- Reduce their payments
- Reduce their interest
- Limit debt collector calls
There are two distinct types of debt consolidation strategies: some involve loans, some do not. Either way, you need to have a stable income source to benefit from debt consolidation in Utah. To understand which type is best for you, talk to a certified Utah debt professional.
Debt Management Plans (DMP): Utah
The most common form of debt consolidation in Utah involves managing debt through a customized DMP.
This DMP has many plus points:
- Single Payment Per Month
- Lowered Interest
- Waived Extra Fees
On top of that, this is one of the cheapest ways to consolidate debt in Utah. Signing up should cost under $70, and fees each month $25-40.
UT Debt Consolidation Loans
A debt consolidation loan should help to reduce your financial outlay in the long run simply because unsecured loans and home equity loans ordinarily come with less expensive APR’s than credit cards. The many payments you were making to various creditors will be superceded by one easy payment each month, your loan payment.
If you opt for a loan that’s backed by some of form of equity, there may be a positive impact at tax time. Unfortunately, if you fail to make the payments on a loan like this, you could lose your property. Is a debt consolidation loan right for you?
Debt Evaluation: Utah
Have you figured out how much credit debt you have?
Ideally, approximately 36% of your income will be devoted to paying back what you owe. These debts include everything you owe, whether secured or not:
- Credit Cards
- All Loans
- Home Loan Payments
If you earn $3,088 a month, which is the average for someone who lives in UT, then, preferably, you would spend around $1,112 monthly. Unfortunately, lots of Utah residents are carrying considerable debt, classified as a debt to income ratio (DTI) of 50% or higher. They’re spending more than $1,575 each month!
Do you have more than $10K in credit debt? Then you really should talk with a debt consolidation professional near you.
Debt Consolidation Standards in (UT)
As outlined by the FTC, any Utah debt consolidation consultant must:
- Explain their fee scheme.
- Explain to you how long before they contact each creditor.
- Inform you how much has to be saved before they will speak to each creditor.
- Clarify any and all risk for your credit score.
For additional information, review the FTC rules of thumb.
Alternative Methods of Debt Relief in Utah
Utah credit counseling programs can help people create a long term course of action for trimming debt and repairing credit ratings.
For residents of UT, debt settlement is an increasingly popular way of getting out of debt.
Utah Debt Statistics
- Income Yearly: $37,054
- Debt Per Capita: $1,770
- Overall Debt Rank: 32
- Credit Rating: 683
- Bankruptcies: 18,048
Click here to find out more about debt consolidation in your part of Utah.