Debt Consolidation: Reno Residents Have Options Available
Slogans are designed to be catchy, but Reno’s official label of the “Biggest Little City in the World” is truly tough to forget. The city of 245,251 lies in mountainous western Nevada just 22 miles from Lake Tahoe, offering sublime skiing and snowboarding terrain and a picturesque place to call home. It also has a cost of living index of 97.6, under the 100 U.S. average.
The city’s median household income was $51,313 as of 2016, under the $55,180 state median. However, the median home value of $304,000 marks a nearly 100% since 2010 and is higher than the $239,500 median value across Nevada.
The city’s median rent of $908 isn’t much more favorable to residents, especially when paired with high-interest credit balances. For Renoites struggling to keep pace with rising housing costs and revolving debt, review these Reno debt consolidation and relief tactics.
Understanding Reno Debt Consolidation and Relief Solutions
Gazing at the sun vibrantly falling against a mountain backdrop doesn’t have as striking an effect when we’re in a precarious financial situation. Get back on track to your best mental and physical self with one of these debt-assistance methods.
Debt management programs (DMP) and credit counseling services are best suited for debtors with mild-to-moderate balance levels. If your debt hasn’t spiraled out of control completely and you can get on track with a little guidance and learned discipline, these strategies are for you.
DMPs involve making one monthly payment to a company that then uses it to pay your various creditors. Not only do these programs shoulder some of the emotional burden debt brings, but they also shield you from creditor collections and provide financial education courses.
A hefty credit balance is one thing, but several substantial balances, and with varying interest rates, is a serious problem. Reno debt consolidation strategies like getting a balance transfer card, obtaining a personal loan, or leveraging your existing mortgage could get you out of the hole.
➢ Balance Transfer
Balance transfer cards allow debtors to roll over various balances onto one card with one, usually lower, interest rate. Transfer fees range from three-to-five percent; however, balance transfer cards have interest-friendly introductory terms that last anywhere from six-to-18 months. The right terms, such as the amount of principal you’re able to pay off during the introductory period and the lowered interest rate you’ll have after, will outweigh the balance transfer cost.
➢ Personal Loan
Also known simply as a debt consolidation loan, a personal loan helps pay off all your credit balances and give you only one balance to worry about. Your best chance of getting better terms than your existing balances is to explore offers from lenders with whom you’re not already engaged in business. Why? Personal loans carry interest rates as low as four percent, but also as high as 36 percent. You stand a better chance trying to obtain a loan from a lender with whom you have no debt.
➢ Home Equity Loan/ Cash-Out Refinance
Reno’s median home value of $304,000 isn’t great news for homebuyers, but the recent spike in value is music to longtime homeowners’ ears, particularly if they’re carry high revolving balances. Why? They can use their existing equity to pay off their debt.
A home equity loan entails taking a second mortgage on a home, often at a fixed rate, and for up to 30 years. A cash-out refinance pays off the original mortgage and creates a new, larger mortgage with completely new terms.
Cash-out refinances carry closing costs and fees. But if favorable new terms (interest rates and repayment schedule) can be negotiated and a debtor has enough equity to eliminate their credit balances, then paying the fees might make financial sense.
These strategies can all change a debtor’s circumstance but won’t be as viable—or in some cases, possible—with a badly damaged credit score.
When your overall balance is beyond a lifestyle tweak or financial product, more dire measures are needed. Debt settlement (aka debt relief or debt forgiveness) involves a third-party company negotiating with creditors to lower a debtor’s balance. Debt settlement works best when debtors have damaged credit scores, as the process requires a debtor to halt payments, instead saving them in a separate account. As savings grow, the settlement company makes offers to creditors to resolve the balance. Debt settlement takes anywhere from two-to-four years to resolve and companies charge a fee each time a debt is settled.
Starting Fresh in Reno
Aside from gaming and tourism, Reno is supported by a large educational sector, with the Washoe County School District and University of Nevada employing 8,750 and 4,750, respectively. Meanwhile, medical centers like Renown Regional (2,750 employees) and Saint Mary’s (1,250 employees) bring more diversity to the area’s economy.
As the ‘Neon Babylon’ looks poised for continued growth in the future, investing in a home and starting a life in the Reno metro area are looking like wise moves. But losing hundreds of dollars in interest each month won’t help you achieve this dream. If you’re a Renoite and are sick of having the weight of insurmountable debt on your shoulders, it’s time you took action to regain your financial freedom.
The solution to your troubles could be a phone call away. Call 800-910-0065 to speak with a debt specialist today and start your road to financial health.
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- One low monthly program deposit
- Settlements for less than owed
- Debt could be resolved in 24-48 months