Pelley Law Office LLP
Dallas Office
Plano Office
Sherman Office

No Charge For Initial Consultation ($250 value)

Menu Contact

Over 80 Years Of Combined Experience

View Our Practice Areas

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.

No Comments

Leave a comment
Comment Information

Awards & Recognition

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Locations

Plano office
Sherman office
Dallas office

Plano Office
1312 14th Street, Suite 100
Plano, Texas 75074

Phone: 972-608-0335
Map & Directions

Sherman Office
905 North Travis Street
Sherman, Texas 75090

Phone: 903-813-4778
Map & Directions

Dallas Office
100 Crescent Court
Suite 700
Dallas, Texas 75201

Phone: 214-733-1775
Map & Directions