Debt consolidation in Maine can be a helpful solution for many families who are struggling with their finances. Unemployment, fluctuations in the housing market, and other factors can all contribute to mounting debts that seem impossible to overcome. However, by working with a professional credit counseling service, you can develop a plan to get your debts under control and begin rebuilding your financial future.
Maine residents have some of the highest levels of debt in the nation. The average cardholder uses over 32% of their available limit – which is bad for your score. And 6 out of 100 residents have at least one card that’s more than 90 days past due. Many are turning to balance transfer cards to try and pay off their debt faster, but these do-it-yourself solutions don’t always work.
Maine Credit Card Debt Statistics
The statistics below can help you understand what is happening in Maine.
- Average credit card debt per household: $5,803
- Average available credit limit: $14,725
- Credit utilization ratio (debt vs available limit): 32.31%
- Average number of cards: 2.9
- % of delinquent accounts (at least 90 days past due): 6.42%
- Average credit score: 689
- Most popular type of credit card: Balance transfer
Options For Debt Relief In Maine
There are many different ways that Maine residents can get out of debt. Some strategies may be better for preserving your credit, while others may help you pay off your debts more quickly. It is essential to weigh all your options and choose the best solution for your situation.
Be wary of companies that promise to help you eliminate your debt. Some companies may not have your best interests in mind and could do more harm than good. Do your research before working with any organization to ensure they are reputable and will help you achieve your financial goals.
There are many potential benefits of doing debt relief in West Virginia. By consolidating multiple debts into one loan, you can often get a lower interest rate and simplify your finances. However, it’s important to understand the potential risks and benefits of consolidation before you apply for a loan.
There are many potential benefits of doing debt relief in Maine. By consolidating multiple debts into one loan, you can often get a lower interest rate and simplify your finances. However, it’s important to understand the potential risks and benefits of consolidation before you apply for a loan.
One benefit of consolidating your debts is that you may qualify for a loan with a lower interest rate, even with a less-than-perfect credit score. This can save you money over time and make it easier to pay off your debts. However, you may also have to pay fees upfront, which can add to your overall balance. Make sure you understand all the terms of any consolidation loan before you sign on the dotted line.
Debt Management Programs
Debt management programs can help you get your spending under control and improve your credit score. They typically involve working with a certified credit counselor to create a budget and repayment plan. You may also be able to consolidate multiple debts into one payment and negotiate away fees and interest rates. While these programs can be helpful, they can also damage credit if you close credit cards or miss payments.
A standard refinance could lower your interest rate and monthly payment, depending on the loan’s terms. This would free up more money each month to put towards your debts. With a cash-out refinance, you could also take equity out of your home in a lump sum to pay off debts. Remember that a cash-out refinance will likely raise your monthly payment, and refinancing to a new 30-year term resets the clock on your mortgage. This may be counterproductive to your plan of paying off your home sooner.
As car prices continue to rise, many people find it challenging to finance their purchases. However, another option may be available to help ease the financial burden – refinancing your car loan.
Refinancing a car loan can have several benefits. First, it may extend the loan period, giving you more time to pay off the vehicle. It may also result in a lower interest rate, which can save money in the long run. Finally, it can also help reduce your monthly payments.
Of course, there are also some potential drawbacks to refinancing a car loan as well. For example, by extending the loan period, you may end up paying more on the vehicle than it is worth.
Balance Transfer Card
With a balanced transfer credit card, you can take advantage of low or zero APR rates to save money on interest payments. By transferring an existing credit card balance to a new card with a promotional period of 12 to 21 months, you can keep more of your hard-earned cash in your pocket. Just be sure to compare offers carefully, as there may be a transfer fee involved.
There are some downsides to balancing transfer cards with low-interest rates, especially zero interest rates. Most of these cards require a credit score of 700 or higher, so people with lower credit scores may not be able to qualify. Additionally, it’s possible that your debt exceeds the transfer limit on your new card, which means you’d have to take out more than one card. Another downside is that promotional periods might not be long enough to get your debts paid off, so you could find yourself in a similar situation again down the road.
Home Equity Loan
Would you like to find a way to pay off your debts quickly without having to take out a new loan? You may be able to do this by using the equity in your home.
Home equity loans are considered second mortgages, and they can provide you with a lump sum of money that can then be used to pay off your debts. Most home equity loans have fixed rates, and the best rates are typically available to those with the best credit. Lenders will generally allow homeowners to borrow up to 85% of their home’s loan-to-value ratio (LTV), which means that you could potentially use your home’s equity as collateral for the loan.
Of course, one downside to using equity to pay other debts is that you could be putting your home at risk. Defaulting on your new loan could result in foreclosure proceedings being started against you.
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If other debt management options aren’t doable, you may consider filing for bankruptcy. While this can be seen as a last resort, given the severe and long-lasting effects on your credit, it may also end up being the best chance for a fresh start for those who are at the end of their financial rope. According to the Administrative Office of the U.S. Courts, there were more than 765,863 individual bankruptcy filings in 2017 and 12.8 million between 2005–2017.
In Maine, as in other states across the country, consumers have two main options for filing bankruptcy: Chapter 7 and Chapter 13. A Chapter 7 filing wipes out a consumer’s debts by liquidating their existing assets to pay creditors. Major debts that can be paid through this type of bankruptcy include credit card debt, medical bills, legal judgments, and personal loans.
Individuals must pass the means test in order to file for Chapter 7. This test compares the filer’s median family income to that of same-size families in the state to determine if they qualify for this type of bankruptcy; if their income is too high, they may need to file Chapter 13. A Chapter 7 bankruptcy stays on your credit report for ten years.
Statute Of Limitations
State laws determine how long creditors have to file a lawsuit to collect on a debt. This time period is known as the statute of limitations, and it varies from state to state.
In Maine, the statute of limitations for consumer debt ranges from four to 20 years. The clock starts ticking once the borrower stops making regular payments. A judge also has the option of applying the statute of limitations of the state where the creditor is located.
For example, let’s say you live in Maine, but the owner of the credit card debt you’ve defaulted on is based in California. In this case, the judge could decide to go by California’s statute of limitations instead of Maine’s.
According to Maine law, debt collectors have ten years to place a lien on your property for unpaid taxes. However, this statute of limitations can be extended an additional ten years under certain circumstances. Once the statute of limitations expires, debt collectors are no longer able to sue you, but they may still contact you about the outstanding debt. Therefore, it is important not to make any payments or promises to pay after the statute of limitations has expired, as doing so could reset the clock and give the debt collector another chance at taking legal action.
|Mortgage Debt||20 years|
|Medical Debt||6 years|
|Credit Card||6 years|
|State Tax Debt||6 years|
|Auto Loan Debt||4 years|
Debt can be a difficult problem to manage, especially when it feels like you’re stuck on a financial merry-go-round. But it is possible to get your debt under control, no matter where you live. In Maine, there are several options available to help you pay off your debt and regain financial stability. You can choose a debt management program, refinance your home or auto loan, or even file for bankruptcy. No matter what route you decide to take, putting an end to your debt is possible.Clearone Advantage, Credit Associates, Credit 9, Americor Funding, Tripoint Lending, Lendvia, Simple Path Financial, New Start Capital, Point Break Financial, Sagemore Financial, Money Ladder, Advantage Preferred Financial, LoanQuo, Apply.Credit9, Mobilend