Consumer debt is a serious problem for many residents in Jacksonville. For many, high debt balances on credit cards and loans creates high monthly debt payments. This unfortunately can strain your budget unnecessarily. You may have thought how much better your life would be if you had the extra money in your budget from those debt payments. Unfortunately, paying off high interest rate credit cards and loans is not an easy task, and you may be wondering if there is a better way to accomplish your goal. Some people even get frustrated because it seems like debt balances are actually increasing despite their best efforts to pay down the accounts. If you can relate to this and are looking for a feasible solution, debt consolidation may be a great option to consider. Many Jacksonville residents have already refinanced their debt into a consolidation loan and are enjoying the incredible benefits.
The Personal Financial Situation in Jacksonville
Jacksonville is a diverse city, and there is a huge spread of income ranges among residents. Some have been fortunate enough to achieve financial security, and burdensome debt payments are not generally a problem for these individuals. For many others, however, debt is combined with low income and high housing expenses to create a challenging situation. The U.S. Census Bureau reports that the average per capita income for Jacksonville residents is approximately $$25,600 per year. The average homeowner in Jacksonville makes a mortgage payment of $1,344 per month, and the average renter pays $935 per month in rent. Approximately 18 percent of area residents live in poverty, and many others struggle to make ends meet because of the combination of high expenses and low income. Freeing up extra money in your budget through debt reduction is possible, and debt consolidation is an effective method to accomplish this goal.
What Is Debt Consolidation?
Debt consolidation is considered to be a form of debt relief, and it is one of the first forms of debt relief you should seek. This is because it will not damage your credit rating like other forms of debt relief can. For example, bankruptcy and debt settlement are also forms of debt relief, and these can damage your credit rating for several years. Through debt consolidation, you will refinance all of your outstanding high interest rate accounts into a single account with a lower interest rate. Ideally, this new account will have a fixed term. When you re-establish your existing debt on a low interest rate account with a fixed term, you will enjoy several great benefits. For example, you can generally expect your monthly debt payments to be substantially lower than what they are currently. This can free up money in your budget that you may desperately need. In addition, more of each payment will be applied to principal, and this means that you can enjoy faster debt reduction. If you have a fixed term loan, all of your debt will be eliminated at the end of the term, so this establishes an excellent repayment plan for you to follow. Finally, many people also enjoy the key benefit associated with easier debt management. You will only have one loan to keep track of each month rather than multiple credit card accounts.
What Are the Laws Regarding Debt Consolidation?
Overcoming debt is much easier to accomplish when you have the right strategy, but you may be curious about the legality of debt consolidation. Debt consolidation is a method of credit card refinancing. It is legal to refinance your debt from one account to another, and it is beneficial to do so when it improves your financial situation. While there are not laws regarding debt consolidation that you should be aware of, there are consumer protection laws as well as laws regarding foreclosure and bankruptcy. Your lawyer can provide you with legal advice in these areas.
Improving your financial situation can seem challenging or even impossible in some cases, but rest assured that debt consolidation has been effective with many people who have carried very high debt balances. It will take time and effort to repay the debt you owe, but the process is easier when you have a debt consolidation loan.