Are you looking to get rid of multiple bills in Wyoming? If yes, then Wyoming debt consolidation can give you some relief. Consolidation is a process of merging all your bills into a single monthly payment. By consolidating your bills, you can lower interest rates and cut down your monthly payments.
Wyoming debt consolidation - Options you must know
There are 2 types of Wyoming consolidation - a consolidation loan and a program.
Wyoming consolidation loan
A Wyoming consolidation loan merges all your bills into a single loan that you make payments each month. This loan helps to lower your interest rates and monthly payments. These loans come in 2 types - secured and unsecured. Lenders offer a secured loan when you pledge collateral against it. However, unsecured loans don't require any kind of security. Learn more about unsecured consolidation loans.Wyoming consolidation program
This program lets you combine your bills into a single monthly payment. In this program, the consolidators at the consolidation company work with your creditors to lower the interest rates on your bills. This program also helps to reduce late fees and finance charges. By sticking to the program, you can repay your bills within a considerable time period. Learn more...Types of bills you can consolidate under a programs
The types of bills that can be consolidated in a Wyoming debt consolidation program are:
- Credit cards
- Utility bills
- Hospital bills
- Store cards
- Personal loans
Avg credit card debt: $5,336
Delinquency rate on (credit card): 1.24%
Mortgage debt: $176,256
Delinquency rate on (Mortgage): 1.45%
Auto loan debt: $22,655
Delinquency rate on (Auto loan): 1.16%
Unsecured personal loan debt: $13,340
Delinquency rate on
(Unsecured personal loan): 1.62%
Benefits of a Wyoming debt consolidation program and loan
The benefits of a Wyoming consolidation program and loan are given below:
- You'll not be required to file bankruptcy.
- You won't have to manage multiple bills.
- You need to make a single monthly payment instead of many.
- You may not get collection calls anymore.
Dangers of a Wyoming consolidation program and loan
The dangers of a Wyoming debt consolidation program and loan are given below:
You can still get into debt problems
If your debt load becomes bearable after you've paid a certain part of it through consolidation, it might be tempting to start using credit cards again or continuing those habits that got you into your problems. But this can get you into further debt problems.You may lose your home
If you've taken a secured loan, and you've pledged your home as collateral for a consolidation loan, then lenders can foreclose on it in the event of a default. However, if you default on an unsecured loan, your credit score may go down but your house will be safe.You may end up paying more in the long run
The interest rates on the Wyoming consolidation loans are usually lower than those on credit cards (cc). However, if you've taken out a loan that stretches over a 25 year period, you can end up paying more in interest than you would have spent on each individual loan.Wyoming debt settlement - An alternative to consolidation
If you're overwhelmed with debt and are considering bankruptcy as a way to tackle it, then you can try a Wyoming debt settlement program. This program helps to lower your payoff amount. There are various companies in Wyoming that offer this program. The settlement company representatives will open a trust account for you. You need to deposit money in this account until you've saved around half the outstanding balances. Once you have saved that amount of money, the company representatives will negotiate with your creditors to settle for less than what you owe.
An example of how settlement can benefit you
instance, you have a personal loan of $20,000, and cc bills with outstanding balances of $15,000. Hence your total outstanding balance is ($20,000 +$15,000= $35,000).
If the company representatives are able to convince the creditors to reduce 40% of the outstanding balance, then your outstanding balance will reduce to $21,000. The total amount you save = $14,000. You can figure out the amount you can save with the help of a Debt Settlement Calculator.
Risks to avoid in a Wyoming settlement program
Here are some risks you should avoid when you're paying bills in a Wyoming settlement program:
Beware of scams
There are several companies that take money from consumers without providing any services. Therefore, before getting help from a settlement company, it is essential to gather as much information as possible. The FTC has passed new debt settlement laws in 2010 to protect innocent consumers from paying huge upfront fees charged by unscrupulous companies in the business.
Your credit score will go down
Most settlement companies may ask you to stop communicating with the creditors. However, this is not legal in some states. The settlement companies actually need you to save money in a trust account opened by them. As a result, your debt amount increases due to compounding interests and late fees. This brings down your credit score.
Case study
I work with the US army and both my rent as well as utility bills are covered by government.
Currently, my objective is to rectify our behavior and save half of what we earn in a month until we retire and pay off our debts. Once we're debt free, we'll start making lucrative investments.
Now, the dilemma is whether I should sell off my car and buy a cheaper version of the same car or retain the car and make some budgetary concessions to boost savings. What I want is to pay off my credit card debt and my car loan without incurring a loss. I can't sell my car as I've spent around 11,000 on it for upgrades. What needs to be done based on my condition? I live in Jackson, WY.
One of the suitable ways to tackle credit card debt is to choose debt settlement or debt consolidation during the initial stages.
There are certain lifestyles changes that you'll have to make that will boost your savings. For example: reduce credit card purchase, use cash more frequently to make the payments, keep your home well-weatherised to reduce your energy consumption, avoid eating out as much as you can, and so on.
Next, you'll have to learn the basic skills of personal money management and plan your retirement under an expert financial planner's guidance. You can sell off your present car and buy the cheaper one as that would immediately free up some crucial amount of dollars to help you pay off your CC debt.
For retirement, you can contribute to either 401(k) or Individual Retirement Account (IRA). Still, consult a licensed financial advisor and work with him/her to create a financial strategy that caters to your needs. ss