If you love life on the water, you may call Norfolk home; enjoying some of the 144 miles of shoreline along local bodies of water—including 7 miles along the idyllic Chesapeake Bay. This one of “The Seven Cities” is even home to the world’s largest naval base.
Norfolk is considered a city on the upswing. USA Today named Norfolk as the 9th top city attracting millennials—meaning more people from this age group are moving in than out. While a boom of any size is always a good sign, as it brings vibrancy to an area, it also means residents may be grappling with rising housing costs.
As beautiful and life-giving as close proximity to water can be, this element can also bring economic challenges. For example, folks from Norfolk recently experienced significant flooding as a result of Hurricane Florence. It’s a city at risk of experiencing adverse weather ranging from high winds to heavy rain and flooding, something that can end up costing its residents money in the long term.
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Whether you’re still recovering from recent flooding or just struggling to keep up with the cost of living, it’s important to know your options. Carrying debt doesn’t have to be “your new normal.” There are debt solutions available to Norfolk residents.
Know Your Debt Relief Options
Before you can formulate a plan, you need to know the options out there. The debt solution that works best for you depends on your setup. How much debt do you have? What kind? Is your income relatively steady? Can you commit to finishing the course of action you start?
Here is a brief overview of just some of the options available in Norfolk meant to help residents address their debt.
Cash-Out Refinancing: An Option for Homeowners
If you own a home, your mortgage could help you eliminate high-interest debt. How? If you have enough equity, you may be able to refinance your home for a higher amount, then take out the difference in cash at closing. You can use this cash to pay down your most pressing debts, then focus on repaying your (increased) mortgage over time.
Your mortgage will take longer to pay off, but this strategy lets you avoid paying high interest rates on credit card balances, etc. The primary risk is, as always, that you may lose your home if you can’t pay your mortgage in full.
Balance Transfers: An Option for Credit Card Users
Another solution geared toward lowering or eliminating interest rates is the balance transfer. Here’s how it works: If you qualify, you can transfer your balance from a high-interest credit card to one with 0 or low APR. It’s easier to pay off no or low interest than it is to pay off 20 percent or higher.
But credit card holders, be warned: Some cards offer an appealing introductory rate that bounces back up after a set amount of time.
Debt Consolidation for Norfolk Residents
Facing $10,000 or more in debt? Debt consolidation for Norfolk dwellers could help; provided you can qualify for a consolidation or personal loan with a lower interest rate than your current debts. If you can, you can use that money to pay down various debts all at once, which simplifies your repayment plan.
The interest rate you qualify for depends on your credit score, so this strategy may not work in everyone’s favor. It also doesn’t put a dent in the amount you owe; it just streamlines repayment and reduces interest rates.
Bankruptcy has a reputation as being a last resort, and for good reason. Only Norfolk residents who truly believe they cannot pay off their debt any other way should file. Chapter 7 bankruptcy gives consumers a “clean slate,” but at the cost of their assets. Chapter 13 bankruptcy still requires partial repayment but may reduce or forgive certain debts—and require repayment through the court. Unsurprisingly, both options will severely tarnish your credit score.
Call Today to Discuss Even More Debt Solutions
There are even more options to consider before you decide which route to take, including debt settlement—a strategy that involves negotiating with creditors to hopefully knock down the balance you owe. Talk through your options with a Freedom Debt Relief Certified Debt Consultant today at 800-910-0065 .