The economy in Texas is booming and is second only to California with $1.65 trillion generated annually. Home to some of the top corporations in the country, Texas has a low unemployment rate, but that doesn’t mean that its residents are all flourishing equally. In fact, many Texans are living under a burden of debt that is weighing them down. The average Texan is carrying nearly $7,000 in credit card debt, and many are facing thousands of dollars more in medical, student loan and other consumer debt. Debt consolidation in Texas might just be the answer for cash-strapped consumers.
Carrying a lot of debt can have some serious adverse effects on a person’s life. Not only can a heavy debt load affect your credit score negatively, but it can also cause a great deal of stress and anxiety. Debt doesn’t have to destroy your financial future. In Texas, you have several options for managing even overwhelming debt and clearing your way to financial freedom.
Debt Solutions in Texas
Bankruptcy is perhaps the best-known debt solution. When a person files for bankruptcy, debts can be paid off or discharged while the court protects you from further collection activities. However, bankruptcy can seriously affect your credit and does not discharge certain types of debt, such as secured debts. It can also leave your home and other assets vulnerable.
Debt settlement can be another option. With debt settlement, you’ll negotiate with your creditors to settle for less than the total amount you owe. Debt settlement can wipe out your debts, but it won’t happen overnight. If you are serious about getting out of debt, its important to steadily pay down your bills. One of the biggest benefits of debt settlement is that consumers can often settle for pennies on the dollar. However, this option can result in a lowered credit score for at least a few months. Once you begin to make good on your payments each month, your credit score will begin to climb again.
Another way to rid yourself of debts is by choosing debt consolidation in Texas. With debt consolidation, you can roll your smaller debts into one larger debt. The program can make a big difference for many consumers. With debt consolidation, your existing debts will be paid off, and you’ll have just one creditor to pay. You’ll often even be able to lower your interest rates and monthly costs.
Types of Debt Consolidation Programs
Debt consolidation loans involve a loan from a single creditor that will pay off the debts with your current creditors. These loans may be secured by an asset, so failing to pay the debt could lead to the forfeiture of your property. Unsecured debt consolidation programs are also available. These programs can be used to pay off your current creditors, lower your interest rates and simplify the payment process.
You can consolidate a wide variety of debts in a debt consolidation program, including:
- Credit card debts
- Unsecured loans and other debts
- Medical debts
- Payday loans
- Late bills or accounts in collections
The Benefits of Debt Consolidation
Consolidating your debt can give your finances and you some breathing room. You can enjoy the peace of mind that comes from getting rid of all those debts as well as the confidence that comes from paying off your debts. You can simplify your life while freeing up your future.
Other benefits of debt consolidation programs include:
1. Savings on interest rates
High interest rates can cause debt to snowball. A few hundred dollars on a credit card can become $1,000 or more in a matter of months. By lowering your interest rates, you can save a lot of money and take years off the repayment time.
2. A simplified life
Instead of paying two, three or more credit card bills, you’ll have just one convenient bill to a single creditor. You don’t have to juggle due dates or different account numbers, and you’ll be less likely to have a mishap from a forgotten or confused due date.
3. Rebuilt credit
As your credit card bills increase in number and size, your credit score can decrease. By paying off all those debts with a single loan, your credit score will increase. Your credit utilization is lowered, and your risk of late payments, forgotten payments or similar mix-ups decreases, too. Once your debt is completely paid off, your credit score will increase.
Legal Protections for Consumers in Texas
While federal laws offer significant protection for consumers, Texas laws go a few steps further. The Texas Debt Collection Act works in conjunction with the Fair Debt Collection Practices Act and prevents creditors and debt collectors from using misleading, abusive or fraudulent means to collect on a debt. Federal laws are limited to debt collectors and attorneys while Texas laws apply to all creditors. When you work with a debt consolidation program, your individual debts will be paid off quickly, which will end the collection efforts in virtually all cases.
Texas also limits how long debt collectors can continue to sue consumers. Creditors have up to four years to attempt to collect on debts. After this period, the statute of limitations prevents them from continuing any further collection efforts.
Contact Us Today!
Are you suffering under a burden of debt? There’s a light at the end of the tunnel. Christian Debt Counselors can help you find the best program for debt consolidation in Texas for your needs. Contact us today to learn more or to get started on your financial freedom.