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When to refinance debt in South Carolina

Although a credit card can be helpful for a South Carolina business, there is still the danger of piling up too much debt. At some point, it may become necessary to take action such as paying off the entire balance or refinancing the debt. While paying off the debt may sound like the best option, it means depleting the company's cash reserves.

Refinancing a company's debt may be a good idea if it means paying off that debt at a lower interest rate. This enables the business to pay off the balance faster, which saves money in the long without parting with too much cash at any one time. Another benefit to refinancing is the ability to consolidate payments for businesses that have more than one credit card. In some cases, it may be possible to transfer credit card debt to one card with zero percent interest for up to 18 months.

Prior to deciding whether or not to refinance, a company should look for a card that suits its needs and comes with a lower interest rate. This may be done online or by talking to the credit card company and explaining the current situation and the desired resolution to it. If the numbers make sense, a business can start refinancing its debt immediately to obtain debt relief.

Self-employed individuals who are dealing with credit card debt may wish to explore bankruptcy. An attorney may be able to explain the benefits of such a decision like the ability to have debt discharged quickly or repay the debt at a more affordable monthly payment. Bankruptcy may also grant a debtor an automatic stay from creditor contact.

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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
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925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
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