Find the Best Debt Consolidation in Omaha, NE

How to choose debt consolidation in Omaha

Nearly half of Americans have trouble paying their bills each month. The costs of medical bills, housing and food are exceeding income growth. And recently, total credit card debt passed $1 trillion for the first time since the Great Recession of the late 2000s, according to a study by the Pew Research Center. All of this can increase the likelihood of debts not being paid.

Like so many Americans, those living in Omaha find themselves needing debt relief. When the average credit card interest rate is more than 16 percent, debt can accumulate quickly.

Omaha’s median household income of $59,970 is very close to the national median, according to the U.S. Census Bureau. However, more than 16 percent of Omaha residents live in poverty compared to 10.8 percent of their fellow Nebraskans and 12.3 percent of people nationally.

This economic struggle hits home for Omaha residents. Debt consolidation is an alternative to bankruptcy if you’re unable to keep up with payments or the amount you owe is skyrocketing out of control because of interest.

The most common form of debt consolidation in Omaha is debt settlement, which allows you to make one payment into an account specifically created for debt settlement purposes. A debt settlement company will use the funds that accumulate in that account to negotiate with your creditors in an attempt to settle your debts for lower amounts than you owe.

Debt settlement is ideal for people in Omaha who have poor credit scores and more than $10,000 of unsecured debt from credit cards, medical and utility bills. Secured debt, such as mortgages, vehicle loans and other debt secured by collateral, is not eligible for debt settlement.

It typically takes two to four years to settle your debts. While debt settlement may initially lower your credit score, it will improve over time if you limit your credit use and avoid future debt. You can read more about settling credit card debt on the Federal Trade Commission website.

• Remains private and is not public record
• Usually does less damage to your credit score
• Protects personal assets

If your debt is less than what debt consolidation companies in Omaha work with, you still have options to get your debt under control and set yourself up for a brighter financial future. Your options include transferring your balance to a credit card with zero percent interest, debt counseling or a debt consolidation loan that has a lower interest rate than your current debt.