Discussing the socioeconomics in Pennsylvania is an interesting discussion, because so much of the state varies in terms of work, schooling, education, and income. With several famous and well-known universities and colleges, education is available and many people who reside in Pennsylvania are college educated. The average value of a home in the state is approximately $97,000. The state features many high-end and low-end cities and counties in terms of income, and the people who live here are not immune to debt. As a whole, Americans carry around $16,000 in just credit card debt in the United States. It’s a little lower than that on average for those who reside in Pennsylvania, but it’s enough to make many families struggle each month to pay their bills and live comfortably.
Wealth and Poverty in Pennsylvania
Pennsylvania is as average as you might imagine in terms of poverty and wealth. It’s not good or bad generally speaking, as there are more stages with wealthier and poorer residents located all over the country. What stands out is the difference between wealth and poverty here. A shockingly low 1.9% of Pennsylvania residents earn more than $200,000 per year while 9.7% earn less than $10,000 per year. Nearly 11% of the entire population of Pennsylvania lives below the national poverty level.
The Benefits of Debt Relief for Those Who Need it Most
Considering how many people in this state live well below the poverty level, it’s not surprising so many people live with ample debt they cannot afford to pay. Those who do have debt they struggle to pay have some options to help relieve the burden of their financial mess. Those with good credit and an ability to make their monthly payments without worry are able to secure loans through their bank or credit union with which to consolidate their debt into one lower monthly payment with one lower interest rate rather than several.
For many, however, this option is not available. Poverty-stricken Pennsylvania residents who don’t make much money and have already missed payments or stopped making payments to their creditors all together are the most likely candidates for debt consolidation and debt relief programs offered to Pennsylvania residents.
This is a program offered by several companies called debt relief companies. They require their customers have already stopped making payments to their creditors, and they want you to let them handle your issues. They’ll take your debt information and negotiate a settlement with each creditor. This means you’ll end up paying the creditor far less than you owe them if they agree to it, and you’ll do it all within 5 to 7 years. All your debt payments are consolidated into one low payment with one low interest rate, and the company you pay then disperses your payments to creditors as they are received until each one is paid off.
The benefits are numerous.
- No more late payments
- Less expensive interest
- Less expensive pay-off amount
- Cease future late or non-payment marks on your credit report
Debt Relief Laws in Pennsylvania
Debt relief laws are very common across the country. It’s important to note that all residents of every state are protected by the Fair Credit Act. This is a law that requires debt collectors do not call you outside specific time frames, and that they cease calling you upon written request they not call you at work or at school. You also have a statute of limitations in Pennsylvania. This means no creditor is permitted to take legal action against anyone with a debt more than four years following the first day of nonpayment of a debt.
Let’s say you have a debt you incurred in 2013. You stopped paying a credit card bill March 1, 2013. Once March 2, 2017 arrives, the creditor and debt collector assigned to your case can continue to call you and request payment on this account, but they can no longer threaten to sue you or take legal action because the limitation has expired. The negative mark will remain on your credit report for 7 years, but it will fall off after that and allow your credit score to rise substantially.
Paying your debts is a good idea at all times, but it’s not practical for all people who live in Pennsylvania. If you struggle to pay your bills and cannot obtain a consolidation loan through traditional methods, debt relief consolidation might be the answer. Your credit score is affected, and it’s not always the best solution if your debts already have a low interest rate. If you are struggle, it’s a solution to your problems. Keep in mind creditors are not legally bound to accept the negotiation terms or offers submitted on your behalf, so you might end up still paying some debts even when you begin the debt relief consolidation process.