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South Carolina consumers and debt consolidation mistakes

Debt consolidation is a popular option for many South Carolina consumers who are overwhelmed by credit card debts and other unsecured obligations. It bundles the debts into a single amount that can often bear lower interest rates and require a manageable monthly payment. However, consumers who are not careful about the process may actually increase their obligations.

One major pitfall consumers make is to consolidate debt without addressing the root of the problem, such as spending. Credit counselors can help consumers move forward from negative financial habits. Other consumers commit to a consolidation loan without researching potentially superior options. A debt management plan, which coordinates negotiations with creditors through a non-profit credit counseling organization, may be a better option for many individuals. Consolidating the wrong debt or working with the wrong debt relief professionals are also common mistakes.

Using credit cards immediately after debt consolidation may also lead to financial difficulties, especially if consumers immediately use up their newly-available credit. This can often happen without a plan to move forward. Once professional help has been sought and the best debt consolidation method has been chosen, a plan for the financial future is still necessary. Experts urge consumers to have an alternate plan for emergency expenses to prevent them from returning to credit spending. Budgeting is a simple habit that can have a significant impact when it comes to financial planning.

When debt consolidation is not enough to correct the course of serious financial mistakes, personal bankruptcy may provide consumers with the debt relief they need. An attorney can explain the eligibility requirements while pointing out that filing for bankruptcy can often provide a temporary reprieve from creditor harassment.

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The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
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Columbia, SC 29201

Phone: 803-764-1558
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