Bankruptcy: Using Other Lines of Credit to Escape Debt

Being in debt can be a stressful and harrowing experience, and those who face the struggle of financial hardships may go to great lengths just to get by. While paying down on debts is the preferred outcome in most situations, in some cases, a person in Ohio may feel the only way to do this is to use other lines of credit for relief. Unfortunately, this mindset could only lead to a never-ending cycle of monetary struggle, whereas bankruptcy could provide a person with a much-needed fresh start.

Studies suggest that similar concerns have left many individuals turning to outlets such as a personal loan for financial relief. Experts indicate that the decision to use a personal loan to pay off other high risk debts has created a new concern. According to reports, the balances on outstanding personal loans reach totals of more than $125 billion, and while this might not seem as significant as the totals for credit card debt, it is still a rising issue.

There are a variety of scenarios in which one might seek to take out a personal loan. However, studies indicate that more than 60 percent of loan requests are made with the intent of obtaining relief from debts. Experts also indicate that many of those who seek relief through a personal loan may be concerned with how their debts are affecting their credit scores. Although these lines of credit may have lesser interest rates on average, using debt to pay off debt may still be a risky decision.

Regardless of the source of one’s financial woes, those who struggle under the weight of debts may wish to know more about all their options for relief. By consulting with a bankruptcy attorney, a person in Ohio could obtain much-needed advice in making informed decisions regarding his or her financial future. An attorney can address a client’s concerns and assist him or her in forming a strategy to reduce or eliminate debts through the necessary channels.