If you are taking a closer look at the benefits of debt consolidation in Philadelphia, you are not alone. While the news media reports regularly that the economy has improved in many areas, the reality is that many people are still struggling to make ends meet. Some have turned to credit cards to cover regular expenses, such as gas for the car and groceries. Others have experienced financial hardship because of an illness or another unexpected situation. If you are looking for debt relief, it can be helpful to review all of the options available to you.
A Closer Look at Debt in Pennsylvania
The U.S. Census Bureau reports that the median monthly mortgage payment for Philadelphia’s residents is approximately $1,239, and those who rent pay approximately $922 per month for housing. When you take into account the fact that the per capita income in the area is less than $23,000 and that more than 26 percent of the city’s residents live in poverty, you can see that debt is a serious issue for many local residents. Keep in mind that while more than a quarter of the city’s residents live in poverty, many others live in a tight financial situation just above the poverty line. Debt consolidation is one form of debt relief that you can pursue if you are stressed out by mounting bills.
What Are Debt Relief Laws in Pennsylvania?
In Pennsylvania, the law provides those in serious financial trouble with several ways to seek relief. The most common option available is debt consolidation. Through this option, you may combine two or more debts into a single loan, and you may be able to enjoy a more affordable monthly payment or easier debt reduction as a result. While this is an effective way for many Pennsylvanians to regain control over their financial situation, it is not ideal for all situations. Those who need more significant assistance may need to pursue debt negotiations or even file for bankruptcy. With these options, you may consider speaking with a legal professional to learn more about your rights before you pursue them.
The Benefits of Debt Relief
Because there are several different types of debt relief that you can pursue, there are various benefits to consider. With debt consolidation, for example, you may be able to reduce your total monthly debts so that your budget is manageable once again. You may also be able to set up the debt on a lower interest rate with a great term so that you can more easily and quickly reach a debt-free status. This option typically does not have a negative impact on your credit rating, and this is in contrast to debt negotiations and bankruptcy. These latter options can negatively impact your credit rating for years to come. All options, however, may reduce the financial stress you are feeling.
Who Can Benefit From Debt Relief?
There are specific qualifications that must be met before you can file for bankruptcy. If you are in such a dire financial situation that you are contemplating bankruptcy, a consultation with an attorney can provide you with details about these requirements that must be met. Because bankruptcy and debt negotiations can negatively affect your credit rating for years to come, it is wise to review the benefits of debt consolidation as a first step. Anyone who has credit cards, loans or other types of revolving or installment loan debts may qualify for this form of debt relief. This is because the process simply involves refinancing one form of high interest debt to another form of debt that may be easier for you to manage.
You may currently be unable to pay all of your bills because of a high debt balance, or you may barely be making ends meet. If a high debt balance is resulting in your financial issues, debt relief may be available. As a first step, learn more about debt consolidation to determine if this option is feasible for you. If it will not provide the level of debt relief you need, you may pursue other options, such as debt negotiations or bankruptcy. Taking steps now to improve your financial situation can help you to alleviate the stress you are feeling and move on to a brighter future.