Consumer debt is high in New York, especially when it comes to student loans, mortgages and credit card balances, leading many to consider New York debt relief companies as a way to get out from under creditors.
CALL NOW FOR YOUR FREE CONSULTATION AT 866-376-9846.
Despite the fact that New York residents seem to have better financial health than those in other states, they still have high levels of consumer debt, mostly due to a high-cost housing market and a high level of student loans in the state. However, New York offers many consumer-friendly laws to protect assets.
New York Debt Statistics
The following statistics give some insight into the debt picture of many New Yorkers, as well as the reasons consumers may want to contact a New York debt relief company:
- Unemployment Rate: As of August 2013, New York had an unemployment rate of 7.6 percent, slightly higher than the national rate of 7.3 percent. (http://www.data.bls.gov/timeseries/lasst36000003)
- Poverty Level: The poverty rate in New York, according to a 2007 Census Bureau report was 13.7, lower than the national average of 15.9 percent. This report ranked New York 18th among all 50 states regarding the number of people living below the poverty level. (http://www.census.gov/statab/ranks/rank34.html)
- Student Loan Debt: New Yorkers had an average student loan debt of $25,851, ranking 19th among the 50 states. However, 60 percent of students leaving college who were residents of New York were carrying student loan debt, ranking it 25th among other states. (http://projectonstudentdebt.org/state_by_state-data.php)
- Credit Card Debt: In 2011, New Yorkers had an average credit card debt of $5,900, which was lower than the national average of $6,600. Statistics show that New Yorkers often fall lower than the national average for credit card debt. (http://www.debt.org/faqs/americans-in-debt/consumer-new-york)
- Bankruptcy: Bankruptcy filings in New York dropped between 2011 and 2012 across both judicial districts. The Northern District had 13.4 percent fewer filings, while the Western District had 12.6 percent fewer. (http://www.uscourts.gov/statistics/bankruptcystatistics/interactive-map.aspx)
All of these statistics show that, although New Yorkers seem to be in a slightly better financial situation than residents of other states, consumers often need the services of a New York debt relief company.
New York Debt Consolidation
In New York, debt consolidation consists of credit counselors working with creditors through the process to lower interest rates and create lower, consolidated monthly payments that are more affordable for the consumer. With more manageable payments consumers have more disposable income for savings or retirement. In addition, because interest rates are reduced when a consumer works with a New York debt consolidation company, they are able to pay off debt faster.
New York Debt Settlement
Debt settlement in New York, also known as debt arbitration or debt negotiation, differs from debt consolidation as the practice involves negotiating with creditors to accept a lower balance as paid in full. Although the practice may result in a lower credit score temporarily, the debtor pays off the balance sooner at less than what is owed. Debt settlement often helps consumers avoid bankruptcy. A debt settlement program includes only one monthly payment for each client. That payment is deposited into a trust account. As money accumulates in the trust account, one by one each creditor is settled and paid, until a person is debt free. Creditors are not paid on a monthly basis, like with consolidation services, but rather paid in lump sum payments. Fees and settlement fund are all included in the monthly payment.
New York Student Loan Debt Relief
Student loans are federally insured loans and do not fall under state jurisdiction. In addition, they may not be eligible for debt consolidation or debt settlement in New York. The Federal government offers several options for those with student loans who are suffering from financial hardship. For students without financial hardship, but who are still struggling to pay the loans, there are still options available, including graduated payment plans, longer repayment terms, or consolidation of student loans into one monthly payment.
For New York consumers struggling with debt, learning more about New York debt settlement or debt consolidation can reduce stress, eliminate the collection calls and help them get a fresh start toward financial freedom. This easy-to-use debt payoff calculator can help you review all options available to you.
More Helpful Resources
Learn about New York Bankruptcy Debt Relief Options Here.
Learn about all of your other Debt Relief Options Here.
For more information simply Call 866-376-9846 or get a New York Debt Relief Savings Quote after filling out the simple form here.