For Florida readers who are seeking debt relief, debt consolidation programs may seem like an attractive and viable option. However, before turning to this path for debt relief, there are many factors to consider. Consumers may be surprised to know that there are often hidden risks with these operations and they may end up facing an even more severe financial situation.
No one plans to let their credit card debt get out of hand, but for many, unforeseen circumstances or an inattention to spending habits can lead to a serious debt issue. In many cases, credit card debt levels reach staggering heights before it becomes obvious that something must be done to regain financial stability. One path that many in Florida consider is debt consolidation.
Many college graduates in Florida have trouble keeping up with their student loans. Not only are many Florida residents carrying very significant amounts of student loan debt, but they also often have 10 or more separate student loans, making it difficult to keep track of payments. Some people who have such difficulties may consider student loan consolidation.
Facing multiple debts on an income that isn't enough to cover them can be a frightening experience. Fortunately, there are avenues available to help people who need to consolidate debts into more manageable payments. Orlando residents might be interested to learn that Casey Anthony has had most of her $790,000 in debt discharged.
If one number is more important to Florida residents' everyday financial lives than any other, it's probably not their social security number, cell phone number or even their credit card number. No, the number that affects everything from where they can rent an apartment to whether they need debt relief is their credit score.
Many Florida residents find themselves looking for ways to reduce outstanding debts. One option that may help homeowners find a measure of relief from overwhelming debt is to use a home equity loan to pay off other outstanding debts. One mortgage broker reported helping a client obtain a loan of $465,000 on a home worth $620,000. What the client primarily wanted to do was eliminate a home equity line of credit on which they owed nearly $37,000. The cash that the couple obtained was more than enough to pay $70,000 toward the line of credit and credit card debt. With an interest rate of only 3.75% and a 30 year term, the resultant payment was lower than what the couple had paid previously.
In recent years, many Florida residents have found themselves in the unfortunate position of potentially losing their homes to foreclosure. This process can be confusing and overwhelming, especially where the foreclosure comes about through circumstances beyond the control of the borrower.One 57-year-old woman in another state spent more than two years attempting to avoid foreclosure. She has made telephone calls, completed forms, protested her payments and even had meetings with the bank. However, her efforts were in vain. The bank sent the woman a letter that purported to offer relief yet wanted to increase her payments by more than $200 per month, which is not a practical solution for a grandmother struggling to make ends meet. After 12 years in the home, the woman still has not received a reasonable mortgage modification and now faces foreclosure.
Florida residents who are struggling with debt may feel like everything is a constant reminder of how much they owe. In some cases, they could be facing the threat of foreclosure or already be in a situation where wages are being garnished by creditors.
Out of control credit card debt often leads people to seek out debt relief. This can include discharging debts through a Chapter 7 bankruptcy or reorganizing what is owed with a Chapter 13 bankruptcy. However, some go with the route of debt consolidation hoping that combining multiple debts into one payment will lead to better control of their financial situation.
In today's day and age, with so many people struggling under credit card debts and low credit scores, it is often tempting to sign up with one of the debt settlement, debt consolidation or credit repair companies for what seems like a quick financial fix. However, the truth is that while many of these companies may tout a pain-free process, many of these types of plans can actually do more harm than good, and other debt relief options may in fact really be the best way to go.