As a state, Texas is better rated economic-wise than many countries across the world. The state prides itself on a population of over 29 million residents and is renowned for its diverse economy.
Texas also imposes no income tax and it’s associated with a low cost of living.
However, just like every other US state, Texas suffered heavily from the novel COVID-19 pandemic. Together with the devastating effects of Hurricane Harvey and the extreme winter of 2021, the state suffered significant setbacks.
These challenges led to a steep rise in credit card debts. Currently, the Lone Star state ranks sixth on the credit card debt balances list in the US, with a staggering average of $5,848. With the financial difficulties, many Texans now find themselves stuck with huge debts that they can’t manage.
In this Texas Debt relief guide, we’ll offer Texas debt relief programs that are crucial in overcoming debts.
Common Types of Debts in Texas
The leading categories of debts in Texas include but are not limited to:
- Credit Card Debts
- Mortgage Debt
- Student Loan Debts
- Medical Debts
- Auto Loan Debts
- …and more
Texans vs Texas Debt Relief Programs
Many people are struggling with debts in the US. For most, Texans included, filing for bankruptcy is always the last option of debt relief strategy. The good news is other exclusive Texas debt relief programs can come in handy in helping such people navigate through rough financial patches.
Some of the debt relief procedures involved include but are not limited to consolidating debts into a single loan and negotiating with creditors. However, it’s important to note that enrolling in a debt relief program doesn’t mean you’ll pay less than what you owe. The process only streamlines the repayment process.
Is Debt Consolidation Loan Process the Right Way for Texans to Go?
Debt consolidation is one of the most effective methods of overcoming debts and stabilizing your financial ground. This involves a refinancing option that involves securing one loan to pay off all the other debts.
Paying a single debt is easier and comes with elevated peace of mind than paying different debts, with different creditors, and with different monthly deadlines. However, before consolidating multiple debt accounts to a single loan, you should consider if you’d pay lower interest than when paying each debt individually. On the brighter side, getting a lower interest rate on a consolidated loan is not a problem for people with good credit scores.
Another factor to consider when opting for the aforementioned option is whether you’ll be able to get better repayment terms than when dealing with multiple debt accounts. After all, the ultimate goal of consolidating your debts is to mitigate the hassle associated with the repayment process. The good news is that if you’re in Texas, Freedom Debt Relief is always ready to offer customized debt consolidation advice for Texans. You can always reach out at 800-910-0065 to talk to our professional debt consultant experts to get started on a pathway out of debt.
Bankruptcy Debt Relief Program
While filing for bankruptcy comes with a significant share of detrimental consequences, it can provide relief from overwhelming debts. Nevertheless, make sure you understand the aftermath of the undertaking.
And in Texas, just like every other US state, filing for bankruptcy is a federal law rather than a state law. When you embark on the process, the federal government determines what property you’ll keep. But on the bright side, bankruptcy wipe bills like, overdue utility bills, credit card debts, personal loans, auto loans, and more.
With that in mind, this Texas debt relief guide provides some useful insights on how to overcome overwhelming debt in the state, during these hard financial times. The guide explores ways in which the resident of the Lone Star state can beat debt without suffering from serious financial repercussions. To learn more, contact us today!