For some Americans, credit card debt has become a major day-to-day problem. Thankfully, Kentucky residents can rely on a variety of different options for helping to pay down this debt. For some people, a personal loan is a good place to start. For others, debt consolidation or a Chapter 7 bankruptcy filing may be a more appropriate option.
Personal loans are widely regarded as a positive tool in the journey toward debt reduction. For one thing, personal loans typically have lower interest rates than credit cards. A personal loan can start as low as 5% interest and usually does not require collateral. Finally, a personal loan is amortizing, which means every amount paid is put toward the principal and interest.
In order to most effectively seek out a personal loan, it can be helpful to get multiple quotes from different loan companies and compare lenders based on annual percentage rate (APR), which helps to measure how much the loan will actually cost including interest. Sticking to the appropriate credit band is also important: borrowers with bad credit will likely not have much luck with loan companies that offer to prime borrowers. For those with very good credit, a balance transfer might be a more appropriate option.
For those Kentucky residents for whom personal loans are simply out of reach, a Chapter 7 bankruptcy filing might be another useful option. Chapter 7 filings allow assets to be liquidated to pay down existing debt. In some cases, the court may even choose to forgive certain unsecured debt, depending on the specifics of the borrower's financial situation.