Different states have different levels of credit card debt. Washington, for example, has an average unsecured debt of $4,965, putting it at number 12 of the top 20 states for high balances. Per household, the average credit card debt in Washington is $8,108.
This article will cover what you need to know about debt consolidation in Washington. You’ll also learn about the current income and debt stats and how to get out of debt without taking on more high-interest loans.
Washington Debt Stats
The next statics can give you an idea of the average credit card debt situation in Washington:
- Credit card debt per household: $8,108
- Most popular credit card: Travel rewards
- Available credit limit: $22,162
- The Credit utilization ratio and debt: 25.93%
- Number of cards: 2.99
- % of delinquent accounts (the last 90 days): 2.26%
- Credit score: 693
Options For Debt Relief In Washington
You can do a few things to get out of debt more quickly. Some popular options are covered here, along with when they might make sense.
When you have multiple debts, it can be tough to keep track of everything. You might have a personal loan, medical debt, credit cards, and more. This is where doing debt consolidation in Washington comes in. A debt consolidation company pays off all your existing debts and combines them into one single loan.
This way, you only have to worry about one bill each month. The debt consolidation company might also give you a lower interest rate since you owe them more. This could lower your monthly payment even more.
The money you pay each month on a loan can be divided into two parts: the amount that goes towards interest and the amount that reduces your overall balance. Having a lower interest rate means that more of your monthly payment will go towards reducing your balance rather than being wasted on high-interest payments.
Some loans give you the opportunity to refinance, which means replacing your existing loan with a new one that usually has a lower interest rate. This can be done with common types of debt such as mortgages, auto loans, and student loans.
Refinancing your debt can be a great way to save money on interest payments, but there are some things you should keep in mind before making the switch. For example, federal benefits like loan forgiveness and unemployment deferment may no longer be available to you once you refinance with a private lender. Make sure to weigh the pros and cons carefully before making a decision – lower monthly payments may not be worth sacrificing important protections.
Balance Transfer Card
A balance transfer credit card can help you save on interest and pay off debt faster. Here’s what you need to know about how they work.
When you first sign up for a balance transfer credit card, you’ll usually get a low or 0% interest rate for a promotional period. This means that your entire payment will go towards paying off your debt. You can transfer over balances from other credit cards or loans to the new card so you can take advantage of the low-interest rate and pay off your debt more quickly.
At the end of the promotional period, which typically lasts 12-21 months, the credit card will start charging interest again. So your goal should be to pay off as much debt as possible during the promotional period. Otherwise, you could end up with even more debt than you started with.
Most balance transfer credit cards will charge a fee when you transfer debt from another credit card or loan. The fee is typically around 3%.
There are two types of bankruptcy for consumers: Chapter 7 and Chapter 13. While both can provide some relief from debt, they each work in different ways.
Chapter 7 bankruptcy allows you to discharge most of your outstanding debts so you don’t have to pay them back. However, there are some types of debts that can’t be discharged in bankruptcy, like certain tax debts or child support.
During the Chapter 7 process, you may need to sell some of your assets to repay your debts before they are wiped out. There are exemptions that allow you to keep some property after bankruptcy. In Washington, some of the properties you can keep include up to $125,000 of equity in your personal residence, a car, and up to $3,000 of personal property like cash, clothes, and furniture.
Filing for Chapter 13 bankruptcy protection sets up a repayment plan that can last three to five years. During this time, you will still be responsible for repaying your debts, but the amount you owe may be reduced or restructured to make it more affordable. At the end of the repayment period, any remaining debt may be discharged.
While bankruptcy can provide some relief from your debts, it will also have a major impact on your credit score and remain on your credit report for up to seven years (Chapter 13) or ten years (Chapter 7). This can make it difficult to borrow in the future and should not be taken lightly. However, sometimes bankruptcy may be the best option available to manage your debts.
Statute Of Limitations
The statute of limitations is the amount of time a creditor has to take you to court. Once your debt gets past this point, the collection agency can still try to get you to pay, but it is no longer able to sue you or take other legal action.
Each state has different timelines for the statute of limitations. In Washington, the statute of limitations is as follows:
|Mortgage Debt||6 years|
|Medical Debt||6 years|
|Credit Card||6 years|
|State Tax Debt|
|Auto Loan Debt||4 years|
You may be contacted by a collection agency about an old debt. Be careful about making any payments, as this can reset the statute of limitations and allow the collector to take you to court again. Consult with a lawyer or credit counselor to determine whether you are still liable for the debt. In Washington, you can send a letter to the collection agency demanding that they cease contact with you.
Debt is a serious problem for many people, but it is possible to get out of debt with the right knowledge and resources. This guide provides information on the rules and resources available for debt consolidation in Washington state to help you develop a plan to get out of debt.