Many Tennessee consumers are overwhelmed by their debts and believe that they will never be able to pay them off. However, some of them who have substantial levels of debt have several options to try to repay them and to improve their credit scores.

If people have poor credit but want to consolidate their debts into one manageable payment, they might be able to get a cosigned or secured loan. If they do this, it is important that they make certain to make their payments on time or else they might risk their collateral or cause financial harm to their cosigners. People who get secured loans in order to consolidate their debts should make certain that they use the proceeds to pay off their debts rather than on something else.

People might also want to talk to non-profit credit counseling agencies. These agencies may negotiate for their clients with the creditors in order to secure reduced interest rates. People make one payment to the credit agency each month, and the payment is then disbursed to the creditors by the counselor.

If people have incomes that are insufficient to pay their bills, they might also want to consider filing for Chapter 13 bankruptcy. Debtors are able to keep most of their property when they file for Chapter 13. They then make payments to the bankruptcy trustee over a period of three or five years. If they successfully finish their Chapter 13 repayment plans, their remaining unsecured debt balances are discharged. Chapter 13 may offer people the chance to enjoy a fresh financial start while ridding them of overwhelming debt. An experienced bankruptcy lawyer might discuss advise people about whether Chapter 13 is the right choice for them.