If you’re thinking about applying for a debt consolidation loan in VA, you’re not alone. Virginia residents carry significant amounts of debt. In fact, the Old Dominion is ranked in the top 10 states with the highest amount of credit-card, mortgage and student-loan debt among its residents.
Debt consolidation is a practical solution for people who are struggling with debt. Consolidation reduces your costs by cutting interest rates and lowering your monthly payments. With a consolidation loan, you can combine multiple bills into one debt with a single monthly payment, simplifying your bill-paying process while you save money and pay off your debt faster.
What qualifies for a debt consolidation loan in VA?
Most unsecured debt can be included in a debt consolidation loan. Unsecured debt isn’t tied to an asset, like a house or car. This way, if you are unable to repay an unsecured debt, you won’t suffer the loss of any assets. Credit card balances and personal loans are usually unsecured as well as medical debt.
Other types of unsecured debt that can be included in a consolidation loans are as follows:
Compared to the rest of the United States, Virginia residents have the fifth highest amount of credit-card debt per capita as of February 2018, according to Forbes. City-dwellers, such as those who live in Norfolk and Richmond, tend to carry the heaviest loads of credit-card debt.
Most credit cards are unsecured. However, there are some that are secured, meaning that they’re backed up with a deposit. If you don’t pay on a secured credit card, the bank keeps your deposit.
Credit-card debt can accumulate quickly, especially if you’re unable to pay more than the minimum monthly payment. An average credit-card interest rate is 15.3 percent, and that rate can go up to 29 percent or higher. Some credit-card banks will increase your interest rate if you miss a payment, creating a vicious cycle of mounting credit-card debt. That’s why including your credit-card debt in your debt consolidation loan can provide some much-needed relief from financial strain.
Private student loans
The cost of tuition at Virginia’s public colleges and universities keeps going up, and so does the amount of student-loan debt that Virginians carry. The cost of tuition has gone up 6 percent every year from 2007 to 2017. The Washington Post reports that Virginia graduates face an average debt of $30,000 in student loans.
Private student loans are funded by banks or other private lenders. The terms of your loan are based on your credit history. These loans have some perks, like letting you defer payments until after graduation. All the same, many Virginians are overwhelmed with private student-loan debt and are understandably desperate for relief and ready to seek help from a debt consolidation company to get back on track.
Perhaps you may have taken out a personal loan for any number of reasons. Personal loans can help fund a start-up business, cover the cost of home repairs or the purchase of a used car. Although this type of debt usually has lower interest rates than credit-card debt, the exact terms of your loan depend on your creditworthiness and other factors.
Business credit-for-cash lines
Business owners appreciate having an unsecured line of credit for cash that they can tap into when they’re facing an unexpected expense. A bank credit line can be the traditional type that offers a fixed line of credit with check-writing privileges, or it can be a nontraditional bank credit line, which is utilized in the form of a company credit card. This type of debt usually has low initial percentage rates and flexible repayment options.
Medical debt is a form of unsecured debt. The need for medical care can crop up unexpectedly, making it difficult to plan for it in advance. Forty percent of Americans have debt that is the result of an illness, and a large amount of medical debt is a top reason that U.S. households file for bankruptcy. One source states that 64 million Americans were having difficulty paying their medical bills in 2014. For this reason, it is important to take control of your finances and seek assistance from a trusted debt consolidation company.
Utility and cell-phone bills
Money that you owe to a utility company is unsecured debt. While a utility company can disconnect your service with them, they can’t seize any of your property. Late fees can quickly add up and make it a struggle to pay your utility bills. Mobile-phone bills also fall into the unsecured-debt category. A consolidation loan is one way to get caught up on your bills and regain control of your finances.
If you fall behind on paying your rent or you move out before your lease is up, you’ll become indebted to your landlord. Although a landlord can take legal action to have you evicted from their property, the money you owe them is an unsecured debt since it isn’t tied to any property, and the landlord has no right to your belongings.
How a Debt Consolidation Company Can Help
If you’re struggling with debt and afraid that you might be losing the battle, there’s hope in the form of a debt consolidation loan. If you’re ready to turn your financial life around, contact Christian Debt Counselors today. We work alongside Virginia residents and help to free them from the burden of credit-card and other unsecured debt.
In order to find the right plan for your needs, our professional debt counselors will work with you to assess your personal situation. We will provide you with all the tools you need so you can make the most informed decision on how to get out of debt.