Best Debt Consolidation in Lexington, KY

How to choose debt consolidation in Lexington

Debt is a burden for Lexington residents that restricts their ability to balance a budget, make purchases and cover living expenses. There are many emotional effects as well, with those in debt commonly suffering from stress, anxiety and depression.

In Lexington, 31% of residents have an auto or retail loan. Many others have credit card debt, with an average balance of over $4,700 and a credit utilization of 31%. While these numbers are lower than the national and state averages, all people with debt in Lexington benefit from taking advantage of debt relief services. Thanks to receiving professional help, these people can free up more of their income and relieve their stress.

Getting debt consolidation help in Lexington

Debt consolidation lets Lexington residents work towards the goal of debt-free living. Debt consolidation involves rolling high-interest debts like credit cards into a single, lower-interest payment to help people save money and pay their debts off sooner.

You can apply for these loans yourself or work with a debt relief company for expert, full-service assistance. The Kentucky Attorney General provides valuable resources for finding a good debt consolidation company, including information on the state’s requirements for debt relief providers and a PDF list of registered debt adjusters. Ideally, your debt consolidation firm in Lexington has:

• Transparent pricing
• No upfront payments
• Ethical business practices
• Good customer service
• Clear strategies
• Reasonable promises
• Few customer complaints

While you can pursue debt consolidation on your own, debt relief companies provide expert assistance with debt settlement as well. These companies contact your creditors and negotiate a lower balance to save you money on both the principal debt and accrued interest. Because it’s easier to negotiate larger balances, debt relief companies usually work with unsecured debts of at least $10,000.

Once you partner with a debt consolidation company in Lexington, expect it to take two to four years to settle all of your debt. If you’re considering bankruptcy, know that debt consolidation can achieve the same results without impacting your credit as severely. Ask a debt consolidation specialist which option is right for you.

Secured debt vs. unsecured debt

It’s worth noting that debt consolidation is only possible with unsecured debt like credit cards, as opposed to secured debt like an auto loan or mortgage. Secured debt usually has a lower interest rate and is backed by physical assets that creditors can repossess.‌ As a result, secured loans are not eligible for debt consolidation services.

Debt settlement alternatives in Lexington

If you owe less than what debt consolidation companies traditionally work with, there are alternatives available for you. You can:

• Transfer your balance to a 0% annual percentage rate credit card
• Sign up for debt counseling services in Lexington
• Take out a lower-interest personal loan or home equity loan to pay down your balance

With discipline and a solid financial strategy, you can achieve a debt-free lifestyle and a more secure financial future.