If you have decided to settle down in East Seattle, you may have been drawn to the area because of its proximity to the downtown Seattle area, its rather affordable cost of living and its great job opportunities. The area holds the promise of a better financial future for its residents, and you may have eagerly relocated in this area with the hope of paying down debt and increasing savings account balances. Unfortunately, credit card debt can be difficult to pay off on your own, and you may need a better strategy to accomplish your goals. Debt consolidation is one effective strategy that many others in East Seattle have used to pay off their credit card debt, and a closer examination of how consolidation works may show you why this is the move you want to make today.
What Personal Finances Are Like in East Seattle
While the U.S. Census Bureau reports that Seattle’s per capita income is $45,673, the per capita income in East Seattle in 2015 was more than $53,000. The average single family home in East Seattle, however, is valued at more than $550,000. You can see that the typical housing expense in East Seattle can be astronomical in comparison to the typical income of the average resident. If you are forced to make a high housing payment each month along with high credit card payments, you may be feeling financial stress while living in East Seattle. Debt consolidation can provide you with immediate relief by lowering your monthly debt payments, and it gives you other great benefits for long-term financial gain as well.
The Debt Consolidation Process
Factors like the financing term and interest rate are two of the top factors that affect what your monthly debt payments will be. With a credit card, you typically have a high interest rate and a revolving term, and this creates very high monthly debt payments with most of the payment being applied toward interest charges. With a consolidation loan, you may have a lower interest rate and a fixed term, and this means that you have a lower payment with more of the payment being applied toward debt reduction. As you can see, how the loan is structured is critical to your budget, and a debt consolidation loan offers superior financing terms. To obtain a consolidation loan, you must first determine if you could qualify for a loan. Consolidation loans often are home equity financing programs, auto or boat refinancing programs or bank installment loans. These loan options may require you to have good credit scores in order to be approved for the loan you need, so debt consolidation may not be right for you if your credit scores are low. Filing for bankruptcy or pursuing debt settlement through professional negotiations may be better options for those with low credit scores. If you can qualify for the debt consolidation loan, you simply use the proceeds from the consolidation loan to pay off your credit card account balances. Close your accounts after paying them off so that you avoid making future charges on them. Then, you can begin to enjoy lower monthly debt payments and faster reduction in account balances.
The Legal Aspects of Debt Consolidation in East Seattle
If you are wondering if debt consolidation is legal, you will be pleased to learn that East Seattle residents can consolidate their debts legally. There are a few debtor laws in Washington that may affect you, however. For example, some debtor laws relate to how and when a collection company can contact you regarding payment on outstanding debt. Laws also permit credit card companies to sue account holders in court if they do not make payments as agreed.
Improving your financial situation through debt consolidation can help you to avoid legal issues related to your debt and can improve your finances with immediate and long-term results. Regardless of whether you need to lower your monthly payments or you are trying to pay debt balances off quickly, consolidation may be a great option to consider. Review the financing solutions available to you today as a first step toward finding the right loan to apply for.