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Debt Consolidation Loans in Connecticut: Best Credit Card Relief Programs & Settlement Help Companies
Life in beautiful Connecticut can seem blissful on the surface, but many of the state’s residents have a private struggle with finances. For many residents, high account balances and monthly payments for loans and credit cards make personal finances burdensome. Some are barely managing to make all payments in full each month, and others have fallen behind in their payments. If your stress level is mounting because of your financial situation, rest assured that debt relief is available. One of the most common forms of debt relief that consumers in Connecticut use is debt consolidation. After learning more about what consolidation is and how it can help you, you may be ready to apply for a debt consolidation loan today.
Each resident in Connecticut has a different financial situation they are dealing with, but most share the common stresses related to high expenses and modest income. The U.S. Census Bureau has published statistics related to these two figures that can be enlightening to review. For example, the average homeowner in Connecticut has a monthly mortgage payment of $2,067. Renters pay $1,075 per month in rent on average. The per capita income in Connecticut, on the other hand, is less than $39,000 per year. With almost 11 percent of Connecticut’s residents living in poverty and many others living close to the poverty line, the financial situation is dire for many in the area. Keep in mind that many who live comfortably above the poverty line still struggle with high debt balances. Finding a way to manage debt is critical, and debt consolidation may be the answer that you are looking for.
If you are interested in consolidating your debts, you should initially create an itemized list of each credit card and loan that you have. Include your minimum monthly payment, outstanding balance and interest rate for each account. The primary goal when applying for a debt consolidation loan is to find a loan that will incorporate all of your existing debt into a single account and that has a lower interest rate than your existing debt. Therefore, referring back to your list of debts when shopping for a loan is beneficial. The best consolidation loan is one that has a low interest rate and a fixed term. Some fixed terms, such as with an unsecured installment loan from a bank, may be as short as five or seven years. Others, such as with a home equity loan or second lien on a home, may be as long as 20 or 30 years. The shorter your term length, the faster your debt balance will be eliminated.
Who Qualifies for Debt Consolidation
The two primary financial options available for debt consolidation are home mortgage or equity loans and installment loans. Installment loans may be unsecured, or they may be secured by an asset, such as a car or boat that you currently own free and clear. However, before you can qualify for a loan, you must ensure that your credit rating is sufficient for loan approval. If your credit rating has been hit by late payments, collections accounts and more because of your debt situation, you may need to seek an alternative form of debt relief. Some alternatives are debt settlement and bankruptcy. If you have a good credit score, research all of the financing options to find the one that will help you to more effectively manage your debts, reduce your monthly debt payment and pay debt off faster.
A Closer Look at Connecticut’s Debt Relief Laws
If you are interested in applying for a debt consolidation loan, you may be curious about what the state’s debt relief laws are. As you might imagine, there are consumer protection laws that are designed to protect debtors from harassing calls and letters from creditors. There are also laws related to bankruptcy, foreclosure and repossession. The process of applying for a consolidation loan and refinancing your debt into a single account falls under consumer lending laws. Provided the loan you apply for complies with consumer lending laws in the state, you can take advantage of a consolidation loan.
Financial stress can cause sleepless nights and anxious days as you try and decide which debt to pay off first. You may be hounded by creditors at home and at work. You may not be able to save money to pay for retirement or even for a vacation. There are many negative effects associated with having high debt balances. While this may be your current experience with debt, rest assured that there is a viable solution available. Debt relief is available through debt consolidation, negotiations and bankruptcy. Because debt consolidation will not damage your credit rating like the other two options, you should consider consolidation before exploring other options.