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Debt Consolidation

With interest rates at all time lows, it might make sense to consolidate some of your credit card debt or unsecured lines of credit into a new consolidated loan.  However, it is important to make sure that you understand the consequences of taking out certain types of debt consolidation loans.  For example, a home equity line of credit can be extremely dangerous.

When you take out a home equity line of credit to pay off your unsecured bills, it may sound like a good way to reduce the interest rates you are being charged on your credit card bills.  However, if you take out a home equity line of credit, then you have just put yourself into a position where if you become unable to pay off that HELOC for any reason...loss of job, reduction in income, death, or divorce then you will find yourself without a home after the foreclosure.

While a debt consolidation plan might work, a Chapter 7 bankruptcy would eliminate your unsecured debt and a Chapter 13 bankruptcy would eliminate all interest on the unsecured debt, if not discharge all or most of the unsecured debt.

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Plano office
Sherman office
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1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
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Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
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6060 North Central Expressway, Suite 602
Dallas, Texas 75206

Phone: 214-733-1775
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