Emergency Debt Relief Texas
Texas is the second very populated and economically diverse state in the US. Its population is more than 29 million, and its economy is bigger than many other countries. Undoubtedly, the Lone Star state is a force to be calculated with. However, it is also a fact that only some things are beautiful in Texas State. Just like several other states, it also hits very hard by the economic downturn.
It has led to much-enlarged debt levels for several Texas residents. It is not surprising that several residents of Texas are struggling very hard to make ends meet. Fortunately, many programs are available for people who want help to get out of debt. This article will teach you about some of the most popular emergency debt relief Texas programs from the Best Debt Relief Companies.
Debt Statistics in Texas:
Texas continues to draw people in with its low cost of living and lack of income tax, but even with these great benefits, residents and Texas were heavily affected by the pandemic. An average income is $ 54,841 per person in Texas, short of the national average of $59,729. Moreover, residents of Texas have an average household income of $61,874, and the minimum wage of Texans is equal to the federal lowest wage of $7.25 per hour. Unfortunately, it is an employment-at-will state. Employees should be terminated at any time and for any reason.
Consequently, not the employer nor the worker assures that they uphold employment. In 202, this state also maintained a below-average unemployment rate of almost 6.5%. In addition, by September 2021, this will drop down to 5.6%, which has 2.2 points lower as compared to the national average. Texas and its residents were heavily affected by the pandemic and hit by major extreme weather events. There are many different types of debt relief available for the residents.
Ways to Get Debt Relief Program in Texas:
The government of Texas wants to provide help for the financial troubles of its residents. So, they provide multiple debt relief programs in Texas, which help them to get a fresh start. Here are some of the most common ways to get debt relief in Texas.
Debt Management:
This program helps cut down the interest rate on your credit card debt to around 8%. It will also let you pay off all the dent in 3 to 5 years. However, the average interest rate on the credit card is 16.7%, but if you miss the payment, it increases to 20% – 25%. So, if you owe $5000 on your credit cards and lower the interest rate from 25% to 8%, your monthly payment decreases from $105 to $33 per month. In addition, it is $72 per month that you can utilize to pay your debt faster.
Credit Counseling:
It is another one of the most popular emergency debt relief Texas programs. Credit counseling can help you understand your rights and responsibilities under the law, build your budget, and negotiate with creditors.
Debt Settlement:
It is a negotiated program with your creditor. Debt settlement allows you to pay lower than you owe. However, the lender decides whether or not to agree to this plan. It means accepting lower than what you owe. The procedure is lengthy and arduous, and the savings are rarely as high as per agreement.
Debt Consolidation:
The average credit card debt in Texas is $5,308. The number seems to increase in a post-pandemic world. Although the major concern is the reliance on credit cards is rising while inflation and other economic crises appear to be cemented in 2022. This one of the most famous emergency debt relief Texas programs allows you to get another loan. You can use this loan amount to pay off your existing loans. It will help you consolidate all your loans into one monthly payment.
Bankruptcy:
It is the last thing you can do, but it is an essential choice in a few cases. Bankruptcy is a legal process that declares that you cannot pay your debt in court. There are two types of bankruptcy. In Chapter 7, you discharge your debts in exchange for giving up your nonexempt property. On the other hand, in Chapter 13, you get an opportunity to repay your debts over time through a court-approved repayment plan.
Conclusion:
The living standard in Texas is very high, making it difficult for its residents to go ahead financially. However, some specific emergency debt relief Texas programs will help them.
