What should a survivor know about debt consolidation loans?
Be certain that you understand the terms and interest rates on a loan to consolidate all of your debt into a single loan payment. You may find that lowering your interest rate will not make your present debts more manageable. Ask yourself if you can really afford to repay the amount of the consolidation loan. Find out whether the loan will pay off over the life of the loan or whether there will later be a large, lump-sum payment or “balloon payment” due that you may not be able to afford. Use caution if you are considering debt consolidation loans. For example, one type of consolidation loan, a home equity loan, requires that you pledge your home equity to a creditor. Although most states provide consumers protection from creditors for a specified amount of equity in their home, that protection may be lost if you do not maintain your home equity loan payments. What should a survivor know about credit counseling programs? Credit counseling or debt management programs are supposed to pro
