Tennessee residents who are experiencing financial troubles have options for getting credit card debts under control. People with decent credit ratings could have the option of transferring debts to a new credit card that offers zero percent interest on balance transfers. This move might grant a holder six months to two years of interest-free time to pay down the balance.

A personal loan could be another method for consolidating debts. If a person possesses a sufficient credit history to qualify, this type of loan should reduce the overall interest rate on the debts.

Lenders might also present people with the option of a home equity loan for paying off consumer debts. Financial experts, however, warn against this temptation unless it is absolutely necessary. Although a home equity loan might appear to offer a low-interest solution, unsecured debts should not be transformed into a secured debt. Unsecured debts are easier to discharge in a bankruptcy. A home equity loan might also endanger a person’s home if the payments cannot be met.

Bankruptcy offers some people a path to debt relief as well. If someone’s debts cannot be paid within five years or they represent more than half of personal income, bankruptcy might be a viable course. An attorney could help a person evaluate the variables and make a decisions about filing for bankruptcy. Important goals such as stopping a foreclosure or getting a fresh financial start might be achieved by working with an attorney to discharge debts or set up a manageable payment plan. An attorney could establish terms that allow the client to recover from financial setbacks. These services could end harassment from bill collectors and allow people to rebuild their credit rating.