Debt Relief In America

Consumer debt runs rampant in America, and though it does provide necessary fuel to the American economy, it also leads many individuals down the road toward financial difficulty. Debt is one of the leading contributors to divorce in America and forces many Americans to live from paycheck to paycheck.

Sometimes a consumer falls prey to overspending and gets blindsided by an exogenous event – such as a job loss or medical emergency. There are many ways that excessive consumer debt can lead to financial hardship that often lasts years and alters life trajectories. But, debt does not have to define your financial livelihood. There are numerous forms of debt relief in America that are suitable for different debt circumstances.

There are two primary categories into which debt can be divided – unsecured debt and secured debt. With unsecured debt, the amount borrowed is not backed by collateral that can potentially be seized in the event of non-payment by the debtor. The most common forms of unsecured debt are credit card debt, medical bills, student loans and personal/installment loans.

In contrast, secured debt is backed by collateral that can be seized and sold by the creditor in the event of non-payment by the borrower. The most common forms of secured debt are home mortgages, home equity loans, and auto loans. Because secured debt is backed by collateral, creditors will often loan larger amounts at lower interest rates and more favorable terms than are offered in situations involving unsecured debt.

Please note that the following figures are for ALL households in a given state or region. (For example – Mortgage debt averages include those households with zero mortgage debt, as well) The national average for household debt is $48,800, of which mortgage debt represents $32,940. All figures are culled from quarterly data compiled by the New York Federal Reserve.

1) Though technically not a state, Washington D.C. tops the list with average household debt of $84,380, driven by nationwide leading mortgage debt for all households (including non-mortgage borrowers) of $62,080. These figures are 73% and 88% above the national averages, respectively.

2) Hawaii checks in at #2, with household debt of $71,170, of which 54,680 is mortgage debt. These figures are 46% and 66% above the national averages, respectively. With an average FICO score of 691, Hawaii is the runner-up in that category on this list.

3) California comes next, just below Hawaii, with household debt of $70,100, of which $54,640 is mortgage debt. These figures are 44% and 66% above the national averages, respectively.

4) Checking in next is Maryland, with household debt of $70,010, of which $50,900 is mortgage debt. Maryland also has a higher than average household credit card debt level of $3,780, 22% higher than the nationwide individual state figure of $3,100.

5) Colorado comes next at $68,450, with above-average levels of mortgage debt and credit card debt, at $50,900 and $3,530, respectively.

6) Next comes Virginia, at $65,050, who also show above-average levels of mortgage debt and credit card debt, at $47,370 and $3,760, respectively.

7) Massachusetts places seventh, at $63,070, of which $45,760 is mortgage debt. These figures are 29% and 39% above the national averages, respectively. With an average FICO score of 694, Massachusetts takes top honors in that category on this list.

8) Washington State places eighth, at $62,560, of which $47,110 is mortgage debt. These figures are 28% and 43% above the national averages, respectively.

9) Connecticut places ninth, at $58,860, of which $41,790 is mortgage debt, the second lowest figure on this list. These figures are 21% and 27% above the national averages, while the state’s average household credit card debt of $3,730 is 20% above the national average of $3,100.

10) Alaska completes the Top Ten, with average household debt of $57,850, of which $41,580 represents mortgage debt. These figures are 19% and 26% above the national averages, respectively.

At United Settlement, we can help you get your household debt under control. In an initial 30-45 minute phone interview session, one of our experienced debt counselors will ask questions relative to your income, expenses and debts, and discuss solutions specific to your household debt situation. Among the more common solutions available is the Debt Management Plan (DMP), which involves streamlining multiple credit card payments into one simple monthly payment.

Included in the advantages of enrolling in a DMP are lower interest rates and a lower overall monthly payment. However, if you’re already delinquent on some credit card accounts, Debt Settlement may be the better option for you, as it can result in creditors accepting lower balance payoffs. Or, if you have a variety of different creditors beyond unsecured credit card debt, a Debt Consolidation Loan can pay off many of your creditors while also resulting in a lower blended monthly interest rate and payment.

Contact us here at United Settlement 888-574-5454 to discuss these available options and get going toward alleviating your household debt problem.