Debt consolidation makes debt easier to manage and pay off by merging your payments into one monthly fee. This service is particularly helpful for people with multiple high-interest debts. Our partners at We researched the best debt consolidation in Lexington to find you the help you need getting control of your finances.
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:
No upfront payments
Ethical business practices
Good customer service
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.
National Debt Relief provides debt consolidation services in Kentucky alleviating credit card debt, medical debt and unsecured loans. This company is accredited and has a proven track record of success. Its clients leave overwhelmingly positive reviews, making this debt consolidation firm one of the industry leaders in Lexington.
CreditAssociates offers actionable advice for resolving unsecured debt and provides debt consolidation to Lexington residents. It’s been in business for over 12 years and has settled over 218,000 accounts. This company also offers free debt consultations from its staff of debt specialists. Past customers are happy with CreditAssociates' customized debt relief plans.
Freedom Debt Relief helps you reduce the amount of debt you owe and become debt-free sooner. This company negotiates your debt with your creditors to reduce your payments to one monthly bill. Customers are exceptionally pleased with the service they received from Freedom and feel that their stress lifted after signing up for its services.
Pacific Debt provides customers a variety of debt consolidation options, such as credit counseling and debt settlement. This company has over 15 years of debt relief experience and has settled over $200 million in customer debt. Reviews indicate helpful employees and manageable monthly payments thanks to Pacific Debt’s services.