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Can taking on new debt assist with debt relief?

Faced with mounting levels of debt, many Washington residents are in search of effective and lasting relief. Debt relief comes in many forms, ranging from restructuring of debt all the way to filing for personal bankruptcy. For many consumers, taking on a personal loan can be an effective way to achieve debt relief.

It may seem counterintuitive to assume new debt while struggling to find relief from existing financial obligations. However, a personal loan with a low interest rate and favorable terms can help consumers regain financial stability. Using borrowed funds to pay down debt that has higher interest rates and excessive fees can be an effective debt management strategy.

Anytime that an individual takes on new debt, it is important to fully understand all of the terms associated with that new obligation. Be sure to check the interest rate, fees and fines as well as the terms of repayment. It's also a good idea to do some research on the lending institution itself prior to signing on the dotted line. Don't be shy about shopping around to find a loan that offers a better fit.

Taking out a personal loan is not a good debt relief strategy for every Washington resident. For some, however, the right personal loan can be a good fit for their long-term financial needs. As is the case with any big financial move, consumers should do the legwork prior to making a final decision, and should understand how this new obligation will fit into their monthly budget.

Source: Forbes, "Is Debt The Devil? Financial Advisors Say 'Not Always'", Jeff Rose, Oct. 23, 2017

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