If you find it hard to get on top of overwhelming debt, you are not alone. Millions of people across the country struggle with credit card bills, auto loans and other debt obligations. Debt consolidation can make it easy for you to make monthly payments.
There are two ways that you can take advantage of debt consolidation in Michigan. First, you can use your home as collateral to take out a new loan. This new loan will repay all of your debts, leaving you with one monthly payment for all of your debts. Michigan’s bankruptcy laws allow you to keep certain property such as cars, furniture and personal effects. Many people who are considering bankruptcy decide on debt consolidation instead, opting to bundle all of their payments and simply make one payment.
Michigan’s average household income was $45,981 in 2014, putting it in 34th place overall in the United States. The majority of Michigan’s counties fall below the threshold of per capita income for the United States, and the majority of its residents earn below the median U.S. household income of $52,914. Many people in Michigan struggle with debt, and many more find relief in debt consolidation programs that keep the creditors at bay.
How Debt Relief Can Help
Debt relief stops the phone from ringing and the mailbox from filling with angry creditor letters. If you’re being harassed by bill collectors, hounded by creditors and threatened with judgments and garnishments, debt relief can bring this to an end. Debt relief can also lower your monthly payments, freeing up your budget. With debt consolidation, you can stretch out the number of months you have to repay the loan, lowering your payments and freeing up cash in your budget.
Debt relief can also provide a psychological boost. With the stress of paying off debt removed, many people find themselves better able to enjoy life and family. Consolidating debt can also raise your credit score. With fewer creditors and all of your accounts out of collections, you will become more attractive to lenders and find it easier to get car loans, mortgages and lines of credit.
Debt consolidation loans often have lowered interest rates, saving you money over time. Many people use the extra cash each month for large purchases, to start businesses or to pay for college. The key to making the most of these loans is to get educated about finances and avoid making the same financial decisions that created the debt in the first place.
Who is the Best Candidate for Debt Relief?
The best candidates for debt relief are consumers who have fair to good credit, and who have a debt to income ratio of 50 percent or higher. Consumers who have low credit scores or do not have sufficient income to repay the loan are often denied these loans. If you are seeking a debt consolidation loan, it helps to review your credit profile and take steps to get your debts current before applying. The higher your score, the lower the interest rate. Debt consolidation is especially useful for people who are considering bankruptcy and are looking for an alternative.
When it comes to getting a handle on your finances and bundling your high interest debt into one low monthly payment, Michigan debt consolidation may provide the answer. Whether you are looking to end collection calls, stop wage garnishments or avoid judgments, debt consolidation often helps to relieve the pressure.
There are many agencies and financial institutions that provide debt relief through consolidation, so it pays to do your homework to find the right one to meet your needs.