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Loan consolidation as an option for managing debts

Individuals who have felt the heavy burden of insurmountable debts may have scrambled to find fast solutions to getting out from under the weight of unpaid bills. Despite their efforts, most will likely come to the conclusion that there are no fast fixes when it comes to getting out of a financial hole. While it is imperative that our readers get the right information about their specific options and needs, some Tennessee residents may find debt relief through the practice of loan consolidation.

There are different ways of consolidating loans and debts, such as those that individuals have on their homes, cars and credit cards. They may transfer all of their debts into a single loan so that they are making one payment per month instead of many and they may be able to negotiate a reasonable payment on their consolidated loan so that they do not risk a future default.

Additionally, they may choose to transfer outstanding debts to a credit card. However, this practice can be risky. Credit cards can have changing interest rates, so it is important that individuals do their research to ensure that their rates will stay low while they are paying down their balances.

Finally, individuals can use home equity lines of credit to pay off different debts. This option also carries risks. If a person defaults on a loan that has as its security a residence, that home may be foreclosed upon if the debtor defaults. This is why each individual or family will need to decide what option is best in their own unique circumstances.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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