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Debt Consolidation Loans in Alabama: Best Credit Card Relief Programs & Settlement Help Companies
If you have excess amounts of debt in the state of Alabama, you may want to consider debt consolidation in order to obtain some relief. Debt consolidation can help you lump all of your debt and payments into one payment every month. In this article you will find socio-economical information about the state, wealth and poverty facts, how debt relief can help, if you're a good candidate, and specific debt relief laws in the state.
Socioeconomics In Alabama
Overall, Alabama residents have lower amounts of credit card debt than the average American. While the average American has over $5,350 in credit card debt, Alabama residents typically carry $4817. Alabama also has a high rate of residents owning their own homes, with a rental rate of only 26.8%.
Jobs are relatively plentiful in the state, with a total labor force of just under 2 million. The state is the country's largest producer of pipe and cast-iron commodities, providing a high rate of manufacturing jobs. While this varies by region, the typical borrower in Alabama is generally able to make their monthly payments.
Wealth and Poverty In Alabama Regions
As with many areas of the country, some regions of Alabama are much poorer than others. For example, in Boykin, which is located in Wilcox County, the average person only earns approximately $8,000 a year. This is the same as the state average income in 1980. However, in Mountain Brook and Vestavia, the average person earns over $100,000 per year. In fact, the average person in those two regions earns more than the average person in seven other regions combined.
Overall, per-capita income has only grown approximately 25 percent in Jefferson and Mobile counties since the turn of the century. Inflation has grown at a much faster rate, meaning that some regions are unable to keep up, causing them to fall deeper into debt.
How Debt Relief Can Help and Benefits Provided
With some residents of Alabama sinking further into debt, debt relief can help. Debt consolidation is a popular form of debt relief. A major benefit of consolidation is the ability to make only one payment per month. Oftentimes, the interest rates are lowered, allowing that payment to be lower than it would be if payments were made individually. This allows the person to get out of debt fast and save some money, allowing them to avoid debt in the future.
Another benefit of debt relief a person receives is the peace of mind that occurs when the constant burden of debt is lifted off of them. Debt collection phone calls and letters stop, and the threat of a lawsuit disappears. This provides a sense of confidence and the ability to take control of their finances again.
Who is a Prime Candidate for Debt Relief?
Prime candidates for debt relief and debt consolidation are people that carry multiple lines of credit and have high interest rates and can qualify for low interest consolidation loans. A sign that a person is needing to consider debt relief is the need to rely on credit cards for daily purposes such as grocery shopping or gas. A candidate for debt consolidation understands the need to get out of debt now so they can stay out of debt in the future.
It is important for those seeking student loan debt relief to note that if they have federal student loans, they can consolidate for free with the government. Overall, there is very little debt relief available for student loans outside of government programs for low-income borrowers. As a result, student loans are not considered to be a good candidate for private consolidation.
Debt Relief Laws in Alabama
Alabama does not offer any state-level debt relief programs. The state does, however, follow the federal laws protecting borrowers, including the Fair Debt Collection Practices Act. The FDCPA forbids debt collectors from using abusive or deceitful tactics to collect a debt.
The state of Alabama does have a small section in their laws stating that debt collectors must be licensed in order to work in the state. Overall, Alabama is a very debt-collector friendly state and makes it difficult for those finding themselves in debt to avoid paying it.
While the laws in Alabama do not make it easy to get out of debt, debt consolidation is a method of debt relief that can help. If reaching out to the lender or attempting to refinance has not worked, contact a debt relief company to see if debt consolidation will work for you.