The Huggins Law Firm, PA
Call to Schedule a Free Consultation
Columbia 803-764-1558 Charleston 843-509-0039

Tips for getting out of debt

As the new year continues forward, many South Carolina residents may be wondering how they can get their debts under control. While some people may be struggling with auto loans or credit card bills, others may be trying to pay down a large student loan. Whatever the debt is, there are several solutions to getting rid of it.

Although a savings account is often used for emergency needs, some people could benefit if they used a portion of it to pay down their debts. However, funds from retirement savings accounts should not be used for this purpose, as this could incur penalties and taxes.

There is also the option called a temporary hardship status. This option is for those suffering with a serious, temporary hardship, such as a natural catastrophe. The creditor may be willing to work out a payment plan under these circumstances. Liquidation is a further solution for those wishing to pay down their debts. For example, trading a vehicle for a more affordable one could be beneficial to one's credit profile and selling unwanted items may bring in extra income to help pay down debts. For those who have several loans that carry high interest rates, a consolidation loan may help. By combining several debts, such a loan allows a person to focus on one debt while charging lower interest rates than credit card companies.

For many people who have overwhelming debts, filing for personal bankruptcy may be a viable option for them. An attorney who has experience with these matters can outline the requirements of Chapter 7 and Chapter 13, which are the two principal forms used by consumer debtors.

Source:WKOW, "Understanding options to get out of debt and the impacts on credit profiles", Andrew Housser, Feb. 8, 2016

No Comments

Leave a comment
Comment Information

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
Map & Directions

Charleston Office