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Consolidating credit debt ahead of Chapter 7

With Americans cresting over $1 trillion in credit card debt as of this year, it is unsurprising that debt is one of the most stressful elements of day-to-day life for many households. Here in Kentucky and elsewhere, families struggle to overcome high levels of unsecured debt. Several options exist for them to be able to escape the specter of debt, including consolidation and even Chapter 7 bankruptcy. 

Many financial advisers agree that debt consolidation is one of the most effective ways of handling out-of-control debt. Consolidation can mean several things, one of which is the act of taking out a personal loan and consolidating all credit card balances onto the single loan. This has the dual benefit of taking advantage of a lower overall interest rate, and paying down all bills in the same location. 

Personal loans, unlike credit cards, offer flexible terms of repayment. For example, those who can commit to paying down the loan in two to seven years may receive a more favorable interest rate than a credit card rate. In some circumstances, interest rates can drop as low as 5.7%, depending on the individual applying for the loan. 

Of course, not everyone can take advantage of consolidation. Kentucky residents for whom debt has become a serious issue may wish to consider Chapter 7 bankruptcy. Chapter 7, often referred to as a liquidation bankruptcy, typically allows unsecured loans to be formally discharged by the court. This can help filers get in control of their debt and move toward a brighter financial future. 

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

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