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Debt Consolidation Loans in Newark, NJ
Newark City in New Jersey is one of the country’s major transportation hubs. Home to a little less than 300,000 people, it is also the state’s biggest city. It plays hosts to a thriving business and industry center, supported by the aforementioned robust transportation centers. The progressive business sector, however, have also given rise to notorious traffic congestion. And also, unfortunately, Newark owns the dubious title of “most unfriendly city in the world”.
Wealth and economy
Despite the seemingly diverse and vibrant business community, Newark has a rather bad mix of high cost of living and low income. According to the U.S. Census Bureau, a typical homeowner here pays a surprisingly high $2,158 per month on mortgage. Rental fees are much more palatable at $973, which is right around the national average. The most troubling statistic, however, is the per capita income. Newark residents have a measly per capita income of $16,791, which explains why an astounding 30% of the population is experiencing poverty. This much people financially struggling are not usually also burdened by low income rates, but such is the dire situation in Newark.
How debt consolidation can help
Many of the people in other cities who are in poverty rely on loans and debts to get by, and it is not a stretch to assume the same in Newark. While it isn’t a bad thing in itself to have debts, it becomes a major headache if you start missing payments. Here is where debt consolidation loan companies can help. What it does is it allows you to combine all your existing and current debts into one loan account. You can do this by applying for a new loan with longer payment terms and lower interest rates, provided you have a good credit rating. You can then use the proceeds from the new loan to pay off the other debts. This setup allows you to focus on just one monthly payment, which is much easier to track. It also gives you breathing room to start your financial recovery because there is less pressure to keep up with multiple payment dues.
Legalities of debt consolidation
Just like in other cities, debt consolidation is allowed and legal in Newark. But it is important to understand that it does not absolve the debtor of his obligation to pay like other debt relief options, and creditors can still file lawsuits to debtors that refuse to pay. That being said, debtors are also protected by the Fair Debt Collections Practices Act against abusive collection tactics. Talk to your lawyer or a financial expert to know more about how to effectively implement debt consolidation, and use it to resolve your cash flow problems.