Florida FL Debt Consolidation
Do you live in Florida? Do you need to consolidate debt? You aren’t alone. In addition to the Sunshine State’s great beaches and tans, residents of Florida have been racking up credit card debt, personal loans, and other unsecured debts at alarming speeds. Can you believe that Floridians have over $63 billion in credit card debt?
In fact, two of Florida’s cities (Miami and Tampa) rank in the top 25 cities with the highest average credit card debt in the entire country. Having too much debt in Florida is almost as common as eating turkey on Thanksgiving.
Northerners have been escaping to Florida to avoid the cold winters, making tourism the life and blood of the economy. Millions still come to Florida to visit Walt Disney World in Orlando and party in Miami. Whatever city you may live in – Jacksonville to Tampa to St. Petersburg – a debt consolidation solution is available for you.
Here are some Florida debt statistics that you may not be aware of:
The average Florida household has $8,744 in credit card debt of which $515 was paid down this last year.
The total credit card debt of all Florida residents is over $63 billion of which $3.9 billion was paid down last year.
Florida Debt Consolidation Options
Florida Debt Consolidation Loans
Taking out a loan in Florida to consolidate your debt is another popular option but is debt consolidation a good idea? It can reduce your overall monthly payment and provide some short term relief. That’s the good news. The bad news is some of these loans have longer terms and it could mean that you will pay even more interest in the long run.
When you take out a debt consolidation loan in Florida, it can cause a temporary dip in your credit score. The lender will run what is called a “hard credit inquiry” which can lower your score by a few points. On the other hand, if you improve your financial budgeting and make all your payments on time, the result will most likely be a positive affect on your credit score.
Florida Debt Settlement
“Debt Settlement” has become an increasingly popular option in Florida.
Credit Associates, our top-rated debt resolution company in Florida, negotiates with creditors on your behalf to reduce the total amount you owe, have the creditor take a loss on the remaining debt balance, and agree to a new deal with creditors to make monthly payments over a 2 to 3 year period.
A debt settlement program in Florida will negatively affect your credit score but it will allow you avoid bankruptcy and your credit score will likely improve once you complete the program.
Your days of being taken advantage of in the Sunshine State will be over.
Some Interesting Florida Facts:
The average household income in Florida is $52,594 (national average is $60,336)
40% of the population is educated in Florida.
The GDP of Florida is over $976 billion.
The population of Florida is 20,984,400
Florida Debt Management
Debt management is a term that is also tossed around on the internet when searching for ways to get out of debt in Florida. This strategy is based on lowering the interest rate of the credit cards to make your payments more manageable.
It is a widespread belief that debt management companies in Florida, otherwise known as consumer credit counseling agencies, are non-profit organizations.
If you choose to work with a FL debt management company, you need to be sure that (1) there are no hidden fees; (2) the debt counselors are certified; (3) educational materials are free of charge; (4) they offer budgeting support; and (5) they are a member of a national credit counseling organization.
Paying Off Debt In Florida
If your debt is manageable, you can pay off your debts in monthly installments and manage the entire process on your own and from your very own home in Florida. You should keep in mind that if you can only afford to make the minimum monthly payment, you may be in for a long ride. A $2,000 credit card balance that carries an 18% annual rate can take just over 30 YEARS to pay off in you only make the 2% minimum monthly payment every month.
Be sure to put as much extra money as you possibly could towards the accounts with the highest interest rate as you pay off each credit card.
Did you know that Florida…
has more than 100 million visitors a year to its beaches, amusement parks, and cruise ships.
Florida produces about two-thirds of the oranges in the United States.
The tourism industry has enabled Florida to eliminate the personal income tax and makes it one of the most popular states for retirement.
Filing Bankruptcy in Florida
Filing bankruptcy in Florida is generally the last resort. If you are unable to pay your debts and you don’t see any other way out, you should contact a bankruptcy professional to get legal advice.
You should keep in mind that in a Florida bankruptcy, you are at risk of losing all your assets and possessions. A bankruptcy will negatively impact your credit score for the long term and it is up to the court to decide if you qualify for a Chapter 7 (entire debt wiped out) or a Chapter 13 (a percentage of the debt will be wiped out).
A Chapter 7 is the most popular method of bankrutpcy in Florida. All your debt is wiped out with the exception of tax debts, domestic support obligations, and federal student loan debt.
A Chapter 13 requires you to pay back a percentage of your debts over time. It takes longer and costs more but you have a greater chance of keeping your home with an approved payment plan.