Bryan P. Keenan & Associates, P.C.
Free, Fresh-Start Consultation 412-923-4941

Providing The Advice And Options You Need To Overcome Financial Problems And Move Forward

A bankruptcy attorney who cares about you and your future. Don't let debt problems disrupt and define your life.

Bryan P. Keenan

Some attempts to clear credit card debt make matters worse

Pennsylvanians who find themselves struggling with credit card debt and other accruing expenses will oftentimes listen to any advice to try to get into a better situation without filing for bankruptcy. There are many reasons why people avoid bankruptcy, including a belief that they are not upholding a responsibility, as well as a failure to understand exactly how beneficial bankruptcy can be. It is only after they have made a series of mistakes with popular debt solutions that they find they are not solutions at all. After that, they might consider other, time-tested strategies. To successfully utilize these strategies, individuals often turn to legal professionals.

Some of the ways in which people try to get out of overwhelming debt are taking on a consolidation loan, cashing out with mortgage refinancing, and taking a loan on a retirement plan. In the short-term, these tactics might seem to quell the pressure exerted by companies seeking to collect on credit card debt. However, over the long-term they generally make the situation more difficult. Taking out a consolidation loan, even one with a low interest rate, might seem wise. Yet, there are often disadvantageous terms and costs that are buried in the fine print. As such, pursuing this option might not make a person's finances better than they would be if they chose to file for bankruptcy.

With credit card debt reaching its worst levels in more than a decade, people are becoming delinquent on their payments. Taking on a personal loan in an attempt to ease credit card debt is a strategy that is becoming more prevalent. A cash-out mortgage is a way people take out a loan for current debt. With that, they are paying off a current mortgage with a new mortgage and receive cash for what is left. They are doing this to pay other bills, but such a move essentially reduces the equity in their property.

These tactics may avoid bankruptcy in the short-term, but they rarely solve the problem. Companies understand the desperation debtors feel as they try to stay one step ahead of their credit card debt and capitalize on it with these products. Before taking these offers, it is wise to consider a Chapter 7 or Chapter 13 bankruptcy, as these are very real solutions to credit card debt..

No Comments

Leave a comment
Comment Information
Email us for a Response

Solutions May Be Just An Email Away

Bold labels are required.

Contact Information
disclaimer.

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.

close

Privacy Policy

Bryan P. Keenan & Associates, P.C.

993 Greentree Road
Suite 101
Pittsburgh, PA 15220

Phone: 412-923-4941
Fax: 412-444-0158
Pittsburgh Law Office Map