Debt Consolidation: Dallas Residents Have Options Available
According to an article regarding the financial aspects of living in Dallas, Texas, the city has the biggest deficit between the money needed to live well and what people actually make. Apparently, residents of Dallas need to make $57,984 a year to cover necessities, have money for discretionary spending, and be able to save too.
But the median household income is only $43,781 which means there’s a gap of $14,203. Still, the city has a couple of economic factors in its favor: the cost of living is under the national average at 96.1% and residents of Dallas and other Texas cities don’t have to pay personal income tax.
The Dallas economy is primarily based on healthcare and medical research, banking, commerce, telecommunications, technology, energy, and transportation and logistics. In 2017, 22 Fortune 500 companies were headquartered in Dallas, which is the third-largest concentration in the nation of this rank of companies. And 300 other companies make their headquarters there as well, providing employment to many Dallas residents.
On the housing front: Dallas home prices have gone up 12.7% over the past year and are predicted to keep rising. In 2018, the median price of homes listed in Dallas is $385,000 while the median price of homes that sold is $304,000. If you’re a renter, the median rent in Dallas is $1,600.
Even with a flourishing economy and no personal income tax, many residents still struggle to get ahead and are carrying consumer debt in growing amounts. If you’re in debt and ready to start dealing with it, you’ll be pleased to hear there are solutions available.
There are several debt-clearing solutions out there for consumers dealing with large debt burdens. The variety of solutions means there’s probably at least one that will be the right fit for your circumstances. If you’re a Dallas resident with significant debt, a debt consolidation loan may be the answer you’re looking for.
If you’ve done some research and it looks like a debt consolidation loan is the right fit for you, the next step is to complete the following:
1. Get Pre-Approved.
You’ll need good credit, a good or at least fair credit score, and a debt-to-income (DTI) ratio of 50% or less. If you have a good or excellent credit score, you should qualify for the lowest interest rate.
Your DTI ratio is the difference between the amount you owe and your income. If the debt is too high compared to the money you’re bringing in, your ratio will be too high and may prevent you from obtaining a loan of this kind.
2. Select Loan Terms.
The terms include the amount you’ll borrow, the interest rate, and the length of time you’ll have to pay the loan back. Debt consolidation loans typically take from two-to-five years to complete.
3. Finalize Your Loan.
You’ll need to substantiate your income with paystubs and show proof of your identity with a driver’s license or passport.
The lender will then pull your credit report, creating a hard inquiry. A hard inquiry will cause your credit score to dip temporarily, but when you begin paying off your credit cards with the loan, your score should start to improve again.
For most consolidation loans you’ll need to put up collateral in the form of a high-value asset like your home or car. This type of secure loan has benefits and drawbacks: you’ll be able to get a lower interest rate, which can reduce your costs over time, but if you do get behind on payments, you risk forfeiting your collateral, which means your home could be foreclosed on or your car repossessed.
A less risky option is to go for an unsecured loan. These are not so easy to obtain and usually come with much higher interest rates. This is because the loan company has no guarantee that you’ll pay back the entire loan. This strategy, while being less complicated in certain ways, could end up creating even more debt for you in the long run.
Whether it’s debt consolidation or another debt-relief option, you have choices. Don’t wait any longer to find out how to address your debt. Get started right now by calling Freedom Debt Relief at 800-910-0065. Our Certified Debt Consultants can outline various strategies and get you started on the road to financial freedom.
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