Columbus, Ohio, June 04, 2018 (GLOBE NEWSWIRE) -- The average household owes nearly $30,000 in auto loans. As record-setting auto debt poses financial challenges to more Americans, attorneys at an Ohio bankruptcy firm believe that debtors should take auto loans as seriously as any other type of debt.
“People who owe several debts might be tempted to pay off what appears most immediate,” said Courtney A. Cousino of the law firm Fesenmyer Cousino Weinzimmer. “Mortgages and medical debt often take the top spot, and people will miss auto loan payments or utilize loan deferment.”
Cousino said paying debt requires a more strategic approach. This means creating a plan that takes into account all types of debt
“In many cases, a sound strategy enables debtors to chip away at all types of debt, without kicking the can further down the road like one does with a loan deferment,” Cousino said. “If a person’s debts are simply too great, then there are smarter tools to overcome it.”
Fesenmyer Cousino Weinzimmer offers legal assistance to people filing for bankruptcy. While the attorneys said every client has his or her own set of needs, those with insurmountable debt in the form of credit cards and auto loans, for example, can benefit from bankruptcy.
“Auto loan debt can be dealt with directly through bankruptcy,” said Thomas M. Fesenmyer. “It’s not the path we recommend for all our clients, but it’s an incredibly effective tool for many people we represent, often allowing them to keep their vehicle and structure a payment plan they can manage.”
Danielle R. Weinzimmer said that if people don’t find a path to overcome their auto loans, they’ll incur unnecessary debt.
“Whether you’re missing payments or deferring your loan and paying added interest later, it will inevitably come back to haunt you,” Weinzimmer said. “But if you build a plan that uses the tools and resources you have at your disposal, overcoming auto debt is not as difficult as it might seem when your bills are piling up.”