Richard J. Shurtz, Attorney at Law

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Research and compare if looking for debt consolidation solutions

The Federal Reserve reported that the debt load supported by United States consumers is more than $3.20 trillion. In light of these figures, it is no surprise that many consumers may seek a debt consolidation loan in an attempt to reduce their monthly obligations. Washington residents who are considering this option might also consider the advantages of a Chapter 13 filing.

When an individual is searching for a way out of an endless cycle of debt and ever-rising interest rates, one of the first options many consider is a consolidation loan. While these may afford some relief in the short-term, consumers sometimes find that the interest rate or the length of the loan cancels out any real benefit. Additionally, there are many companies that look to make a profit on one's misfortune, leading to fees and other expenses that generate income for the lender.

Some consumers may find that continuing to make their monthly payments is the best option for them, thereby avoiding the extra cost of a long-term loan. Others may consider applying for a secured loan, possibly using their home as collateral. However, if a borrower experiences difficulties with making regular payments, they run the risk of losing their house.

While there are many companies that offer different debt consolidation options, one that may provide the relief families are looking for is a Chapter 13 bankruptcy. This particular filing can offer the possibility of saving a house and allowing for a workable repayment schedule. As long as the consumer meets all of the agreements, any remaining debt is frequently discharged -- providing it is subject to discharge. Washington families who are searching for lasting relief and a clean financial slate within a few years may obtain further information from local, experienced resources.

Source: Fox Business, "Debt Consolidation Loans Aren't For Everyone", Donna Fuscaldo, Oct. 10, 2014

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