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Archive for the ‘Loan Debt’ Category

Is Taking Out a Loan a Smart Way to Get Out of Debt?

January 6th, 2015 at 10:43 pm

getting a loan, San Antonio bankruptcy attorneyNo one wants to be in serious debt, however, carrying some form of debt is unavoidable. To start, everyone needs to build credit, and one of the most effective ways to accomplish this is by taking on “good” amounts of debt and paying it off in a timely fashion.

While credit can be a luxury for some, for others—especially those in a low income bracket—credit becomes a way to help with bills, groceries, and other daily expenses. Unfortunately, even a small amount of debt can be a precursor to bankruptcy if a person falls on hard financial times.

The truth is that filing bankruptcy is a smart decision in many cases. However, there may be other ways to solve debt problems. One method that many people consider is consolidating debt by taking out a loan. This often is an effective strategy, but it is important to understand a few basic aspects about debt and loans.

Understanding What Taking Out a Loan Means

When the money from a loan comes in, paying off credit cards and other debt can feel like a giant weight has been lifted. With a zero balance and no creditor phone calls, one might even feel like they are out of the woods. It is important to understand, however, that the debt is still there and requires payment.

Start Putting Money Away, Know How Much You Owe, and Do Not Add to the Debt

It is important never to lose sight of how much debt you actually owe. An effective strategy is to write down the total amount of the debt while slowly saving enough money to meet each payment—or to pay it off entirely.

There are a lot of benefits to taking out a loan. According to BB&T, loans often have lower interest rates, and placing all of the debt into one area can really make a difference when it comes to focusing one’s own finances. By sticking to basic fiscal wisdom, a personal loan can be a tremendously beneficial means of taking control of debt.

If you need to speak with a Texas bankruptcy attorney, contact the Law Offices of Chance M. McGhee. Call us today for a free consultation at 210-342-3400.

Tips for Homeowners Who Are Struggling with Mortgage Payment Difficulties

December 22nd, 2014 at 8:48 pm

San Antonio bankruptcy attorney, Texas forclosure lawyer, Owning a home is one of life’s great accomplishments, and mortgages help people achieve this dream. Home loans, however, can become burdensome when an individual or family enters difficult financial circumstances.

Some homeowners face bankruptcy or foreclosure as a consequence of struggling to meet mortgage payments. Fortunately, experiencing tough economic challenges does not always mean debtors will lose their homes or declare bankruptcy. Here are some helpful tips when monthly payments become difficult to afford:

1. Review Your Mortgage and Contact Your Loan Provider

Understanding the type of mortgage a person has is key to responsible financial planning. According to, there are three main types of mortgages: fixed-rate, adjustable rate, and a hybrid between the two. These categories may influence the best approach to debt management.

The first step for tackling payment challenges is to call the bank or loan provider. They will be able to review the details of the loan and possibly offer suitable options to make payments more manageable.

2. Know What to Do If You Fall Behind on Payments

Many homeowners may find themselves one, two, or more payments behind on a mortgage. While this is never a great sign, it does not mean all hope is lost. Depending on one’s financial situation, the details of the mortgage, and the current balance, there may be several options available to reestablish financial stability.

If you are struggling with mortgage debt, bankruptcy may be a viable option. Although this is a serious choice, it is often a smart decision.

An experienced Texas bankruptcy lawyer can help you assess the options and determine if filing bankruptcy is an intelligent move. This is not the only option, which is why it is so important to seek professional advice. To schedule a consultation with a bankruptcy lawyer in Texas, contact the Law Office of Chance McGhee today at 210-342-3400 for a free consultation.

Understanding the Different Forms of Debt

December 16th, 2014 at 11:06 am

Texas forms of debt, San Antonio bankruptcy lawyerMany Americans are aware different types of debt exist, but may not know some forms of debt are more manageable than others. The type of debt also can affect an individual’s options when trying to file bankruptcy.

According to Investor Place, the average American citizen carries $225,000 or more in debt. This accounts for America’s total debt in credit cards, mortgages, and various loans, as well average interest rates and the percentage of citizens with more than $500 put away in a savings account.

Credit Card Debt

Debt from credit cards is incredibly common. As an unsecured form of debt, banks and lenders consider an individual’s credit score when determining eligibility for credit cards and their credit limits. Unfortunately, high interest rates can make credit card debt escalate quicker than most people realize. Also, having too much debt on a card—even if the card has not reached its limit—can reflect poorly on one’s credit score.

The key to managing credit card debt is to keep balances about halfway below the spending limit and to meet or exceed each monthly payment. This will go a long way toward building good credit, making an individual appear reliable.

Debt from Loans

There are a variety of loans available to the average consumer. Auto loans, business loans, and mortgages are some of the most common.

If you are struggling to keep up with high amounts of debt from credit cards, loans, or a combination of both, bankruptcy might be a viable option. As an experienced and trustworthy Texas bankruptcy attorney, Chance M. McGhee is ready to help those struggling under crushing amounts of debt. He has been refining his understanding of bankruptcy law for the past 20 years. Contact the San Antonio Law Offices of Chance M. McGhee today at 210-342-3400 for a free consultation.

Call today for a FREE Consultation


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