Debt Consolidation: Lincoln Residents Have Options Available
Finding an ideal balance of safety, affordability and economic stability in the U.S. can be a rarity, but Nebraska’s western capital city of 284,736 fits the mold.
A heavy concentration of education, government and healthcare work in addition to large footprints in service and manufacturing make Lincoln a comparatively good place to earn a living. Lincoln’s median household income of 55,792 is slightly lower than the $56,927 state median. However, it scores an 85.2 on the cost of living index, compared to the 100 U.S. average. Median gross rent is also manageable at $733.
All of this makes it no surprise that Forbes ranked Lincoln No.4 on their 2013 list of ‘Best Places for Business and Career.’
But while Lincoln’s wages are relatively high, and living is more affordable than most U.S. cities, it doesn’t change the impact that high-interest debt can have on a financial situation. If you’re searching for debt assistance in Star City, know that there’s more than one way to pave your path to financial freedom.
Explore Lincoln Debt Consolidation and Relief Options
Lincolnites beside themselves trying to solve their debt dilemma should take comfort in knowing that effective, safe strategies exist, especially if your credit score is still in decent standing.
Interest rates on personal loans range from four to 36%, but they’re worth exploring if they carry a lower interest rate than what you’re paying on your overall debt. They also end the balancing act of paying multiple monthly balances. Explore lenders you’re not already in business with to get the best possible terms on your offers.
Another strategy for consolidating Lincoln debt is to get a balance transfer card. With low or zero-interest rates ranging from six-to-18 months, you can alleviate the stress of multiple balances, make more headway on your principal and potentially save money in the long term.
The caveat is that balance transfers carry a three-to-five percent fee, so ensure the interest-friendly introductory period more than makes up for it.
Use Your Home’s Equity
Lincoln’s median home value as of 2016 was $160,600, higher than Nebraska’s $148,100 median. If you have a decent amount of equity in your home, a cash-out refinance plan can liquidate enough cash to eliminate your high-interest credit balances. As a result, you’ll have a larger mortgage, but with new terms; interest rates (fixed or adjustable), repayment schedule and loan terms (up to 30 years). This route may extend the duration of debt, but it saves you from battling high-interest rates and operating on a thinner budget.
When Lincoln debt consolidation strategies aren’t effective — either because credit is damaged, or an overall debt balance is too high to make headway on — debt resolution becomes a viable alternative. Debtors can attempt debt resolution by declaring chapter 7 or chapter 13 bankruptcy — or by undergoing debt settlement with providers like Freedom Debt Relief.
All of these options have the potential to reduce or completely eliminate the amount you owe. But they’re not without their caveats. For example, chapter 7 bankruptcy can absolve your debt, and in as little as three months, but it’ll liquidate your personal assets to help pay back the debt. Chapter 13 bankruptcy protects your personal assets but mandates that court-ordered payments be made for three-to-five years. Of the two, chapter 7 will stay on a credit report longer (10 years versus 7). Either route will incur attorney costs, court fees, and mandatory financial management courses.
Debt settlement involves a company working with a debtor’s creditors to lower the balance of a debt. Though settling debt won’t help credit scores and the process can take anywhere from two-to-four years, debtors find an emotional release in allowing a third-party to take control of the situation. If successful with debt settlement, a percentage fee is charged based on the amount resolved, but like chapter 13, you get to keep your assets, and you don’t have to go through the court process.
Parting with Debt in Lincoln
With Lincoln being Nebraska’s capital, the state employs over 9,000 Lincolnites. The Lincoln Public School system accounts for another 8,000 jobs. The University of Nebraska employs over 4,400 employees directly, then countless more as businesses around town thrive from Cornhusker pride, especially on fall and winter Saturdays ahead of a contest at Memorial Stadium. Additionally, local and federal government as well as prominent healthcare organizations like Bryan Health support thousands of jobs in their own right
As clearly as these stats position Lincoln as a worthwhile place to build and enjoy a life, they don’t account for personal debt. The fact of the matter is that millions of hard-working Americans are burdened by debt and lacking an action plan is the common denominator.