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Is loan consolidation the right debt relief choice?

Facing down a huge pile of debt is never an easy situation. For some Washington residents, the need for debt relief is urgent. Unfortunately, being faced with an urgent need often leaves individuals vulnerable to scams. An entire industry has been constructed around the need to achieve lasting debt relief. That said, not all of those companies operate using ethical principles.

Loan consolidation is one of the more popular debt relief options. The premise is simple: consumers take out a new loan under favorable terms and use the proceeds to pay off debts with less favorable terms. When properly implemented, loan consolidation can be a powerful debt relief tool.

In reality, however, many loan consolidation offers are geared primarily toward the best interests of the company and not the consumer. Loans may be riddled with hidden fees and additional expenses, making the bottom line far less enticing than the original consolidation offer. It should also be noted that consumers have the ability to contact their lenders directly and ask for a modification of terms, which can make consolidation unnecessary. Consumers must take the time and make the effort to research these offers thoroughly before signing on the dotted line.

In an effort to seek substantial and lasting debt relief, many Washington residents will consider loan consolidation offers. In making this important decision, it is well worth the investment of scheduling a consultation with a bankruptcy attorney. That meeting can provide clarity on the best possible debt relief options, up to and including personal bankruptcy.

Source: tylerpaper.com, "Be wary of methods offered to help you get out of debt", Mechele Agbayani Mills, March 24, 2017

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