Credit card debt is prevalent throughout the U.S., but the debt that Virginians are carrying is among the highest. Although this is troubling, Virginia is also a state where residents are earning median household incomes of over $60,000 a year, so they are prime candidates for the debt consolidation loan VA. If Virginia residents could reduce their credit card interest rates, getting out of debt would be more attainable. With the help of a debt consolidation company, this is a distinct possibility.
On average, each person in Virginia owed $6,336 in credit card debt in 2012 according to the Washington Examiner. The national average was only $5,637, but Virginians have worked to bring their average down over the years. In 2010, they owed $8,020 on average in credit card debt.
Two cities stand out in the state of Virginia for high credit card debts, and they are Richmond and Norfolk. The sixth highest credit card debts belong to the citizens of Norfolk, and the ninth highest credit card debts belong to the citizens of Richmond.
Laws in Virginia for Debt Consolidation
The laws in Virginia do not really address this issue, but there are federal laws that do apply to all residents of Virginia. One of them is the “Fair Debt Collections Practices Act.” This is a federal law that limits the behavior and actions of third-party debt collectors who are attempting to collect debts on behalf of another person or entity.
In Virginia, credit card debt is under a statute of limitations. This means that your creditors cannot make any attempts to collect a debt after five years have passed. They also must not report the debt to the credit bureaus. If they do not have your signature on any documents that relate to the debt, the statute of limitations is shortened to three years. Even though these creditors cannot sue you or threaten to sue you after the statute of limitations has expired, they are still allowed to contact you about your debts according to the Fourth Circuit.
What Is a Debt Consolidation Loan VA?
You may have heard of a debt consolidation loan VA, and perhaps you are wondering if this might be something good for you. Debt consolidation isn’t for everyone, but it can definitely help those who prove to be good candidates. Right now, you have several debts to pay, and they are making it extremely difficult for you to make ends meet. All of your debts have different interest rates, and these may be very high. Currently, your debts are costing you a lot in interest, but they are also causing you stress.
A debt consolidation loan is one loan that will be used to pay all of your other debts in full. This leaves you with one loan to repay rather than the five or more that you are currently paying. Taking away the stress of meeting different deadlines and wondering how much you owe to each creditor can be eliminated when you choose to work alongside a financial counselor.
The other wonderful thing about a debt consolidation loan is the fact that your counselor will likely be able to reduce credit card interest rates so that your new interest rate will be lower than the rates you are paying on all of your debts. This will save you an incredible amount of money. Rather than making several high payments every month, you will only pay one bill for everything. This will make it possible for you to pay off your debts in full in less time than it would take you to pay them if you were to continue on your current path. In addition to that, your credit reports will not suffer any negative consequences. In fact, you may see an increase in your credit score over time.
Secured Debt Consolidation Loans
One way that you can obtain a debt consolidation loan is to apply for a secured loan. A secured loan is one with which you will offer the lender collateral. The collateral can be your house or your car. You can also use financial vehicles, such as a life insurance policy that has a cash value, annuities, lawsuit claims, lottery winnings or your 401(k).
If you are able to obtain a secured debt consolidation loan, you will be entitled to the lowest interest rate because the lender will have an asset to seize in the event that you fail to repay the loan. This is also the reason that it is easier to obtain this type of loan because you are more likely to pay the lender if your home is on the line. You may even be able to deduct the interest at tax time.
If you don’t own a home or any of the assets listed above, you don’t have to worry. You can also apply for an unsecured debt consolidation loan, but in order to be approved for this type of loan, you must have excellent credit.
Is Debt Consolidation for Me?
Debt consolidation could be for you if you feel as if you cannot pay your debts in a reasonable amount of time, or if the debts are causing you to experience an inordinate amount of discomfort. The fact is that a debt consolidation loan will not solve your problem if you do not learn how to handle your finances in a more responsible manner. This is critical to helping you remain committed to your quest to live a financially stable existence for the rest of your life.
With a debt consolidation loan, it takes consumers three to five years to pay their debts in full. You will need to spend that time learning new, positive spending and saving habits to make this plan work. Christian Debt Counselors can help you with everything from debt consolidation loans to planning for a debt free future. For assistance with your overwhelming debts, contact us today.