Debt can be a heavy burden, one that feels like it will never end. Fortunately, there are options available to help you get out of debt and take control of your finances. One option is doing debt consolidation in South Carolina. This can help you break the cycle of never-ending payments and get on the road to financial freedom. With determination and hard work, you can take control of your life once again.
Debt is a problem for many people across the country, but residents of South Carolina seem to be struggling more than most when it comes to certain types of debts – especially credit card debts. South Carolinians have the 7th highest levels of credit card debts in the nation and more past due debts and debts in collections than the average American. This situation is causing financial hardship for many people in the state.
South Carolina Credit Card Debt Stats
The next statics can give you an idea of the average credit card debt situation in the state:
- Average credit card debt per household: $5,801
- Most used credit card: Cash back rewards
- Available credit limit available: $12,387
- Average credit utilization ratio: 34.37%
- Number of cards per person: 2.9
- % of delinquent accounts (90 days past due): 7.8%
- Average credit score: 657
Options For Debt Relief In South Carolina
There are many alternatives to payday loans that are much healthier for consumers. These options may be unfamiliar to some, but we will explore them in greater detail. Payday loans should only be used as a last resort, as they can lead to financial ruin. There are much better options available that can help you get back on your feet.
There are many reasons why someone might want to do debt consolidation in South Carolina. Perhaps they owe money to multiple creditors and want to simplify their payments. Or maybe they’re hoping to get a better deal on their APR. Whatever the reason, consolidating debt can be a helpful way to manage your finances.
Debt consolidation is a process where you take out a new loan to pay off multiple outstanding debts. This can be a useful way to simplify your monthly payments and reduce your overall interest costs. After consolidating your debts, you will just have one monthly payment to make, which should be lower than the total of your previous payments.
There are many reasons to consolidate your debt, but one of the most important is to lower your APR. An online calculator can help you figure out whether taking out a consolidation loan will save you money.
One way to get a handle on your debt is to refinance. This means taking out a new loan with different terms to lower your monthly payments. However, you will likely end up paying more over the life of the loan this way.
A refinance can be a great way to manage your debt, and mortgage refinances are one example. For instance, let’s say you bought a home when interest rates on mortgages were much higher than they are today. By refinancing at current rates, you may be able to lower your interest rate significantly – especially if you don’t extend the repayment term with your refinance.
Refinancing your student loans can be a great way to save money on interest, but there are a few things to keep in mind before you do. First, when you refinance your loans on the private market, you will no longer be eligible for any of the repayment plans, forgiveness programs, or other benefits that come with federal student loans. So it’s important to consider whether those advantages are worth more to you than a lower interest rate. Second, remember that refinancing means taking out a new loan, which will have its terms and conditions.
Suppose your student loans are already with a private lender. It’s important to do your research and run the numbers to see how a new APR and term length will affect not only your monthly payments but also the total amount you’ll pay over the life of the loan.
Balance Transfer Cards
Balance transfers can be a great way to save money on interest charges, but only if you are disciplined enough not to abuse the new credit card. To successfully use a balance transfer, look for an offer with a 0% introductory APR. This will help you reduce the amount you pay in interest each month. However, be aware that the introductory offer will only last for a set period – typically between 12 and 21 months. Make sure you have a plan to pay off your debt in full before the balance starts accruing interest again.
Transferring your balance to a new credit card will not help your credit score unless you stop using credit altogether. Balance transfers are also not a good idea for people with a history of bad credit card habits. You’re likely to just rack up more debt on the new card, which is financially dangerous.
Bankruptcy can be a scary proposition, but it can also offer hope in the right situation. It’s important to understand the process and what it entails before making any decisions.
Bankruptcy is often seen as a last resort, but it can be a positive step toward improving your credit. While bankruptcy can stay on your credit report for up to 10 years, the impact it has on your credit score lessens over time.
There are two different types of bankruptcy that consumers can file for. The first is known as Chapter 7 bankruptcy.
When you file for Chapter 7 bankruptcy, you agree to liquidate your assets to repay as much of your debt as possible.
Chapter 13 bankruptcy does not require you to sell all of your assets, but it does require you to repay more of your debt within three to five years. Rather than making your debt disappear, a Chapter 13 bankruptcy restructures your debt so you’ll have an easier time paying it off.
Your circumstances will dictate what method is right for you. Because of this, it’s a good idea to hire a lawyer to help guide you through the process. Even with legal representation, it’s still beneficial to familiarize yourself with local bankruptcy procedures, so you know what to expect.
Statute Of Limitations
There is a time limit for creditors and debt collectors to take legal action against you, known as the statute of limitations. Once this time period has passed, your debt is considered ‘time-barred’ and they can no longer try to recover it from you. Be careful not to accidentally reset this clock by admitting in writing that you will make a payment, or actually making a payment, even a small one – this extends their timeframe to sue you again.
|Mortgage Debt||20 years|
|Medical Debt||3 years|
|Credit Card||3 years|
|State Tax Debt||10 years|
|Auto Loan Debt||6 years|
Debt can be a major concern for many people, especially when it comes to medical and credit card debt. However, there are certain time limits that creditors and debt collectors can pursue you for these debts. For example, mortgage debt can be pursued for up to twenty years while state tax debt can only be pursued for ten years. As far as student loans go, the biggest concern for South Carolinian consumers is auto debt. Creditors and collectors can sue you for a delinquent auto loan up to six years after the fact.
There is nothing wrong with admitting that you have a debt problem. It is the first step to getting on the road to financial freedom. By educating yourself about your consumer rights and what is required of you, you can make a plan to pay off your debt and get back on track.