EXHIBIT 16.1


KPMG Peat Marwick, LLP
One Insignia Financial Plaza
P O box 10529
Greenville, SC  29603



Securities and Exchange Commission
Washington, DC  20549


December, 22, 1998

Ladies and Gentlemen:

We were previously principal accountants for The Thaxton Group, Inc. and
subsidiaries (the Company), and under the date of March 25, 1998, we reported on
the consolidated financial statements of The Company as of and for the years
ended December 31, 1997 and 1996. On December 14, 1998, our appointment as
principal accountants was terminated. We have read the Company's statements
included under Item 4 of its Form 8-K dated December 14, 1998, and we agree with
such statements except that we are not in a position to agree or disagree with
the Company's statement that the determination to change the Company's principal
accounting firm was approved by unanimous consent of the Board of Directors or
that the Company's Audit Committee recommended the change of principal
accountants to the Board of Directors.


Very truly yours,


/s/  KPMG Peat Marwick, LLP