Debt consolidation in Jacksonville could be a way for overwhelmed consumers in the city to manage their consumer debt. Undoubtedly, the pandemic had a debilitating effect on the national economy. After the fourth quarter of 2020, the national consumer debt clocked a staggering $14.56 trillion. During the same period, Americans had $756 billion in credit card debt.
While the credit card debt figure was down 9% from the previous year, perhaps due to an instinct to refrain from excessive spending during the pandemic. Yet, the loss of jobs and lack of sufficient savings meant that some consumers still relied on their credit cards for survival.
Credit Card Debt in Jacksonville, Florida
By 2021, reports showed that credit cardholders in the Sunshine State carried the seventh-highest average balance in the country. The average credit cardholder in the state owes about $7,049 on their card. The numbers are not any better for credit cardholders in Jacksonville.
Cardholders in this city carry an average of $7,031 in their credit cards. What’s more, 7.4% of credit cardholders in Jacksonville are delinquent on payments by at least 30 days. While consumers in the city carry relatively fewer credit cards (5.5) than those in other Florida cities, they have a far-too-high utilization rate (43.2%). This makes it more likely for them to hurt their credit scores.
The bad news doesn’t end there for Jacksonville consumers – the city has the highest percentage of cardholders carrying a maxed-out credit card (7.8%). These numbers indicate that some Jacksonville credit cardholders are already struggling with debt or on the verge of going down the debt hole.
Managing Credit Card Debt in Jacksonville
Once you plunge into debt, reverting to a debt-free life almost seems an unreachable goal. However, there are various ways through which credit cardholders can get debt relief. If you are seeking debt relief through a method that lets you take the driving seat, then Jacksonville consolidation could be what you are looking for.
Debt Consolidation in Jacksonville: When and How to Consolidate Debt
Debt consolidation in Jacksonville is not a one-size-fits-all solution for consumer debt. Consumers with manageable amounts of debt (about $10,000) are likely to benefit the most from consolidation. What’s more, some debts such as mortgages and student loans can’t be consolidated. As such, debt consolidation in Jacksonville is best suited to consumers with debt such as credit card debt, unsecured medical bills, personal loans, and payday loans.
Consolidating debt also works best if you have good credit. This way, you can secure low-interest loans to help you consolidate your debts.
Debt consolidation simply means combining all your consumer debts into one monthly payment. This is particularly practical for cardholders who carry balances in multiple credit cards or those with several high-interest personal loans. Consolidating multiple debts into one helps you make payments on time as you don’t have to track the payment dates for multiple bills.
How to Consolidate Debt in Jacksonville
Unlike other debt relief options, you can do debt consolidation in Jacksonville by yourself. Before you can get started, you need to crunch the numbers to come up with a budget. This helps you know your incomes, expenses, and how much you can comfortably set aside for debt repayment. Afterward, you can choose a consolidation option and begin making payments.
Debt Consolidation Options in Jacksonville, FL
If you’re looking to bundle all your bills into a single monthly payment, you can do it in various ways. Below are the most common options in Jacksonville.
Debt Consolidation Loans
Debt consolidation loans in Jacksonville are a great way of consolidating debt if you have a good credit score. Consolidation loans allow you to pay off all your debts and make payments on the loan over an extended period. Such loans come in handy for consumers with multiple high-interest bills that would take longer to settle fully.
A debt consolidation loan lender, such as a bank, credit union, or online lender, can readily offer a consolidation loan to a credit card holder who has good credit. If you have an excellent credit score, you might qualify for even lower interest rates on your loan. This way, you get to save hugely on interest charges over the repayment course.
Personal Loans for Consolidation
Loans from family and friends can also be used to consolidate multiple outstanding bills. Such loans may be easier to obtain, often come with lower or no interest, and have more favorable payment terms. Depending on your terms, you can repay these loans with no interest.
Home Equity Loans and HELOCs
Homeowners in Jacksonville who want to consolidate their debts have more than one option. By using the equity in their house, it is possible to secure a consolidation loan to settle all their debts. Since home equity loans are secured against their property, they can get large amounts with considerably low interest.
HELOCs, or home equity line of credit is a revolving line of credit from which you can take out money. These too, are secured against the equity in your home and allow you to draw money up to a preset limit. While home equity loans and HELOCs can give you access to large sums to pay off all your debts, you risk having your property foreclosed if you default on payment.
Credit Card Balance Transfer
Probably the best way credit cardholders can approach debt consolidation Jacksonville is by doing a balance transfer, which is simply moving multiple debts to another account. Consumers who carry multiple credit cards and are paying off high-interest debt can apply for a new card with a lower interest rate, preferably one that has an introductory 0% period.
A balance transfer can be a massive money-saver if you pay all your debts before the introductory period elapses. It also helps you focus on paying down a single bill, reducing the risk of skipping a payment. To get the best out of a credit card balance transfer, be sure to find out the cost of transfer and the interest that applies after the introductory period elapses.
Bottom Line
Debt consolidation in Jacksonville offers debt relief to consumers and credit cardholders who feel overwhelmed by multiple bills. Before taking on consolidation, check your credit score and draw up a budget to determine whether you have enough to make monthly payments. If you qualify for a low-interest loan from a debt consolidation company in Florida, then you can resolve your debt problems in a few years.