Law Office of Ginger C. Cord, PSC
Free Initial Consultation
859-963-2073

Consolidating debt ahead of Chapter 7

Debt is a serious problem for many American families. Here in Kentucky, the average credit card debt load can be quite heavy, but thankfully there are ways to handle it. One major option is consolidation, which allows multiple debts like credit cards to be handled all at once. This is one of several options available for handling debt, a list that includes Chapter 7 bankruptcy. 

Debt consolidation, in short, is the act of taking multiple debts and rolling them into one convenient monthly payment. In some cases, this allows people to take a high-interest debt like a credit card and move it to a repayment option with a lower interest rate. It also means forgetting about multiple payment dates per month, allowing for a single payment that is easier to keep up with and easier to afford. 

The major benefit lies in interest, however, because the average credit card carries an annual rate of some 17 percent. On the contrary, most debt repayment options carry an interest rate of 5 percent or less. A personal loan, for example, is an unsecured loan that allows individuals to consolidate multiple debts into a single monthly payment. In some cases, personal loans will allow the creditor to borrow up to some $35,000 to be repaid over three to five years. 

Of course, an option like this will not fit every situation. Some Kentucky residents are facing serious debt load that even a personal loan or line of credit cannot effectively handle. In those cases, a Chapter 7 bankruptcy filing could be the most advantageous option available, as it can help to discharge some debts and pay down others, putting the individual or family back on a positive financial path. 

No Comments

Leave a comment
Comment Information
Email Us For A Response

How May I Assist You?

How May I Assist You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Law Office of Ginger C. Cord, PSC
155 E. Main Street
Suite 330
Lexington, KY 40507

Toll Free: 800-762-6916
Phone: 859-963-2073
Fax: 859-254-2192
Lexington Law Office Map