Are You a High Point Resident Who Needs Help with Debt?August 3, 2022
The diverse High Point community has a long history of manufacturing, education, and hard work. The renown of the local furniture industry brings many top American interior designers to the area every year. Plus, with three universities in the surrounding High Point area, education is deeply valued. This combination makes High Point a special place to live.
Yet in 2010 the local unemployment rate peaked at 11.1%, and years later many High Point families are still trying to recover. If you’re struggling with paying debt, know that you can get help to find the right solution. Options range from debt consolidation loans to enrollment in debt settlement programs, so it’s important to figure out which is best for your specific situation.
Debt Consolidation Through a Personal Loan
Debt consolidation simplifies your finances with a single payment each month instead of paying several bills to several creditors, which can make it easier to make headway on the entire amount of your debt. This helps you gain traction on debt because monthly payments will be applied to both the interest and principal.
Typically, the interest on this loan may be less than the interest due on your current debts, yet it’s important to understand that your interest rate will be influenced by your credit score. Average interest rates on personal loans are 14%–18%, yet these rates can vary widely from as low as just over 4% annually for people with exceptional credit and up to 25% or higher for people with poor credit.
Most consolidation loans require collateral, such as a car or your house. Although this type of secured loan can give you a lower interest rate overall, helping you pay less over time, it’s important understand that if you fall behind or can’t make the payments, you could lose your daily transportation or the roof over your head. Sometimes you can find a loan that doesn’t require a collateral guarantee; however, these loans usually carry higher interest rates, which may lead you to paying a greater amount of debt in the long run.
Find out if getting a debt consolidation is a good idea for you. If this seems like a good fit, then check with local High Point banks as well as online lenders so you can have a solid comparison of interest rates.
After you receive the loan proceeds, be sure to use the funds the way you intended. If you are using a personal loan for debt consolidation, some companies will assist you with this goal by sending the funds directly to creditors.
Debt Settlement Program Through a Reputable Company
If you are a High Point resident and have over $7,500 in debt, then the better answer may be to look into debt settlement. Also called debt negotiation or debt resolution, debt settlement is where you work with a company to reduce and resolve debt. A debt settlement program can be of help if you’re struggling and want to resolve your debt more quickly. It is a type of debt consolidation, yet it is not a loan and debt settlement differs from all other debt solutions in that it can lower the principal amount owed. This lower amount of debt owed to creditors should make it faster and easier to pay off all of your debt.
Here’s how it works: each month, you make a monthly deposit into an FDIC-insured dedicated program account that you fully control. While you build up the funds in this account, a debt settlement team creates a customized action plan. The team will take into account the best time to start negotiations with a creditor, what type of settlement to negotiate, and how to leverage a settlement with one creditor to get a better settlement with a different creditor. Once a final settlement has been negotiated with one of your creditors, the team brings you the details and you authorize each settlement, ensuring you’re in the driver’s seat.
A debt settlement program can negatively impact your credit score, yet it impacts it less than filing for bankruptcy. Plus, once you’ve completed a debt settlement program, all the debts are paid and you’ll be in a solid position to improve your credit score. Upon completing the program, once enrolled debts are settled, you will no longer owe anything or anyone. Your debt is behind you!
Request a free debt evaluation to find out how we could help you:
- Resolve your debt faster
- Significantly reduce what you owe
- Make one low monthly program payment
Additional Debt Solutions
There are other options besides debt consolidation and debt settlement. With a median household income of $43,332, High Point residents may want to research alternatives, such as a minimum payment plan or filing for bankruptcy. However, these debt solutions may be less favorable to your situation. By sticking with minimum payments, it can lead to you paying more money to the creditor over time due to compounding interest. As for bankruptcy, it may be right for some situations, but it is typically viewed as a last resort—especially with the negative effect on your credit score. If you do consider filing for bankruptcy, then it’s best to review the North Carolina statute of limitations on collections and other local laws before undertaking such a legal endeavor.
Talk with a Debt Expert
Millions of Americans—as well as many Guilford, Randolph, Davidson, and Forsyth county residents—are burdened by debt: you are not alone. Finding a way to pay down debt can be stressful and overwhelming, yet right now you are taking an important step to learn about your options. If you don’t qualify for a low interest rate on a personal loan, then it might not make sense to get a debt consolidation loan. And if the bankruptcy seems too risky or paying the minimum payments is still leaving you feeling overwhelmed, then you may want to, consider enrolling in a debt settlement program like the one offered by Freedom Debt Relief. Such programs can help with debt negotiation and simplify your monthly finances. Enrollment can reduce financial stress as you know you’ll be on a path toward the solution. To get expert advice about your situation, speak with a Freedom Debt Relief debt specialist at 800-910-0065 .