Times are tough in New York State. Once the economic envy of the rest of the country, New York’s unemployment rate now sits about two percentage points higher than the national average. Although the state’s median income remains high, its living standards have steadily fallen in recent years.
With one in 10 New Yorkers actively looking for work and many thousands more facing forced retirement, the state’s economy is anything but lively.
In this environment, it shouldn’t be surprising that New Yorkers are piling up debt at a rapid rate. From Long Island to Buffalo, credit card bills, medical bills and other consumer debts are acting as a major drag on the state’s economy.
New York Debt Consolidation Strategies
If you’re looking to consolidate your debts in New York, you have several different options at your disposal. Your best fit will depend on multiple factors, including the size and average effective interest rate of your total debt load.
New York Debt Consolidation Programs
Many credit counselors offer New York debt consolidation programs that can significantly lower the interest rates on your outstanding debts. Although most types of unsecured debts are eligible for consolidation using this method, credit counseling is particularly effective with high-interest credit card debts.
When you enroll in a New York credit counseling program, your counselor will take a look at your household budget and identify expenses that can be reduced or eliminated. At the same time, it will negotiate with each of your unsecured creditors in an effort to reduce the interest rates on your debts.
Ultimately, your credit counselor will work out a debt management plan that’s designed to work within the constraints of your lifestyle. Instead of paying off multiple creditors each month, you’ll make just one larger payment to your counseling agency.
New York Debt Consolidation Loans
If your debt load is on the high side, you might not find credit counseling to be terribly effective. Fortunately, many different lenders offer specially-tailored New York debt consolidation loans that may be able to wipe out your debts in one fell swoop.
Of course, your debts won’t disappear completely. Instead, your debt consolidation lender will pay off each of your creditors and begin charging you interest on your new loan. This new credit facility’s interest rate could be substantially lower than the annual premiums on your old credit card bills and business debts.
Unfortunately, most New York-based debt consolidation loan providers require their borrowers to have strong credit. If your credit score is below 600, it’s unlikely that you’d qualify for a low-interest debt consolidation loan. Even if you could find a willing lender, you might not save a great deal of money on your new loan.
Other New York Debt Consolidation Options
If you aren’t able to settle your debts using a New York debt management plan or consolidation loan, you might qualify for a targeted program of debt settlement. Unlike certain other forms of debt relief, debt settlement can reduce your existing loan principals and credit card balances by a substantial margin.
In fact, New York debt settlement is recognized as a prime alternative to bankruptcy. As soon as you enroll in one of these programs, a team of professional debt negotiators will start working to reduce your debts. They’ll talk to each of your creditors and work out a settlement that could reduce your total debt load to a fraction of what you owe.
During this time, you won’t have to worry about making any payments to your creditors. Once your New York debt settlement team has negotiated settlements on all of your bills, you’ll make a single lump-sum payment and begin a new debt-free life.
Whether you choose to work with a local credit counselor or a tough-as-nails debt settlement outfit, you could save thousands of dollars by enrolling in a New York debt consolidation plan. Get started today and prepare to face your debts once and for all.