Massachusetts Debt Relief: Debt Settlement and Consolidation

Massachusetts residents have some of the highest incomes in the country, which most people living in the state can manage their debt and pay down their credit card balances. They also have the second-highest average credit card score in the country. This shows they are fiscally responsible and paying their debt on time.

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However, mortgage debt is much higher in Massachusetts than in other states. Credit card debt and student loans though are much lower. Debt settlement and consolidation can help you if you are struggling with debt and need low-interest rates.

Debt Relief Options

Debt Settlement

Debt settlement can be risky and will take some time. Many debt settlement programs will make you have 36 months of savings or more so that you are adequately able to settle all your debts.

A company will negotiate with your creditors to get you a settlement to pay and resolve your debt. Therefore, the program will ask you to set aside money each month to prove you are saving money to pay the settlement. During this time, you will stop making monthly payments to your creditors.

Debt Consolidation

This often involves taking out a personal loan with a low-interest rate. The better your credit score, the lower the interest rate you can get. The personal loan is used to pay off your credit card balances and then you will make the monthly loan payments back in a smaller payment.

Remember for this to work, you have to stop using your credit cards only use them for an amount you know you can pay back in full at the end of the month.

Debt Management

Debt management will require more discipline. You will need to create a budget that fits your income and see where you can save money and cut excessive spending. Companies that specialize in debt management can help you create a plan and a budget.

Debt management will allow you to make high payments on your credit cards each month rather than just the minimum payment. This will allow you to pay off the balance early and not be affected as much by high interest rates.

Consumer Debt Counselors

Debt counselors can help you with debt management and budgeting. They can also show you debt settlement and consolidation options. Working with a counselor makes the process much easier because they are experienced professionals. They can also look at your situation from a new perspective and decide which method would be the most beneficial to you.

Consumer Debt in Massachusetts

Credit card balances in Massachusetts are high, but the payments are a low amount compared to the incomes that people are receiving. The median household income is about $62,072 which is the sixth-highest in the country. Most residents have average amounts of debt and there are a limited number of bankruptcies and foreclosures.

Credit Card Debt in Massachusetts

Throughout 2010 and 2011, The United States brought its credit card debt down 17% and the states of Massachusetts brought their credit card debt down 18%.

Statute Of Limitations for Massachusetts Credit Card Debt

The Statute of Limitations in Massachusetts for credit card debt is 6 years. This is average compared to most states. After 6 years, a creditor cannot sue you or come after you for the debt that you owe. This only applies to credit card debt. Auto loan debt has a limitation of 4 years and mortgage debt has a statute of limitations of 20 years. It starts from the day you made the most recent payment.

Mortgage Debt in Massachusetts

Mortgage debt in Massachusetts averages about $50,230 compared to the national average of $36,730. You can see that residents of Massachusetts have considerably higher mortgage debt than the rest of the country.

Student Loan Debt in Massachusetts

The average balance for student loan debt in America is $5,730 and in Massachusetts, residents average about $6,190. While the loan debt in Massachusetts is higher, the high incomes and high college graduate rates make the amount manageable for most people.

However, coupled with a high mortgage rate, student loans can become too much debt for one person to handle.

Auto Debt

Auto debt in Massachusetts averages about $3,920 and nationwide it is $5,000. While Massachusetts does have higher debt amounts in other areas, they score on the lower end of auto loan debt.

FAQ's About Massachusetts Debt Relief:

How does a debt relief program affect your credit?

The debt relief program you choose will all affect your credit differently. Some programs will minimally affect your credit, while others can affect your credit score for years and years to come. If you are worried about your credit, use a personal loan or debt consolidation.

Debt settlement will affect your credit the most because it will send all your debt to a collector. Scores sometimes completely tank if there are several debt collectors after you.

Is there really a debt relief program for me?

Every debt is unique, and every debt relief program is also unique. A debt relief program should be tailored to your needs and situation. No matter your debt amount, credit score, or income, there is a debt relief program for you.

Consolidation might be better if you have a stable income and need to pay down credit cards. Settlement is better for large amounts that you can put away savings for. Settlements can be used even if your debt has been with a collector for several years. Management would be the most beneficial if you have low debt and are making enough money to budget and make payments higher than the minimum.

Get Debt Relief in Massachusetts Today

TurboDebt offers debt relief easily and confidentially. They offer free online consultations to get you started. They are committed to helping you change your financial situation through advising, consulting, and strategic planning.

The goal is to always break the cycle of debt and make a plan to become debt-free in the shortest amount of time. Once you are debt-free, you will be stress-free.

How Much Do You Owe?

Select your debt amount:

How Much Do You Owe?

Select your debt amount:

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