Consolidate your debt in South Carolina to become debt-free easily
South Carolinians had the seventh-highest levels of credit card debt in the country and more past due debt and debts in collections than the national average. As a result, many South Carolina residents have sought options that will allow them to regain control faster than standard payment methods, such as credit counseling.
You can consider a debt management program to overcome the issues if you are in debt. If you're having financial difficulties, call us at (800)-530-OVLG or fill out an online application to receive a free debt and budget analysis from a qualified credit counselor.
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Debt Statistics in South Carolina
The following statistics can provide some perspective on how debt is currently impacting residents of the state:
- Average credit card debt per household: $5,801
- Average available credit limit: $12,387
- Credit utilization ratio (debt vs. available limit): 34.37%
- The average number of cards: 2.9
- % of delinquent accounts (at least 90 days past due): 7.8%
- Average credit score: 657
- A most popular type of credit card: Cash back rewards
What is debt consolidation?
Debt consolidation involves consolidating your debts into a new loan. You will minimize your monthly payments on your credit card debt by paying off high-interest debt with a debt consolidation loan or personal loan—the deficit in two ways.
Take out a consolidation loan
Debt relief companies, banks, credit unions, and online lenders provide debt consolidation loans in South Carolina. Consider the loan's APR when applying for a debt consolidation loan in South Carolina. It should be lower than the interest rates on your existing obligations to save money. The loan's origination charge, funding amount, and payoff time are also crucial considerations.
A debt consolidation loan is for paying various existing obligations, merging them into a single balance with a monthly payment. Obtaining a debt consolidation loan in South Carolina is similar to getting one in any other state because all of the country's best lenders are available.
Once you obtain a debt consolidation loan in South Carolina, you must manage it responsibly to get out of debt sooner and improve your credit score.
Enroll in a debt management plan
A debt management plan prevents you from incurring new debt. Instead, a nonprofit credit counseling firm will assist you in creating a budget and renegotiating the payment terms on your credit card debt.
An account will be set up to keep track of all the balances owed to current creditors. A credit counseling organization will negotiate with creditors to minimize interest rates and decide on affordable monthly payments before beginning repayment. Once these are established, the sum of all charges is calculated and debited from your bank account as one monthly payment.
The debt management firm will then pay your creditors on your behalf.
Debt consolidation vs. debt settlement
Debt consolidation is not the same as a debt settlement. Consolidating your debt entails obtaining a new loan or debt to repay the entire amount owed. Only a percentage of your initial total is compensated with a debt settlement. A debt settlement will also have tax implications, and your credit score will suffer.
Other Debt relief options in South Carolina
Balance transfer
Another typical strategy is a credit card balance transfer. A cheaper interest rate is offered with a credit card balance transfer during the promotional time. However, find out how much transfer fees will cost you.
Refinancing
Although refinancing your mortgage or obtaining a home equity loan will lower your monthly payments, it will cost you more in the long term. Your property's equity is also reduced, and loan origination fees may apply.
Subtract your mortgage's balance from your home's value to calculate your equity. Unsecured debt consolidation loans pose the least risk because you could face foreclosure if you default on your mortgage or home equity loan.
Conclusion
Bankruptcy is the last option anyone wants to consider, but it is accessible when all else fails. Consumers who file for bankruptcy have a second chance to get their finances in shape. It will be tough to find credit anyplace because bankruptcy lingers on your credit report for 7 to 10 years. But you will be free of unsecured debt.
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