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.
Two Primary Categories of Debt
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.
National Household Debt Statistics at Year-end 2017
Economists and statisticians compile data related to the various forms of unsecured and secured debt on a national (and statewide) basis to generate an overall sense of the economy and economic well-being of the American consumer. According to the Federal Reserve Bank of New York, at the end of 2017, total household debt in the United States had increased $193 billion sequentially, an increase of 1.5%, to a record $13.15 trillion. Source
This marked the 14th consecutive quarter of sequential increases while placing aggregate household debt 17.9% above the recent low set in Q2 2013. The record level was led by substantial growth in mortgage balances, the largest component of household debt, which now stand at $8.88 trillion, an increase of $139 billion from Q3 2017. Meantime, credit card debt increased by $26 billion, a 3.2% sequential increase, to $834 billion. Auto loans grew by $8 billion and now total $1.22 trillion nationwide, with 4.1% of auto loan balances delinquent at year-end. Finally, aggregate student loan debt now stands at $1.38 trillion, with 11% of that figure showing as delinquent or in default.
Debt Relief In America By States
Are you in debt? we can help
Handling my business debt was not something I looked forward to
Handling my business debt was not something I looked forward to. But United Settlement was so patient with my questions and helped me figure out how to handle my debt as a small business owner. I qualified...
I didn't even know what type of interest rates there were and how those affected my debt overall
When I contacted United Settlement, I didn't even know what type of interest rates there were and how those affected my debt overall. So, when I went to go buy a new house, I was shocked to find out that...
Debt settlement is what we signed up for when we were interested in using United Settlement
Debt settlement is what we signed up for when we were interested in using United Settlement. We needed a company to negotiate on our behalf to help us reduce the total amount of debt we owed, and we were...
I had no idea that I could lower my credit card interest rates. But when I contacted United Settlement, they explained to me that I could negotiate my interest rates down lower along with my payoff balance....
If you have ever had an unmanageable amount of credit card debt
If you have ever had an unmanageable amount of credit card debt, you know how ridiculous it is to try to pay it off. In my situation, I did not want to wait until the last moment to get this debt under...
Medical debt is damaging to your long-term credit
Medical debt is damaging to your long-term credit. That is what we were dedicated to managing our debt as soon as we got our medical bills from an unexpected surgery that our insurance did not cover. I...
Finding a good alternative to business debt relief is far from easy
Finding a good alternative to business debt relief is far from easy. As a company, we have spent years trying to find a good solution to our business’ debt, because if we can get it out of the way we...
I had no clue that a debt consulting company could provide guidance
I had no clue that a debt consulting company could provide guidance and what type of loans you should take out. I was thrilled by the communication I had with United Settlement. They did not hesitate to...
Buying a new vehicle should not stress you out to the point that you cry every night to go to sleep
Buying a new vehicle should not stress you out to the point that you cry every night to go to sleep. But that was the point I was at before I contacted United Settlement. These guys were professionals at...
I knew I needed to file bankruptcy before I even contacted the team at United Settlement
I knew I needed to file bankruptcy before I even contacted the team at United Settlement. My biggest issue was how to file and also what type of bankruptcy I should file. A lot of people do not know that...
Who would have thought that auto loan debt can take such a toll on a family
Who would have thought that auto loan debt can take such a toll on a family? Well, we discovered how that could happen when our family bought two new vehicles. We thought we could afford the payments, but...
Why go bankrupt when you do not have to?
Why go bankrupt when you do not have to? That was my thinking when I decided to hire United Settlement. I wanted them to help me get out from underneath my credit card and auto loan debt. They were very...
Who knew that you could get credit card debt relief
Who knew that you could get credit card debt relief just by reaching out to a credit card consolidation company? I did not. But I had a friend recommend United Settlement to help me get through my debt...
We had a revolving credit card debt that just wouldn’t quit
We had a revolving credit card debt that just wouldn’t quit. This in turn made it difficult to try to buy a house. Our credit card debt literally held us back from moving forward in life. But our goal...
There comes a time when you realize you need help with your debt consolidation
There comes a time when you realize you need help with your debt consolidation. And that time came for me last year. I contacted United Settlement to help me manage my debt issues. They were friendly and...
Small business loan debt was crippling our company.
Small business loan debt was crippling our company. We have spent many years building our business, but we had to take out several loans to get through a slow period. Fortunately, those loans helped, but...
If you have ever run a business before, you know how quickly you can get into debt
If you have ever run a business before, you know how quickly you can get into debt. That’s right, you can be trying to live your best life and end up in a situation you cannot get yourself out of. That...
Our credit card interest rates were astronomical
Our credit card debt was not really that bad, but our credit card interest rates were astronomical, which meant we could not get out from under our debt as quickly as we would have liked. We used United...
I had no idea that I would qualify for business debt consolidation loans
I had no idea that I would qualify for business debt consolidation loans. But United Settlement walked me through what that process was like and gave me insight into how to manage my future debt so that...
The last thing I wanted to do is file for business bankruptcy
The last thing I wanted to do is file for business bankruptcy, but that was before I knew how common it was and how little it actually affected my personal credit. United Settlement informed me of that...
Household Debt - The Top Ten States
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.
Household Debt Problem? United Settlement Can Help!
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.