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Vermont is a truly gorgeous state to live in, and you may enjoy the benefits of beautiful scenery and friendly hospitality. However, if you are like many others who live in Vermont, you may also have some hard times. Financial woes are among the most common struggles that residents live with. While some Vermont residents enjoy a comfortable lifestyle with financial security, others are heavily burdened by debts. If you are looking for a way to better manage your debts, reduce your debt balances or simply make ends meet, you may be reviewing the benefits of debt consolidation is a possible form of financial relief.

A Closer Look at the Financial Situation in Vermont

Vermont has a solid economy with many great job options for residents to consider. However, it also has a high cost of living, and many people are struggling to pay their credit card payments and other debts because of high housing payments. The U.S. Census Bureau reports that the average homeowner in Vermont pays $1,535 as a monthly mortgage payment, and renters pay an average of $895 per month in rent. The state’s per capita income is less than $30,000, and more than ten percent of the state’s residents live below the poverty line. However, financial challenges and high debt balances can occur at any income bracket.

How Does Debt Consolidation Work?

Before you can determine if debt consolidation is the right form of debt relief for your needs, it is important to understand what it is and what the benefits are. Debt consolidation is a financial strategy that requires you to transfer your current debt to an account with more attractive terms. This may be an account with a lower interest rate. Perhaps it involves transferring a balance on a revolving credit card to a fixed installment loan. To get the most effective results from debt management, you will ideally consolidate all of your high interest debt into a more financially attractive loan. Through debt consolidation, you may be able to enjoy easier debt management through a reduction in debt payments each month, a lower minimum monthly debt payment and faster debt reduction. In fact, if you establish the debt on an installment loan with a fixed term, you could be debt-free at the end of that term. This gives you a great debt elimination plan to follow.

Is This the Right Solution for You?

Debt consolidation is an effective, beneficial debt management strategy that many people in Vermont can benefit from, but it is not well-suited for all debt situations. Consider, for example, that debt consolidation typically requires you to open a new account and to qualify for a loan with a lower interest rate. To accomplish this goal, a loan application generally needs to have decent or good credit scores. However, many who have a burdensome debt situation have a lower credit rating. One alternative to consider is to ask one of your creditors to increase your account limit so that you can consolidate at least some of your debt. In addition, if you qualify for a secured loan, such as a home equity loan, you may be able to qualify for a new loan even with a lower credit rating. If you discover that a debt consolidation loan is not a suitable option for your financial situation, take heart in knowing that other debt relief options are available. For example, debt settlement is an effective way to reduce the amount of outstanding debt you carry and to lower monthly payments. You may also find relief by filing for bankruptcy. Because both of these options can harm your credit rating, debt consolidation should be explored as a first step.

What Are Laws in Vermont Regarding Debt Relief?

The benefits of debt consolidation as a form of financial relief may sound too good to be true, and you may be wondering if this is a legal option. Consolidation simply means that you are refinancing your debt, and this is legal in Vermont. Vermont does have rules and regulations in place for other forms of debt relief, such as bankruptcy and settlement. If you choose to pursue these alternatives, seek legal advice before proceeding.

When you are stressed out by high debt balances, you may find it difficult to sleep at night. You may not be able to save money to meet financial goals you have, and your lifestyle may be less desirable than you would like. Finding a way to manage and reduce your debt is critical, and you may find the debt relief that you are looking for through debt consolidation. Talk to a lender today about the loan options available to you for debt consolidation. This first step can set you on a path toward improved financial security.