Did you know that the average credit card holder in America has around eight different credit cards? On top of that shocking number are the reports that the average credit card debt for a US household is upwards of $15,000. One of the most common causes of Ohio bankruptcy can be the neglect of credit card debt and payments. But once you’re in so deep, how do you get out?
Credit Card Debt Consolidation
Credit card debt consolidation basically means combining all of your credit card debt into a single loan. It essentially organizes your debt and allows you to focus on one payment, instead of focusing on eight different ones. Your bankruptcy attorney often suggests this option to people before considering bankruptcy.
Can it Help Me?
If credit card debt consolidation sounds like it could provide you some relief and organization. There are some questions they will likely ask you in order to see if it can truly help you.
1) Will your interest rate go down? Lowering your interest rate is one of the main reasons behind consolidating your credit card debt. If you don’t think you will be offered a lower rate as a part of the consolidated loan, you may want to reconsider the hassle.
2) Can I actually pay the debt off? Your Ohio bankruptcy attorney will ask you if you are actually financially capable of paying off the credit card debt once it is consolidated. A consolidation does not lower the amount you owe; it simply combines it into one loan.
3) Will the consolidation lengthen my repayment period? If the consolidation considerably increases the length of your repayment period, you may not want to pursue it as an option.