Fresno is home to more than a half million residents, and it provides them with everything from a fabulous climate and beautiful natural areas to a rich culture and wonderful job opportunities. While the economy in Fresno is diverse and healthy, the personal financial situation of area residents is often less ideal. The reality is that many local residents carry high balances on credit cards. These are often high interest rate accounts with a revolving term, and these two features can make credit card debt difficult to pay off. If you are looking for a great way to pay down your debt and to ultimately achieve a debt-free status, using a debt consolidation loan may be a great option to consider. By learning more about how debt consolidation can help you, you may be ready to apply for a loan today.
The Personal Financial Situation in Fresno
Credit card debt is unfortunately common across the country, and it is problematic for Fresno residents as well. In Fresno, the U.S. Census Bureau reports that almost 14 percent of residents live in poverty. With the city’s average per capita income at $28,930, you can see that many people have a relatively low income in this city. In addition to having a low income, many face high expenses. The housing expense, for example, is rather high. For example, the average homeowner pays $1,492 per month as a mortgage payment, and the typical renter pays $928 per month for housing. When you combine this housing payment with high credit card payments and a low income, you can see why many Fresno residents struggle with a tight budget each month. The good news is that a debt consolidation loan may help you to get back on track financially.
How a Debt Consolidation Loan Helps
If you are not familiar with how debt consolidation loans work, you may be confused about why transferring debt from one account to another can help you. There are two key difference between credit card debt and a debt consolidation loan. First, the interest rate on a debt consolidation loan is substantially lower than the rate on credit cards. Second, credit cards have a revolving loan term while consolidation loans usually have a fixed term. With these two important differences, you will be able to reduce your monthly debt payments. This can free up your tight budget so that you can live more comfortably in the years to come. It also means that your debt is paid down faster. The fixed term loan actually establishes a payment plan for you. When you reach the end of the loan term, the debt will be entirely gone. In this way, a debt consolidation loan can actually help you to entirely eliminate credit card debt from your life. You will, however, want to close your credit card accounts after you transfer the balances so that you do not charge the accounts up again. Debt consolidation loans may sound amazing, but bear in mind that some Fresno residents who could benefit from them will not qualify. This is because you generally need to have a good credit score in order to qualify for a new loan. If your credit scores are too low to qualify for a consolidation loan, debt relief may still be available to you through bankruptcy or debt settlement.
Are Debt Consolidation Loans Legal in California?
Some people who are not familiar with debt consolidation loans worry about the legality of them. Consolidating debt simply means that you are refinancing your debt. The law in California allows residents to refinance debt to a new account. While this aspect of the law can help you, keep in mind that California law also allows credit card companies to sue you and to force payment if you fail to make your minimum monthly payments. As you can see, it may be best to act quickly to consolidate your debt.
Debt consolidation may sound complicated, but it is easier to do than you might think. To get started, you simply look for a great account with a low interest rate and a fixed term. Once the account is open, you transfer funds to it to complete the consolidation. Then, you make a single loan payment to your new account each month. You can begin looking for a loan to use for consolidation today.