Consumer debt is growing every year. Of course most people want to make progress paying OFF debt but for many it means taking out a personal loan.
Some believe personal loans or debt consolidation loans are a solution to get ONE payment at sometimes a lower interest rate. If you have several different bills, you can take a personal loan to have a single payment.
But is it a Band-Aid for a wound? Taking on debt to pay debt even at a lower interest rate does not eliminate the interest or the balance. Chapter 13 bankruptcies with Geraci Law are ZERO interest and structured into a 3-5 year repayment plan. A Chapter 7 eliminates debt meaning you have ZERO debt.
According to a study from online lender Lending Tree, the outstanding personal loan balances are close to $125 million! More and more people believe a personal loan is a debt management solution. Consider other options rather than the catch 22 of paying debt with debt!