Debt Consolidation: Fort Wayne Residents Have Options Available
While Fort Wayne seems to do better on the economic front when compared with other similar-sized cities, the median income still lags state and national levels. However, the average household income in the Indiana city did increase slightly to $45,236 in 2017 compared to the US median of $57,617.
The numbers confirm that local salaries have not kept up with state and national incomes for years. Contributing to this situation, Fort Wayne lost around 1500 high paying jobs at local companies in recent years, which also contributed to an increase in Fort Wayne’s poverty rate in 2017.
The city suffered significantly during the last recession, losing nearly a quarter of its manufacturing jobs between 2000 and 2014. As of 2017, Allen County’s labor force was 180,637 with an unemployment rate of 2.5%.
Companies based in Fort Wayne include:
- Brotherhood Mutual
- Franklin Electric
- Frontier Communications
- Indiana Michigan Power
- MedPro Group
- North American Van Lines
- Steel Dynamics
Nowadays, it doesn’t seem to matter if you’re earning a lot or a little—most of us are carrying some type of debt burden. If it’s minor, it’s not so bad and can be dealt with quickly by employing extra discipline, cutting out unnecessary purchases, and paying more toward your credit cards for several months. However, if it’s a more significant amount of debt, it may need a more robust solution.
The good news is that there solutions out there. Finding the right one for your situation depends on several factors: how much you owe, you much you earn, and how quickly you’d like to be debt free. Freedom Debt Relief has been helping thousands of consumers get rid of debt since 2002. Call 800-910-0065 today and speak with one of our Certified Debt Consultants. They can help you drill down to the most sensible solution for your financial situation. One popular method of debt relief is debt consolidation.
What Is Debt Consolidation?
This type of loan will consolidate or combine your multiple payments and accounts into one account, with one lender, meaning you’ll have one monthly payment and a lower interest rate. Since your consolidation loan will come with a specific end date and a lower rate, you’ll have a predictable monthly amount to set aside. This can help you budget, as opposed to trying to keep track of multiple payment dates and amounts for multiple cards.
Debt consolidation loans can come from various sources. You could take out a personal loan from a traditional bank, credit union or other lender, use the cash from a home refinance, or look into debt consolidation companies. To see if a debt consolidation loan is the best choice for your amount of debt and overall financial situation, you’ll need a clean credit history, good credit score, reliable income, and a good debt-to-income (DTI) ratio.
It’s important to do your homework before committing to any lender. Compare interest rates and terms from various sources to ensure you’re getting the best deal. Most banks offer solutions on how to get out of debt, as do peer-to-peer lending companies.
Traditional brick and mortar banks may have more stringent qualification criteria for how to pay off debt and charge more. Furthermore, some will charge a penalty if you pay off the loan early and may also charge what’s known as an “origination” fee. Make sure that the lending company you use does not charge any such fees.
Other Debt-Relief Solutions
While a debt consolidation loan is a smart solution for many people, it’s not the best one for everyone. If you have too much debt or your DTI ratio is too high, most lenders will consider you too great a risk and will be unwilling to lend to you.
Likewise, if your credit score is too low, the high rate offered by the loan companies will mean that you’d be better off just paying the minimum payments on your cards. Moreover, if your debt burden is the result of a specific situation like a job loss, the loan won’t address this (unless you get another job) and you run the risk of getting stuck in a new cycle of debt.
If you have a low credit score, debt consolidation loans are usually not a good idea. If you’re struggling with debt and have bad credit as well, a loan of any kind (unless it’s interest free) is not going to solve your problem. There’s no point trying to borrow more money on top of what you owe when the interest rate will be so high. There are other solutions available that may make more sense, like debt settlement or debt management programs.
Regardless of which approach you choose to clear your debt, you’re headed in the right direction already by considering the options. Freedom Debt Relief Certified Debt Consultants can answer any questions you may have about debt consolidation and other debt-clearing solutions. Feel free to call any time at 800-910-0065 and let us help get you on the road toward a healthy financial future.
End Your Debt
Find out how our program could help.
- One low monthly program deposit
- Settlements for less than owed
- Debt could be resolved in 24-48 months