Debt Consolidation: Omaha Residents Have Options Available
Omaha might not be talked about much in the national public eye, but the city of 446,956 in eastern Nebraska certainly packs a punch. The birthplace and longtime home of famous billionaire investor, Warren Buffet, has been called the best “bang-for-your-buck” cities in the U.S., enjoying a median household income of $52,672 and a diverse economy ranging from finance and logistics to insurance, architecture and engineering.
However, with today’s sky-high credit interest rates, no city’s economy can thwart consumer debt. The Gateway to the West’s median gross rent is $860, no small amount when interest rates eat up a substantial amount of monthly repayments. Stop the maddening cycle of doggy paddling in your debt by learning about these Omaha debt consolidation and relief strategies.
Get-Out-of-Debt Strategies to Consider
Omaha residents beside themselves trying to solve their debt dilemma should take solace in the fact that effective — and safe — strategies exist. Let’s look at some common debt-assistance options:
If you’ve just begun a dangerous descent in debt and haven’t badly damaged your credit score yet, a personal loan can breathe fresh life into your situation. Explore personal loan options from institutions whom you’re not currently indebted to — better rates may be available. Good credit can net you an unsecured personal loan with interest rates under five percent, but even average or fair credit might give you a more attractive interest rate than what your credit cards carry.
Another strategy for consolidating Omaha debt is a balance transfer. Through an introductory (zero- or low-interest) period usually ranging from six-to-18 months, a balance transfer can relieve stress caused from paying multiple monthly balances and allow debtors to attack their principal balance aggressively.. If the introductory zero-interest period sounds good to be true, know that balance transfers typically carry a three-to-five percent fee. Do the math to see if the introductory period and your overall debt make the transfer fee cost-effective.
Omaha’s median home value as of 2016 was $149,900. If you have a decent amount of equity in your mortgage, a cash-out refinance plan can free up enough cash for you to pay back 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 (usually up to 30 years). This strategy may lengthen the amount of time you’re in debt, but it saves you from battling high-interest fees each monthly turns all those balances you were dealing with into a manageable home payment.
When debt consolidation strategies aren’t effective — either because credit is already destroyed or your overall debt balance too high to make headway on — debt forgiveness becomes a viable alternative. Debtors can attempt debt forgiveness methods 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 completely wipe away your debt, and in as little as three months, but it’ll also result in the liquidation of your personal assets to help pay back the debt. Chapter 13 bankruptcy protects your personal assets but requires court-ordered payments to be made for three-to-five years. Of the two, chapter 7 will stay on a credit report longer (10 versus 7 years). Either route will incur attorney costs, court fees, and mandatory financial management courses.
Debt settlement, which involves a company working with your creditors to lower your balance(s) to a more manageable amount, also negatively affects credit scores. And while 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 you’re successful with debt settlement, you will be charged a percentage fee 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.
Eliminating Debt in Omaha via Consolidation
Omaha is brimming with economic opportunity. Four Fortune 500 companies make their headquarters in The Big O — including Buffett’s Berkshire Hathaway and the Union Pacific Corporation — as well as five more Fortune 1000 companies like TD Ameritrade and logistics company, Werner Enterprises. On top of that, the National Bank of Omaha is the largest privately held bank in the U.S.
But even top-tier employment prospects aren’t a remedy for large-scale debt. Living in Omaha should provide a sense of optimism that one of the above strategies is the key to not only leaving your debt behind but accomplishing your short- and long-term life goals.
Learn more about how the Freedom Debt Relief process works, or if you’d like to speak with someone over the phone about your personalized options, feel free to give us a call seven days a week at 800-910-0065.
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- One low monthly program deposit
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- Debt could be resolved in 24-48 months