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Vermont debt relief

If you reside in Vermont and you’re carrying in excess of $10,000 in unsecured debt, you need to start paying off what you owe at once. Working with a debt expert has several benefits, but it’s vital to research the best path to take.

Debt Consolidation in Vermont

We match people with debt consolidation professionals who can help them:

  • Lower their payment amounts
  • Minimize their interest rates
  • Limit creditor messages or calls

Typically, Vermont debt consolidation means signing up for a debt management program. Your debt specialist will negotiate more favorable rates and terms from your creditors. Are you ready to get rid of debt? Find a debt consolidation consultant near you. It’s free!

Debt Consolidation Saint Johnsbury VT

Credit Counseling in Vermont

Credit counseling professionals speak to lenders and creditors directly, often getting you discounted rates. You will not have to take out a new loan, your credit score should not drop, and the calls from your creditors should stop coming. Even better, you should just have one major payment to make on a monthly basis–an amount that won’t break the bank. Credit counseling has several pluses:

  • Credit remains undamaged.
  • No chance of home foreclosure.
  • Credit counselor deals with debt collectors.

Do you owe at least $10K of medical or credit card debt or have a debt-to-income ratio of 50% or higher? If so, you might need to register for a debt management plan (DMP). Why sign up for a debt management plan? Because you might take advantage of:

  • More Affordable Interest Rates
  • Fewer Debt Collection Agency Telephone Calls
  • Single Monthly Repayment
  • Faster Debt Relief

If you enroll in any debt management plan in VT, the credit counseling service will manage paying the credit card companies every month. Pretty much all you’ll need to do is give them one single payment amount.

Settling Debt in Vermont

It’s better for your credit to pay off everything owed, but as a last measure you can negotiate for a lesser amount.

Wondering why lenders would agree to a lesser amount? Because it often helps a borrower steer clear of going bankrupt. In this way, they obtain at least a share of the amount owed them. Negotiating your debts in this fashion has a number of disadvantages:

  • Bad for your credit rating.
  • Debt not completely repaid.
  • Creditors don’t always agree to negotiation.
  • Debt continues to mount while debt reduction is being discussed.
  • Calls from collectors may not decrease.
  • Debt that’s forgiven may be taxed.
  • Takes half a year before settlement is approved

Settling vs Consolidating Debt

Both debt settlement and management give you a consolidated payment amount, but the similarities stop there. Almost all debt management programs give you lower interest levels for your credit cards, but no debt forgiveness is involved. When it comes to debt management, consolidation, and counseling, your monthly payment is consolidated, but you still pay off your creditors until your debt is paid in full. There’s no doubt that this is better for your credit rating. However, the only debt savings are derived from reduced interest levels and fees.

Saint Johnsbury VT Debt Relief

Credit Card Debt Among VT Residents

Credit card debt is rampant throughout the US, and Vermont–though enjoying one of the highest average credit scores in the county–is no exception. The average borrower has nearly $5000 in credit card debt. This is 34th in the nation, though the state has a relatively average income.

  • Income per capita:  $29,167
  • Credit card debt per borrower:  $4693
  • Credit card debt rank:  34th

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