Ohio Debt Consolidation

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  • Strictly writing, debt consolidation means turning many loans into one loan with a lower interest rate.
  • Usually, debt consolidation loans are just home equity loans wearing different clothing, because they require collateralization, or the pledge of some property to secure the loan.
  • They use the equity in your home to pay off unsecured debts, like credit cards.
  • This puts a home on the line, where with unsecured debt the lenders have no collateral to repossess and less leverage over the debtor.
  • These loans usually have costly fees and extend the life of the loan.

Ohio Student Borrowers Might Benefit

  • One type of debt consolidation that can really be an advantage to debtors is student loan consolidation, which usually combines different types of student loans into one loan, with a lower, fixed interest rate, and a single payment.
  • Federal student loan consolidation usually occurs without any fees being assessed to the debtor.
  • Student loans consolidated under the Direct Loan program have very generous forbearance and repayment options that make borrowing for education over a long term, under real-life conditions, possible for different types of Americans in different types of careers.

Repayment, Settlement, Consolidation

  • In Ohio debt repayment programs, debtors enroll in a program where a company arranges repayment terms on the troublesome accounts, often reducing rates and fees in the process.
  • That company takes a “vig” or premium for the service, which it charges on top of the single monthly payment it collects and distributes to the creditors. Sometimes this means the debtor’s payment does not change significantly.
  • Other services take advantage of “double payments” by submitting weekly payments to creditors instead of monthly, resulting in several extra payments per year, thereby reducing principal, which reduces interest, which reduces payment amounts or time on the debts.
  • If you have one or two accounts out of hand, or you have a good faith dispute with a creditor about an amount, or you have just come to despise 5/3rd Bank, it might be in your best interest to try to negotiate a settlement with that creditor, or refinance that debt by consolidating it with another debt, or moving it to another open line of credit.

The Bankruptcy Option

If you’re an Ohio debtor consistently trying to refinance, or you’re continually paying off credit cards at the expense of your home’s equity, or you get deja vu, and not in a good way, when you watch Ocean’s Eleven, it’s probably time to contact the Marlowe Law office and make an appointment for consultation regarding an Ohio chapters 7 bankruptcy or an Ohio chapter 13 bankruptcy.