Atlanta is a gorgeous, modern city that infuses southern charm with the culture and sophistication of a large city. Many of the area’s residents thoroughly take advantage of great employment opportunities offered by a robust, diverse economy. Some have managed to pay off debts and are living debt-free with financial security. For the typical Atlanta resident, this seems like a distant dream. The reality for many in Atlanta includes a tight budget and high debt balances. In some cases, it may seem impossible to reduce debt balances on your own, and you may be stressed out by your financial situation as a result. If you are eager to improve your finances and are looking for a feasible solution for dealing with debt before it grows to an even bigger problem, debt consolidation may be a great option to use.
Why Budgets Are Tight in Atlanta
The financial situation of area residents varies drastically. Some individuals in Atlanta are well-off and have minimal financial concerns. On the other hand, the U.S. Census Bureau indicates that approximately 16 percent of the area’s residents live in poverty. For the average resident, a relatively low income level is combined with high expenses to create a tight budget. The per capita income in Atlanta is $37,926. On the other hand, the average homeowner in Atlanta has a mortgage payment of $1,792 per month, and the average renter pays $1,001 per month in housing rent. As you can see, the typical budget for an Atlanta resident has very little room left each month to pay for other basic essentials, such as utilities, food, gas, insurance and more. After you have included debt payments in your budget, you may have no extra money left to enjoy life with. Debt consolidation may help you to improve your financial situation substantially.
How Debt Consolidation Works
Before you move forward with debt consolidation as a form of debt relief, you may be wondering how this process works to improve your situation. On the surface, consolidating debts simply means that you are rolling over several debt accounts into a single, large loan. Because no debt is erased as a result of consolidation, you may not be certain how consolidation helps your situation. Most debts that are consolidated are high interest credit card debts on a revolving financing term. On the other hand, most consolidation loans are low interest rate accounts with a fixed term. While no debt is erased through consolidation, how the debt is structured has changed substantially in your favor. The new structure creates lower monthly debt payments, which provides immediate relief for those with a tight budget. It also creates a situation where your debt is paid down more quickly. All debt on the consolidation loan will be eliminated by the end of your loan term. The thought of being debt-free within a few years may sound too good to be true, but this could be your reality if you consolidate your debts. You can use a home equity loan, an unsecured bank loan or even a car refinance loan for consolidation purposes in Altanta.
What the Local Laws Say About Debt Relief
Some who are interested in debt consolidation in Atlanta are unsure about the legality of this process. There are several legal forms of debt relief in Atlanta, and these include debt consolidation loans, debt settlement and bankruptcy. Because debt consolidation will not damage your credit rating like settlement and bankruptcy will, it is most commonly used by those who are stressed by debt payments and who have not yet fallen behind on payments. If you would like to protect your credit rating, consolidation is a great option to consider for debt relief.
Debt is a serious problem for many people in Atlanta, and the unfortunate reality is that high interest rate debt is often challenging to overcome on your own. Through debt consolidation, you can re-structure your debt so that it is more manageable and easier to pay off. If you believe that deb consolidation can benefit you, it is wise to explore loan options available to you today as a first step in improving your financial situation.