Like many cities, Knoxville, Tennessee has endured an up-and-down economic past. The original capital of Tennessee was first settled in 1786, but due to geographic isolation, didn’t take off until the advent of the railroad in the mid 1800s. Among the industries that helped shape Knoxville into what it is today, wholesaling and manufacturing played vital roles.
Following the collapse of manufacturing in the 1920s, Knoxville’s economy declined. Things would stay similar for decades, until the 1982 World’s Fair rolled into town, of which Knoxville is still one of the smallest cities to play host.
Today, the ‘Gateway to the Great Smoky Mountains’ is the third largest city in Tennessee with a population of 186,239. And while Tennessee is one of cheaper states to call home in the United States, a median gross rent of $763 and annual household income of $35,816 mean monthly budgets can quickly run thin—especially when dealing with debt.
If you’re searching for debt assistance in the Marble City, know that there’s more than one way to pave your path to financial freedom.
Which Debt Relief Strategy Best Applies to Your Situation?
If you’re looking for debt assistance in Knoxville, the first thing to know is that there’s no one-size-fits-all solution. Because consumers can get into various types and severities of debt, some options will work better with a debtor’s situation than others. Here’s an overview of the most common ways to deal with debt.
If you have debt but it’s not affecting your lifestyle too much, then you may only need a few simple tweaks to correct your course. Debt management programs do nothing to the amount you owe, however, they simplify the repayment process and ensure you’re not paying additional money in interest.
Enrolling in a debt management program will often lower your interest rates and your monthly payments. But keep in mind that DMPs charge a monthly fee. In exchange for this fee, you’ll make one payment per month to your management company, who will then distribute that total to your various creditors to pay back as much principal as possible. Most debt management programs also provide financial education courses to improve your financial behavior going forward. Enrolling in a DMP negatively impacts credit scores and will affect your ability to secure additional credit.
Debt Consolidation for Knoxville Residents
If a substantial amount of your monthly repayments are going to interest, it’s time to look for a more efficient repayment solution. Debt consolidation for Knoxville residents involves transferring various balances to a new line of credit. The goal is to not only make monthly payments more straightforward, but also to save money on interest rates. Imagine how much you’d save on interest if you were able to pay off your balances that have 20 percent (and higher) interest rates with one loan at a 10-15 percent interest rate?
You’ll have an easier time consolidating your debts if your credit score is still in decent standing. It’s also worth noting that debt consolidation, whether in Knoxville or elsewhere, will hurt your credit score because creditors view old debt more favorably than new debt.
We all make mistakes. Sometimes, we commit a few more blunders on top of our initial mistake. If you’ve done this financially, you may be a candidate for debt settlement. When you work with a debt settlement partner, you’ll stop making payments on your debt while contributing monthly deposits into an account. As your payments are lapsing, your provider negotiates with creditors to lower the balance you owe. Debt settlement works because when creditors aren’t sure whether they’ll recoup the debt at all, they’re more willing to accept some money versus nothing.
Debt settlement does come with some caveats, though. Like the other options above, debt settlement will hurt your credit score. It also takes two-to-four years to resolve. Should your debt be negotiated for a lower amount and you agree to pay it, you’ll be charged a percentage-based fee by the settlement company. On top of this, your forgiven debt will be taxed by the IRS as income. But considering that debt settlement steers clear of bankruptcy, and has a long track record of success, the consequences may be worth it to leave debt behind once and for all.
At Freedom Debt Relief, we’re proud to say we’ve helped countless debtors reduce their debts and get back on their feet.
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
Getting Debt Relief in Knoxville
If you call Knoxville home, then you’re well aware of the city’s passionate ties. After all, Knoxville is Vol Country. It’s also the ‘Birthplace of Mountain Dew’ — a soft drink originally conceived as a mixer with past slogans as vibrant and captivating as “It’ll tickle yore innards.”
So perhaps a hearty swig of Mountain Dew coupled with a Saturday evening spent under the lights of Neyland Stadium rooting for the Vols along with 100,000+ other people is the ultimate Knoxville rush.
Wouldn’t that rush feel infinitely better if money weren’t an issue, though?
Whether you work at theatre chain Regal Entertainment Group’s headquarters or the HQs of the nation’s largest truck stop chain in Pilot Flying J, gainful employment is only one slice of the pie to achieving economic prosperity. The fact is that millions of hard-working Americans are burdened by debt.
If you’re one of these people, the solution to your troubles could be a phone call away. Ready to start your road to financial health? Call 800-910-0065 to speak with a debt specialist today!