As the largest city in Washington, Seattle provides its residents with fabulous career opportunities, exceptional culture and proximity to many stunning natural areas for recreation. While there is much for Seattle’s residents to love about life in their hometown, many have their fair share of concerns as well. Money worries are at the top of the list of concerns for many area residents. The city has an unfortunately high cost of living, and many individuals also struggle with high credit card balances and high monthly debt payments. The combination of these two factors can make it difficult for some to make ends meet. If you are ready to take control of your financial situation and do something about your credit card debt, applying for a consolidation loan may be a great option. Through debt consolidation, you may even be able to achieve a debt-free status within a few years.
The Personal Finances of Seattle Residents
There are many wealthy Seattle residents who have a charmed life free of concerns about credit card debt, but many other residents struggle to make minimum monthly payments on credit cards. One of the reasons for this may be because of the city’s high cost of living. The typical homeowner in Seattle pays $2,289 per month for a mortgage payment according to the U.S. Census Bureau. Those who rent in Seattle pay $1,185 per month on average for housing. While expenses are high in Seattle, income is low. The city’s per capita income is $45,673. As many as 13 percent of residents live in poverty, and many others face dire financial conditions because of high debt balances and high living expenses. You may be able to free up several hundred dollars or more in your budget by simply paying off your credit cards, and a debt consolidation loan can position you to accomplish this goal faster and easier.
How Debt Consolidation Works
Debt consolidation is an option for anyone who has high credit card balances and who has a decent credit score. A decent credit score is generally a requirement for debt consolidation because most people will need to apply for a new consolidation loan. Several financing options may be considered for debt consolidation, such as a refinance loan on a boat or car you own free and clear, a home equity loan or even an unsecured bank loan. The features of a consolidation loan include a low interest rate paired with a fixed term, so you can see that there are many options to consider. When you are approved for your loan, the lender will send the funds to you. You can use the loan funds to pay off credit cards in full. It is wise to close most of your credit card accounts so that you avoid falling into debt again in the future. Then, you simply make regular payments to your single loan each month. The new loan will have a lower total monthly debt payment than you are currently paying, so it can save you money in your budget each month. It also will contribute more of each payment to debt reduction, so your account balance will be paid off more quickly. With a fixed term loan, the debt will be entirely paid off at the end of the term. You may also appreciate the fact that you only have one debt payment to make rather than several as this is easier to manage.
What the Law Says About Debts in Seattle
Seattle law allows you to consolidate your debt to a new account. This is because you are basically refinancing all of your accounts into a single loan with better terms. While there are not laws prohibiting debt consolidation, there are laws that enable creditors to pursue legal action against you if you fail to pay them the money you owe.
The goal of paying down and eventually paying off credit cards can seem lofty, but rest assured that it is attainable. A debt consolidation loan gives you an excellent strategy for debt reduction and elimination. If you are ready to do something about your current debt situation, explore the financing options available to you for debt consolidation today.