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Debt Consolidation

Q&A: Bankruptcy may be best option for indebted widow

May 4, 2025 By Liz Weston Leave a Comment

Dear Liz: I am an 82-year-old widow with a disabled daughter in a desperate financial situation. Payments on my credit cards and a personal loan eat up half the income I get from Social Security, my late husband’s pension and my IRA. My total debt is over $100,000 and my only assets are a car worth $35,000 and the fast-dwindling IRA with just $25,000. I need advice on how best to proceed: bankruptcy or loan consolidation or something else?

Answer: Please make an appointment with a bankruptcy attorney as soon as possible.

There are other solutions for debt, including a debt management plan through a credit counselor, debt settlement or a consolidation loan. Debt management allows people to pay off what they owe over time, often at a lower interest rate. Debt settlement involves negotiating with creditors to accept less than what they’re owed. A consolidation loan replaces multiple debts with a single loan, often at a fixed interest rate.

Your situation is simply too dire for these other methods to make much sense, however. Bankruptcy could allow you to legally erase the debt and preserve what’s left of your limited funds.

Filed Under: Credit & Debt, Q&A Tagged With: Bankruptcy, credit counseling, Debt Consolidation, debt management, debt settlement

Wednesday’s need-to-know money news

February 10, 2021 By Liz Weston

Today’s top story: The pros and cons of debt consolidation. Also in the news: The basics of travel cancellation refunds and vouchers, cheaper ways to access your credit line, and 5 considerations before becoming a digital nomad.

The Pros and Cons of Debt Consolidation
Consolidating may be a good idea if you can qualify for a low interest rate, make payments on-time and stay out of debt in the future.

Travel Cancellation Refunds and Vouchers: The Basics
Getting a refund depends on the type of travel booking you made and how far in advance you canceled.

Card Issuers Are Offering Cheaper Ways to Access Your Credit Line
Costly cash advances are no longer the only option for tapping into your available credit. But there are drawbacks to be aware of.

5 Considerations Before Becoming a Digital Nomad in the U.S.

Filed Under: Liz's Blog Tagged With: accessing credit, Debt Consolidation, digital nomad, pros and cons, travel cancellation refunds, travel vouchers

Thursday’s need-to-know money news

June 20, 2019 By Liz Weston

Today’s top story: How to share a deed without an ‘I Do.’ Also in the news: 15 financial tasks for those preparing for a baby, 5 myths about debt consolidation, and why you should always check your automatic bill payments.

How to Share a Deed Without an ‘I Do’
Protecting your individual investments.

Preparing for a baby? Make sure you tackle these 15 financial tasks
Things are about to change.

5 myths about debt consolidation
Separating fact from fiction.

Always Check Your Automatic Bill Payments
You could be missing increases.

Filed Under: Liz's Blog Tagged With: automatic billing, couples and money, Debt Consolidation, deeds, financial tasks, parents-to-be, real estate

Monday’s need-to-know money news

June 10, 2019 By Liz Weston

Today’s top story: Amazon, Synchrony launch credit builder card. Also in the news: 5 reasons to keep renting, 5 steps to consolidate your debt with a personal loan, and when to use cash instead of credit.

Amazon, Synchrony Launch Secured Credit Builder Card
Amazon targets the secured credit market.

5 Reasons to Keep Renting
More freedom?

5 Steps to Consolidate Your Debt With a Personal Loan
What you need to know.

When to Use Cash Instead of Credit
Going old school.

Filed Under: Liz's Blog Tagged With: Amazon, cash vs credit, credit builder, Credit Cards, Debt Consolidation, rent vs own, Synchrony

Thursday’s need-to-know money news

June 6, 2019 By Liz Weston

Today’s top story: 5 steps to consolidate your debt with a personal loan. Also in the news: 5 myths about debt consolidation, collection costs on defaulted student loans, and the pitfalls of promotional APR credit cards.

5 Steps to Consolidate Your Debt With a Personal Loan
A to-do list.

Forget These 5 Myths You’ve Heard About Debt Consolidation
Separating truth from fiction.

How Much Are Collection Costs on Defaulted Student Loans?
Your balance could increase by 40%.

Think Long and Hard Before Using a Promotional APR
The small print could get you.

Filed Under: Liz's Blog Tagged With: Debt Consolidation, defaulted student loans, myths, promotional APR credit cards

Thursday’s need-to-know money news

January 31, 2019 By Liz Weston

Today’s top story: 5 divorce mistakes that can cost you. Also in the news: How to achieve financial independence without retiring early, consolidated debt and how to do it right, and where to go when you have a travel insurance problem.

5 Divorce Mistakes That Can Cost You
Curb your social media.

How to Achieve Financial Independence Without Retiring Early
A worthwhile goal.

What Is Consolidated Debt and How to Do It Right in 2019
Don’t start charging again.

Where To Go When You Have A Travel Insurance Problem
Being your own best advocate.

Filed Under: Liz's Blog Tagged With: Debt Consolidation, Divorce, divorce mistakes, financial independence, Retirement, tips, travel insurance

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