance before the low-interest introductory period ends. Otherwise, they may accrue large amounts of interest and become even more in debt. Home equity loans are another option for those who are willing to borrow against their home equity for a low-interest rate, but this can be a risky strategy. If the loan defaults, consumers risk forfeiting their home to the lending company. For student loan consolidation, the U.S. Department of Education offers direct consolidation loans without a fee.

There are various options available to consumers who are looking for ways to pay off or consolidate credit card debt. When these options are not feasible, bankruptcy may provide the financial relief necessary to eliminate debt and move forward. A bankruptcy lawyer may provide guidance in filing for bankruptcy and preventing creditor harassment.

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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