Attorneys Edward Hizer and Brian Hizer

About Debt Consolidation Loans

Experienced Toledo Bankruptcy Lawyer providing Personal and Business Bankruptcy Attorney legal needs in Toledo, Northwood, Oregon, Sylvania, Lucas County, Wood County, and the surrounding Northwest Ohio communities.

Call Lawyer, Edward Schimmel at 419.693.0911

Call Lawyer, Brian Hizer at 419.841.3600

A Debt Consolidation loan is a personal loan which that allow people to consolidate their debt into one monthly payment.

Because they are offered by your bank you have dealt with for years, and with a smile, on the surface many people think it is a good idea, because your bank is "helping you out."

The idea seems enticing because they offer payments which may be lower, as the Debt Consolidation Loan is spread out over a much longer period of time.

What people do not realize is that although the monthly payment may be lower, the true cost of the loan is often dramatically increased when the additional costs and interest over the term of the loan are factored in.

If someone on the street told you they would give you $100.00 if you agree to pay them 35% a week for six weeks, while they may have helped you out for your immediate need, you actually are paying back $210.00 for a $100.00 loan. Most people would say no way to this proposal. But the problem is with a Debt Consolidation Loan, over the long haul, on a $5000.00 Debt Consolidation Loan, you could be required to pay back $6500.00 or more over the term of the loan. Just because a Debt Consolidation loan come with a smile and a handshake does not mean it is in your best interest.

Because debt consolidation loans are typically offered to those who are already in a financial bind, they are considered high risk, and therefore the interest rates on personal debt consolidation loans are usually high. Any the worst part is debt consolidation loans are being offered by "finance" companies. people who know the risks, and would not recommend the same solution to those who are more financially savvy and secure than you are, due to your present circumstances.

Personal debt consolidation loans can be either secured or unsecured:

  • Unsecured loans are made based upon a promise to pay;
  • Secured loans require collateral. Upon default of the loan payment in a secured loan, the creditor has a right to repossess and sell any of the items listed as collateral for the loan (such as a car, truck, or other possessions of value).

Some creditors require you to list household goods in order to obtain a debt consolidation loan. While the creditor does not have any desire to obtain your household goods, they instill the fear of loosing your household goods as a deterrent to ensure you make your payments on time.

In many States, failure to pay off the loan may result in the lender having the right to repossess your household goods. However in various States, you may have the right to have the lien on you household goods removed as collateral in a bankruptcy, and still eliminate the debt.

Be careful about putting up your valued property as collateral. With high interest rates and aggressive collections, you could very well find yourself worse off and fighting to save your car, truck or other personal property.

Brian Hizer and Edward Schimmel have the experience and resources to effectively guide you through the bankruptcy legal process. We always strive to provide the highest standard of legal representation to aggressively pursue your bankruptcy legal goals.

If you require experienced legal advice and representation from a qualified Bankruptcy Law attorney (lawyer), please call our offices to schedule a confidential legal consultation.

Call Lawyer, Edward Schimmel at 419.693.0911

Call Lawyer, Brian Hizer at 419.841.3600


CALL US TODAY AT    419.693.0911 in the Toledo / Northwood Area or 419.841.3600 in the West Toledo / Sylvania Ohio Area

Toledo Ohio and Northwest Ohio Attorneys Attorney, Edward Schimmel & Brian Hizer | Hizer & Schimmel | 419.693.0911 or 419.841.3600

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