In North Carolina, the per capita income climbed 73% from 2010-2019. The percentage of North Carolina residents with high school diplomas and college degrees has also risen. However, despite this good news, the per capita income, and the percent of people with bachelor’s degrees in North Carolina is significantly less than other states in the nation.
With lower-income and the cost of living constantly rising, the debt for the average North Carolinian has risen over the last few years. With a high debt to income ratio, debt relief options should be discussed. Debt settlement and consolidation can help you manage your debt and get your finances back on track.
Debt settlement allows you to pay less than the total amount you actually owe. A company will work with creditors to reach a settlement amount for you. If you face crippling debt, this could be the option for you.
However, it is riskier than other options. It will stay on your credit report for 7 years and you will have a low score for the duration of the years.
This could be the best option if you have a high credit score and want to take out a personal loan to cover the existing debt. Ideally, you will get a loan that has a lower interest rate than your current credit cards.
You will still need to make the monthly payment on your credit card, but it will be lower than what you pay on your credit cards.
Debt management can be done in a DIY style, or you can work with a company. It involves you setting a strict budget and deciding how to better manage your money and bills. You will be able to see ways that you can limit spending and try to make larger payments on your credit cards than the minimum due.
A consumer debt counselor can help consult your creditors to see if they can get lower interest rates for you. They will also be able to look over your options and recommend the best ones based on your situation. In some cases, they can even get your interest rates cut by half, saving you ample money as the years' pass.
The total consumer debt in America is around $4.2 trillion. The average resident in North Carolina is $48,480 in debt including mortgage, auto loans, student loans, credit cards, and other personal loans.
Credit card debt in North Carolina is usually around $2,810 which is close to the national average of $2,780. However, credit card interest rates in North Carolina are between 17 percent to 25 percent.
If you have $8,600 credit card debt and pay only the minimum, it could take you over 15 months to pay off the balance with an average interest rate. This could be a financial burden if you are trying to save money.
The statute of limitations in North Carolina for debt is 3 years. This is the lowest in the nation and much less than the national average as some states even have a statute of limitations that is 20 years.
After 3 years, a creditor or lender will not be able to take legal actions against you for debts that you owe.
The average debt in North Carolina households with mortgages is $154,183. Also, 0.89% of North Carolina homeowners were delinquent on mortgage payments. This was before the start of the COVID pandemic, so this number is expected to seriously grow.
The average mortgage debt in North Carolina is around $31,620 which is less than the national average of $36,730.
On average in 2020, North Carolina residents owed around $37,500 in student loans. Around 1.2 million college graduates in North Carolina are still trying to pay off their student loan debts.
North Carolinians have the 20th highest amount of auto loan debt in the country. Most residents have an average of $19,778 in vehicle debt according to Experian. Those aged 40-49 have the highest auto debt of all the age groups.
Each debt relief option will affect your credit score differently. Settlements will give you a negative credit score for several years and take the longest to recover from. This is because it involves you not paying your creditors and defaulting on your payments while a settlement is reached.
Debt consolidation usually means taking out a personal loan which can negatively affect your credit score for a few months to a year. Each time you take out a loan or credit card, it will negatively affect your credit. However, paying down your credit card balances will positively affect your score.
No matter your debt amount or situation, there is a relief program that will work for you. It’s important that you find a company and counselor that will work with you to find the best one. Debt management is ideal if you have low amounts of debt and a steady income as it will affect your credit the least.
Debt settlement is better in situations where people may be facing crippling debt. No matter what you choose, make sure you can make the payments on time and try to get a very low-interest rate.
Here at TurboDebt we can help you find the best debt relief option by using effective strategies and low-cost solutions. We understand that debt is not one size fits all, and are committed to finding you a solution that is best for your personal situation.