As you learn more about bankruptcy, you may begin to think this is the only way to escape your past financial mistakes and lead a better life in the future. While many people have saved themselves through the bankruptcy process, this is not something you take on in Tennessee without a clear cut idea of the consequences.
If bankruptcy is on your mind but you are open to other options, it is time to consider the pros and cons of debt consolidation. You may soon find that this is one of the better ways to improve your situation, all without the downfalls of bankruptcy.
Here are three ways to consolidate debt:
-- Home equity line of credit. This is not the right fit for everybody, but it could be just what you need if you have equity in your home. Use a line of credit to bring all your debt under one roof.
-- Transfer debt to a low interest credit card. If you have a low interest credit card, you can do this with ease. Even if you don't, you can apply for one.
-- Take out a debt consolidation loan. This allows you to combine all debts into one loan.
If you are seeking a way to avoid bankruptcy, you should look into every alternative that exists. For many, debt consolidation has been just what they needed to get back on track.
Final note: Debt consolidation may be simpler than bankruptcy, but there are still many details that deserve your attention. If you don't do this right, it could cause even more stress in your financial life.
Source: FindLaw, "Finding a Bankruptcy Alternative," accessed Jan. 21, 2016