Can I include Back Child Support Payments in a Debt Consolidation?
Debt consolidation is a good way to get out of debt faster, but most people think of it as a tool that can only be used for credit card debt. Plenty of people have child support payments that they are late on paying, usually because of a job loss or other personal emergency. Can these debts be included in a debt consolidation loan?
What You should Know Before
Unlike other types of debt, child support payments cannot be discharged in a bankruptcy. There is also no statute of limitations for the debt, meaning that it’s possible for the state to collect on these debts for years after the child becomes an adult. In fact, there are several cases of grown children making claims against the estate of a parent for back child support.
There is also no way for anyone to reduce the amount owed. While courts can reduce the amount of future payments, they typically will not reduce the amount of child support in arrears. That amount will continue to grow as interest and court fees are added to the total. That means that people who owe back child support need to find another way to pay it off.
Can including Back Child Support in a Debt Consolidation Loan Work?
Debt consolidation can work for this type of debt, but it’s important to realize that it is harder to get a debt consolidation loan for back child support than it is for credit card debts. Because back child support payments are considered to be a debt to the state, many banks are willing to consider them as part of a debt consolidation loan. The problem is finding a loan that is affordable to the borrower.
Because many people don’t make regular payments on their back child support, it can be hard to determine how much a person can really afford every month. This is something that can be determined by a debt counselor, but the answer is usually a loan with an extended payment term. The longer time gives a person more payments, giving them a lower amount to pay every month.
It is possible to include back child support in a debt consolidation loan, but these loans can be harder to find. If you need to do this, work closely with a debt counselor to find the right loan for your situation.