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What steps do you need to take to combine your debt in Georgia?

The residents of Georgia enjoy a simple life with an average cost of living that is comparable to the national average. Georgia has a mix of both city life and country life. Despite the average cost of living, Georgians still face debt issues. The most common type of debt in Georgia is credit card debt. The average Georgia person has $7,090 in credit card debt, placing them 31st in the country for credit card debt.

Even though this is slightly lower than the overall average in the US, Georgia is ranked in the top 15 states regarding unsustainable credit card debt. This means that average Georgians take significantly longer to repay their credit card debt. Everyday expenses make up a large part of the budget, making it all too normal for credit card debt to go to the bottom of the priority list.

If you, like others, have gotten into a position where you can't seem to keep up with your debt, it may be time to seek expert help to find a solution. Debt consolidation is a great way to solve your debt problems.

How does debt consolidation work in Georgia?

Debt consolidation means putting all of your outstanding debts into one monthly payment. This way, consolidating your debt will lower the total amount of your monthly payments, and a payment structure that is both manageable and safe can be established by participating in it.

You can consolidate your debt in three simple ways:

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Balance transfer card

Balance transfer cards can help you combine your various loans into a single account. The card usually gives 0% APR for a limited time on balances you transfer. You can pay off your debt without paying interest during the introductory offer period, which generally lasts from 12 to 20 months. This is an easy way to use credit card refinancing to pay off your debt.

While balance transfer credit cards can help you reduce your mounting debt, they must be used with caution because, after the introductory period expires, their interest rates tend to be higher than those of other credit cards. Your credit card debt could grow if you don't pay it off at the end of the introductory period or if you keep making purchases on it after that time has expired.

Is a balance transfer card the right choice for you?

For Georgia consumers with heavy debt, a balance transfer card can be a good option because it is an easy and quick way to get out of debt. Some balance transfer cards don’t charge a transfer fee, but some cards can charge a transfer fee of about 3% to 5%. After the transfer, the card provides 0% to 1.99% interest rates for about six to eighteen months. After the introductory period is over, the card will start to charge an interest rate of 8.74% to 22.99%. However, to get a balance transfer card, you must have a minimum credit score of 650.

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Debt consolidation loan

Using a debt consolidation loan is the process of taking out a new loan to pay off existing liabilities and consumer debts. Debt consolidation is combining several smaller loans into a single, larger loan with better payoff terms, such as lowered rates, lowered monthly payments, or both. Student loans, credit card debt and other forms of debt can all be consolidated.

Many lenders, like traditional banks and peer-to-peer lenders, offer debt consolidation loans as part of a payment plan for borrowers who have trouble paying off their debts because they have too many or too large of them. These are made for people who have a lot of high-interest debt and want to pay it off.

Is a debt consolidation loan a good option for you?

A debt consolidation loan is another simple way for Georgia consumers to become debt-free. Typical debt consolidation loans have interest rates ranging from 6.49% to 16.47%, depending on the term and the individual's credit score. It is preferable to have a credit score of 670 or above when considering a debt consolidation loan.

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Debt consolidation programs

It is possible to combine several loans into a single monthly payment through the use of a debt consolidation program. Most of the time, a "program" is a service or set of services that a credit counseling company or organization provides: All you have to do is make single monthly payments to the company, and they will then send your payments to your creditors.

Consolidation loans and programs achieve similar outcomes but are very different in how they accomplish this. The primary distinction between a debt consolidation loan and a debt consolidation program is that a loan results in your debt being transferred to a new loan. A program is a service that helps you pay off your debts right where they are.

These programs come with a counseling session that lets you understand your financial situation. Then the credit counselor negotiates a deal with your creditors, lowering your interest rates and creating a payment plan where you only have to make single monthly payments to the debt consolidation company.

Is a debt consolidation program the perfect fit for you?

In Georgia, the credit counselors of non-profit or for-profit credit counseling agencies consider your income and the total amount of debt you have to make an affordable payment plan for you. They negotiate with your creditors on your behalf to reduce the interest rate to around 8%. With the program, you get a debt management plan that helps you manage your debt and your monthly payments systematically. You can be debt-free in three to five years with the help of a Georgia debt consolidation program. You should remember that credit counseling agencies should not charge you more than 7.5% of your total amount as fees for their services.

What types of debt can you consolidate in Georgia?

You can only consolidate unsecured debts like:

  • Personal loans
  • Student loans
  • Payday loans
  • Credit card debt
  • Medical bills
  • Installment loans
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Statues of limitation in Georgia

Every debt has an expiration date, and collection agencies cannot sue the customer until that time period has elapsed. This is called the "Statute of Limitations." Ensure the debt is still owed, and the due date hasn't already passed. You should be aware of the following deadlines:

  • Written contracts have a six-year limit.
  • Oral contracts have a limit of four years.
  • For medical bills, the limit is four years.
  • Credit card debt has a limit of four years.

When the statute of limitations on the debt has already run out, you should avoid making any payments toward it. If you do so, the statute of limitations will start over again. You can ask for the case to be dismissed if the debt collector waits for more than the set limit after you default on the debt or make your last payment.

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