Debt Consolidation Loan Programs in Sacramento


DebtConsolidationsacramento: Make your family debt free today!

the cost of debt consolidationWith a Debt Consolidation Loan from a Sacramento service,  you are able to make one payment to just one lender instead of making many payments to multiple creditors. Debt consolidation loans ought to provide a fixed interest rate, one that is lower than what you were paying on your other bills. In this way you can reduce your monthly payments, making it easier to repay your debts. The multiple kinds of Sacramento Debt Consolidation Loans available include personal loans, student loan consolidation, home equity loans and credit card balance transfers.

Credit card debt is very easy to rack up quickly but can be difficult to get rid of. High amounts of credit card debt can lower the value of your financial portfolio, lower your credit score and make banking institutions take an extra look at you when asking for a loan. And this is on top of the high interest rates you have to make payments on per month, which makes it harder and harder to cut into your actual debt. On just $20,000 worth of credit card debt at 20% interest you can end up paying thousands of dollars per year in just interest! Because of this, many of your payments are only going straight to your interest payment and not into your the actual balance, just turning your credit card debt into a vicious circle. Here are 10 steps to help you get out of this vicious circle fast.

How Much Debt Do You Have?

The first thing you absolutely need to know before you get into paying down your debts is to figure out exactly how much debt you currently owe. Find out the exact number of any debts you might have from your credit cards. This number may be shocking at first, but the more you work at and the more your debt goes down, the more you’ll look forward to seeing your progress at the end of each month. Once you clearly know exactly how much debt you have, you can start decreasing your debt.

Getting a Sacramento debt consolidation loan can certainly help those who have too many credit cards to manage and too much debt in total. This would mean that the bank would give you a loan for the amount of credit card that you have and you would use that money to pay off the debt and then make easy payments on your consolidation instead. This tends to work out well since the consolidation loan has a much lower interest rate than your credit cards and working on one debt can be easier to manage than multiple debts at multiple interest rates.

In Nerd Wallet’s 2015 American Household Credit Card Debt Study, the average U.S household holds $130,922 of debt with nearly $16k of that for credit cards. mortgages, auto loans, student loans, and other forms of debt. Here’s a breakdown of the debts of the average American household as of the fourth quarter of 2015.

American Consumer Debt By the Numbers

  • Credit Card:  $15,762
  • Mortgages: $168,614
  • Auto Loans: $27,141
  • Student Loans: $48,172

One reason consumer debt has increased is because cost of living increases have surpassed income growth over the past twelve years. Despite the fact that median household income has increased 26% since 2003, it is no match for household expense hikes. Medical costs have grown by 51% with food and beverage costs growing by 37% in the same time frame.

The average US (Sacramento included), household pays $6,658 in interest on their debt every year. That means that the cost of debt interest alone is  9% of the average $75k household income. The above interest is based on nearly $126,000 average debt load. That is an astonishing 167% of the average household income!

If you are ready to consolidate your debt into one easy payment…. give us a call.



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