Queens is an economically and culturally diverse borough in the New York City metropolitan area. Approximately 2.35 million residents call this area home, and many enjoy financial prosperity related to the borough’s exceptional job opportunities as well as proximity to jobs in other areas throughout the metropolitan area. While many local residents are financially secure, others have serious money issues related to debt. Credit card debt is one of the most common financial concerns for Queens residents, and this is because high account balances with high interest rates may be difficult to pay off. If you are looking for a great way to reduce your debt balances more quickly or to make your monthly payments more manageable, debt consolidation may be a feasible solution for you to consider.
The Personal Financial Situation for Queens Residents
Some people who are dealing with a serious credit card debt situation may feel embarrassed by their issue. For example, you may feel as though you are the only one who has such a significant issue with your credit cards. The reality is that some individuals in Queens are financially secure, and many are debt-free. However, the average citizen faces a tight budget and does have a balance on their credit cards. According to the U.S. Census Bureau, approximately 14 percent of area residents live below the poverty line. Furthermore, the average per capita income is only $26,876 in Queens, and this means that many individuals have very little money to use when paying bills each month. This very low level of income is combined with high housing expenses that the area is known for to create a tough budgeting situation for many. Consider that the average homeowner in Queens makes a mortgage payment of $2,425 per month, and the typical Queens renter pays $1,367 per month in rent. You can see that carrying credit card debt can make a tight budget even more stressful to deal with, and debt consolidation may provide the relief you need.
What Debt Consolidation Does
Understanding how debt consolidation can benefit you is a first step to take to improving your finances. Credit cards are so difficult to pay off because they have high interest rates and a revolving term. A debt consolidation loan, on the other hand, has a lower interest rate and a fixed term. When you move your debt over to a consolidation loan, you will benefit from lower monthly payments. Some people are even able to save several hundred dollars or more in their budget through consolidation, and this can dramatically improve your financial situation right away. More than that, debt consolidation enables each payment to be more effective at debt reduction. Your debt may be paid off entirely at the end of the fixed loan term, which may only be a few years from now. A debt consolidation loan may be a home equity loan, an unsecured bank installment loan, a car loan if you refinance a car that you have equity in and more. It is wise to compare the options available so that you find the one with the best rate and term. In some cases, individuals will not qualify for a debt consolidation loan because their credit scores are too low. If this is the case for you, you may still find the debt relief you need through filing for bankruptcy or working with a professional debt negotiator.
Queens Laws Regarding Debts
Some people have concerns about the legality of debt consolidation, and you may be eager to explore local laws regarding debts before you proceed. First, note that New York laws permit credit card companies to sue individuals in court who do not pay their debts as agreed in a timely manner. Second, refinancing your credit card debt to a consolidation loan with better terms is a legal option to consider. There are, however, laws regarding bankruptcy and foreclosure that may affect you.
If you are concerned about your ability to make minimum monthly payments or if you are wondering what you can do to pay debt off more quickly, you can see that debt consolidation is advantageous in many ways. Now is a great time to explore financing options available that can be used for debt consolidation purposes.