Economically speaking, Michigan is probably best known as the center of the American automotive industry. But it also turns out a great number of other products and services that contribute to its prosperity. In addition to car making, the Great Lakes State produces items as varied as furniture, copper and iron ore, information technology, aerospace equipment, and food products.
Two of the top US pizza chains, Dominos and Little Caesars, were founded in Michigan and are headquartered there. Perhaps most surprising is the number of Christmas trees grown here: Michigan is the third-leading grower in the country.
Michigan’s auto industry was hit hard during the economic downturn of 2008, in part, due to the high price of oil. However, in 2010, the “Big Three” automakers, General Motors, Ford, and Chrysler began reporting major profits again, signaling the beginning of an economic comeback.
Debt Consolidation Loan Options
The good news is that Michigan incomes are slowly rising as part of the state’s overall recovery from the Great Recession. In 2016, Michigan’s median household income of $52,492 was up 2.8 percent from the previous year. The bad news is that when these figures are adjusted for inflation, the median household income is still below levels seen pre-recession.
If your income seems stuck at 2007 levels and you’re not making enough to pay bills or make a dent in your growing debt, you’ll be pleased to know there are debt relief strategies out there. One solid solution is to get a debt consolidation loan. There are other options too, but this is one of the most common and works well for a great many consumers in Michigan. For this purpose, most loans are secured to protect the lender’s financial outlay, but it is possible to obtain an unsecured loan.
If you get a secured loan: you’ll need to put up a high-value asset like your home or car. While this type of loan allows you to get more favorable terms and a lower interest rate from the lender, you run the risk of losing your asset if you fail to keep up with the payments.
If you get an unsecured loan: you won’t be asked to put up collateral, but you’ll have to pay higher interest rates since the lender is taking more of a risk. But even with higher rates, this option may make more sense for you.
Choosing a Lender
If a debt consolidation loan looks like the right choice for you, the next step is to do your research. You’re looking for a reputable lender offering favorable interest rates and terms. It’s a good idea to compare several loan companies, which you can do quickly online. Also, make sure to read consumer reviews so you can find a lender you can trust.
When looking for a lender, consider the following criteria:
- Payment Terms: If you get shorter terms, your payment schedule will be more aggressive. This means you’ll be free of debt quicker. Longer terms will reduce your monthly payments but prolong the repayment schedule.
- Lender’s Fees: compare the APR (Annual Percentage Rate) of the loan and not just the interest rate. Make sure the origination fee (charged by most lenders) is included in the APR.
Avoid debt consolidation companies that penalize you for paying off the loan sooner than the agreed-upon dates.
Customer Service: Check the reviews to see which lenders come out on top for this. You’re looking for transparency, and representatives available by phone or chat if you have questions.
Freedom Debt Relief offers free debt evaluations to help you find the right solution. Call 800-910-0065 today to see whether debt consolidation or another method is the right choice for your unique financial situation.
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
Debt in Michigan
Unemployment rates in the Wolverine State are still high after the last recession. This can mean that residents have to resort to using credit cards to pay for basic living expenses. However, many Michiganders manage to keep their debt levels lower ($5,508 per household) than the US average of $5,700 by resorting to bankruptcy instead.
Freedom Debt Relief offers a number of solutions to your debt problem—all effective in resolving debt and less drastic than filing for bankruptcy. If debt consolidation doesn’t work for your situation, debt settlement, debt counseling or debt management might. Learn about all the options by speaking with a Certified Debt Consultant at 800-910-0065 . Start your journey toward financial freedom today.