Debt Consolidation in Hawaii

While Hawaii residents earn a median income of $31,905 annually, their average debt is $67,010 per resident. This means that their debt-to-income ratio is 2.1, the second highest in the nation. The reason for their high debt load is their high cost of living. Their average home mortgage is $52,380, and their credit card debt is $3,650, higher than the national average by 65% and 25%, respectively. It’s no wonder that Hawaii residents are struggling with debt.

If you are trying to get out of debt, Freedom Debt Relief can help you find a solution to your financial problems. Get your free debt evaluation to find the solution that best fits your circumstances, whether it’s debt settlement, debt counseling or debt consolidation, by calling 800-230-1553. There is a way out of debt and achieving financial freedom.

Debt Solutions

There is a variety of debt solutions available to those burdened by massive debt. There’s no one-size-fits-all solution, but there are options that might fit your debt situation better than others. Here’s an overview of what may be available to you in Hawaii.

Debt Consolidation in Hawaii

Debt consolidation is consolidating all your debts into 1 monthly payment, either through a consolidation loan, a personal loan, or transferring to a single credit card. If you have more than $10,000 in debt and are struggling to keep up with multiple monthly payments, you might be good candidate for debt consolidation. Find out more information about your debt consolidation options.

Most consolidation loans require collateral — a high-value asset such as a home or a car — that you must leverage in order to receive the loan. A secured loan is a bit of a double-edged sword: on the one hand it can help you get a lower interest rate, which means you pay less over time. On the other hand, if you do fall behind or can’t make your payments, you’re in danger of losing your leveraged asset. That means your house could be foreclosed on or your car seized.

The other option is to get an unsecured loan. These may be harder to come by and usually carry much higher interest rates because the lending company doesn’t have any guarantee that you’ll repay the entire loan outside of a binding signature. An unsecured loan could help simplify your repayment process, but it could also lead to a greater amount of debt in the long run.

Debt Counseling in Hawaii

If you don’t have massive debt or want some tips on how to reorganize and reprioritize your budget, then debt counseling could be right for you. A debt counselor may help you build a budget that meets your needs and helps you pay down debt. Be aware that debt counselors also often lead you to other services, such as debt consolidation. Be sure to research carefully all your options before you enroll into their program to make sure that you are comfortable with the plan and any programs they may recommend. Hawaii residents should research debt counseling services in the area for a comprehensive list of services.

Debt Relief in Hawaii

If you have a lot of debt, debt relief could be your answer. With debt relief, also known as debt settlement and debt resolution, you work with a company to reduce and resolve debt. The company negotiates with your creditors on your behalf while you save into a program account you control. When the debt settlement company reaches an agreement with one of your creditors, you can pay it off with the funds you saved. The process repeats with all your enrolled creditors until your debt has been resolved.

Other options for managing debt include minimum payment plans and bankruptcy, though both options may be less favorable than those listed above. Find out more about debt management strategies in our Debt Management guide, which walks through 5 methods of dealing with debt in detail.

Sticking with minimum payments will most likely lead to you paying more over time thanks to compounding interest. As for bankruptcy, it may be right for some, but it is typically viewed as a last resort, especially since it may have a negative effect on your credit score and it can last on your record for up to 10 years.

 

Millions of Americans are burdened by massive debt; you are not alone, not in Honolulu or in Hawaii. A possible solution is just a phone call away. Speak with a debt specialist and find out how you can start your journey toward financial freedom.

Whether it’s resolution, counseling or debt consolidation, Hawaii residents have options. Don’t wait any longer. It’s time to take care of your debt and live a life of freedom. Get started right now; call today.