Thanks to its vibrant energy and technology industries, Texas has experienced something of an economic boom in recent years. Relative to the nation as a whole, the state appears to be doing quite well: At around 6 percent, its unemployment rate is lower than the national average.
As thousands of folks stream into the state from harder-hit parts of the country, Texas’s population is growing quickly. This growth has fueled a construction boom that provides additional economic support in places like Dallas, Houston and San Antonio.
Unfortunately, Texas has seen its share of economic struggles as well. The state’s median income is over $2,000 below the national average. Meanwhile, nearly one in five Texan families lives in poverty. That’s far higher than the national benchmark of 14 percent.
Amid this mixed economic picture, many struggling Texan families have accumulated unsustainable levels of consumer debt. From high-interest credit card bills to ballooning medical bills, these unsecured debts have the potential to cause serious financial consequences.
Texas Debt Consolidation Options
If you’re struggling with multiple credit card debts, medical bills or other consumer debts, you need to take charge of your financial situation right away. When it comes to reducing debt and setting up a fresh fiscal start, every day counts. Fortunately, there are several tried-and-true Texas debt consolidation options.
Texas Debt Consolidation Plan
If you’re tired of paying off multiple creditors without making much of a dent in your loan balances, you should consider retaining a Texas debt consolidation expert to negotiate on your behalf. Whether you’re fending off calls from several different collections agencies or accruing penalty interest and fees at a rapid rate, you’re probably sick of your complex burden of debt.
With the help of a credit counselor or personal-finance planner, you can radically simplify your situation. Your counselor will negotiate interest-rate reductions on your behalf and may even be able to wipe away some of your accrued penalty fees. Instead of making 10 or more debt payments each month, you’ll need to worry about making just one easy-to-remember payment to your Texas debt consolidation organization.
Debt Management in Texas
Your credit counselor might also draw up a debt management plan for you. This will involve a combination of negotiated interest-rate reductions and a personalized budgeting plan that enables you to live within your means.
Depending upon the specifics of your debt management plan, this move could cut your interest rates in half. In theory, such a reduction would provide you with some much-needed budgetary breathing room and help you remain current on your mortgage payments, auto loans and other secured obligations.
Unfortunately, debt management plans often stretch out these re-negotiated interest payments for seven years or more. If you’d like to get rid of your debts more quickly, you might need to find a Texas debt consolidation alternative.
Texas Debt Consolidation Loan
Debt consolidation loans may be able to help. If you have a debt burden of $10,000 or more, you might qualify for a loan that pays off your current obligations and bundles your debts into a single long-term credit facility. Texas debt consolidation loans have reduced thousands of borrowers’ effective interest rates.
Finding a consolidation loan can be tricky. If you don’t have a strong credit profile, lenders might be wary of trusting you with such a large credit facility. It’s important to note that defaulting on a consolidation loan will make it far more difficult for you to find affordable credit in the future. If you worry about your ability to handle such a loan, you might wish to consider a program of debt negotiation.
Texas Debt Negotiation
Also known as debt settlement in Texas, debt negotiation is a powerful process that could reduce your overall debt balances by a substantial margin. In fact, debt settlement is often touted as the best alternative to bankruptcy in Texas.
When you sign up for a debt negotiation plan, you’ll stop making payments on your outstanding debts. Meanwhile, a debt settlement expert will begin negotiating reductions to the principal balances on your outstanding debts. Although every situation is different, this could reduce your total debt load to a fraction of what you owe.
Although debt settlement can have a negative effect on your credit, it’s regarded as a “gentler” alternative to bankruptcy. It may also take just two to four years.
Take control of your financial future and consolidate your debts in Texas today. Whether you choose to enroll in a program of credit counseling or debt negotiation, your decision is sure to pay off in the long run.