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Consumer Debt Facts in Reading

Pennsylvania Consumer Debt Accumulation by County

Reading Consumer Debt Accumulation

$523 dollars in debt in 2016

The average Reading resident accumulated $523 dollars in debt in 2016. Reading citizens racked up a total of $46.0 million in debt in the 2016 fiscal year.

What are the Debt Consolidation Options available in Reading?

Facing Debt: You have options

If you've got some serious debt accumulating, it can be extremely daunting. When the bills keep piling up, and you might not know where to turn to for help. Maybe you've heard a bit about debt consolidation but aren't too sure on how it can help you climb your way out from the hole you're in.

Debt consolidation doesn't have to be scary, and there are many options which will help you get out of debt faster. Research all of your options and then pick the one that works best for you and your financial situation.

Secured Debt Consolidation Loans in Reading

Typically a secured debt consolidation loan allows you to lump most of your debt payments under a single bill at a lower rate than the individual rates you may have been getting. However, in order to secure a lower rate with a secured debt consolidation loan, you must have some type of asset to use as collateral, such as your home. More information on that can be found below.

How much of a loan you can get depends on the type of collateral you have and how much it's worth. These types of loans can also be repaid back over a long length of time, anywhere from 5 to 30 years, and they can often boost your credit rating if managed properly. Otherwise, you risk defaulting on the loan and losing the asset used as collateral.

Unsecured Debt Consolidation Loans in Reading

Much like a secured debt consolidation loan, an unsecured debt consolidation loan lets you combine your debt payments under one lump sum with one interest rate. However, unlike a secured debt consolidation loan, you're not required to have an asset or collateral to receive such a loan.

Because you aren't offering up any collateral for such a loan, it's a much riskier loan for debt consolidators, and your interest rate could be somewhat high. These loans are determined according to your credit history and score, and the upside to an unsecured debt consolidation loan is that you aren't in jeopardy of losing your asset should you default.

Using a Home Equity Loan as Debt Consolidation in PA

A home equity loan lets you borrow money, using your home as collateral. This home equity loan is essentially a second mortgage that allows you to turn the equity on your home (the money your property is worth minus the amount you owe on it) into cash to be used at your discretion, such as debt consolidation. These loans are set up to be repaid quicker than your mortgage in equal payments with a fixed interest rate.

Home equity loans are secured loans which have the same risks and rewards already mentioned.

There are also programs which permit you to consolidate all of your credit card debt into one single payment (and interest rate). If you've got good credit, you could also be able to negotiate a lower interest rate on your credit cards, making it easier to repay.

Another option is to qualify for a new credit card at a low introductory interest rate (possibly as low as 0%) and transfer your credit card balance to your new card. While you're in your interest free rate, you should pay double payments in order to pay off your debt faster. But understand that the interest may very well be fairly high after the promotional period. Consider this way of consolidating debt only if you know you can pay off the debt while the introductory rate is in effect.

Another option with respect to debt consolidation is to enroll in a debt management program. A credit counseling agency will help you set up a debt management plan to help you pay off your debt as quickly as possible. This agency will also usually negotiate with your debtors so that they can reduce interest rates and fees.

Once the repayments are negotiated you will usually set up an account with the credit counseling agency and pay one lump sum a month into the account. The credit counseling agency will then disburse the payments out to each creditor. This benefits you because you only have to make one payment, and additionally it gives creditors more assurance that your payments will be made on time every month.

Credit counseling agencies can also help you develop a budget that's simple for you to follow and help alleviate some of the stress your debt has been causing you. If you stick to the plan a debt management program can help you save money, get rid of debt sooner and have a positive effect on your credit score.

Debt settlement is a strategy intended to pay off debts for less than you owe in a timeframe less than if you pay the debt in full. Debt Settlements are usually reserved for higher debt amounts of at least $10,000. Usually, the consumer enlists the help of a professional debt settlement company and/or lawfirm.

Those who choose to settle their debt can end up paying less than the full amount they owe. You will usually damage your credit in the short term, and there is a risk of litigration from creditors.

If you are serious about settling your debt, give us a call and we will see if you qualify.

Consumers have recently filed 122 debt or credit card complaints in Reading.

Date Company and Reason
02/11/2018 A complaint against Convergent Resources, Inc. was filed on 02/11/2018 regarding debt collection practices
02/11/2018 A complaint against Convergent Resources, Inc. was filed on 02/11/2018 regarding debt collection practices
02/11/2018 A complaint against Convergent Resources, Inc. was filed on 02/11/2018 regarding debt collection practices
02/11/2018 A complaint against Convergent Resources, Inc. was filed on 02/11/2018 regarding debt collection practices
02/10/2018 A complaint against Alliance Data Card Services was filed on 02/10/2018 regarding credit card or prepaid card practices
02/10/2018 A complaint against Alliance Data Card Services was filed on 02/10/2018 regarding credit card or prepaid card practices
01/08/2018 A complaint against Alliance Data Card Services was filed on 01/08/2018 regarding credit card or prepaid card practices
01/08/2018 A complaint against Alliance Data Card Services was filed on 01/08/2018 regarding credit card or prepaid card practices
08/31/2017 A complaint against Alliance Data Card Services was filed on 08/31/2017 regarding credit card or prepaid card practices
08/31/2017 A complaint against Alliance Data Card Services was filed on 08/31/2017 regarding credit card or prepaid card practices

Last updated: 2018-04-12

Top Reasons for Debt in Reading

OverSpending

The single most common form of debt help that people seek is for credit cards that got out of control.

Divorce

If you are going through a change in marital status in Reading and can't pay all of the bills, we may be able to help.

Job Loss

When unemployment in Reading rises, many consumers are left unable to pay their bills. Debt management options are available.

Medical Bills

Unexpected medical expenses happen. A simple treatment can be billed at outrageous rates. Many consumers prefer to settle their medical debt.

Berks County, Pennsylvania annual city consumer debt rankings are in. We have analyzed the average consumer spending behavior across 50 cities and towns in Berks County, PA. The average citizen in Reading is spending approximately $523 more dollars than they earned annually, compared to the average of $309 across Pennsylvania. All statistics according to the latest data(2016).

Highest Debt Cities in Berks County Pennsylvania

  1. Temple ranks 1st out of 50 cities in Berks County in consumer debt accumulation with $35 per resident on average in 2016.
  2. Fleetwood ranks 2nd out of 50 cities in Berks County in consumer debt accumulation with $101 per resident on average in 2016.
  3. Fleetwood ranks 2nd out of 50 cities in Berks County in consumer debt accumulation with $101 per resident on average in 2016.
  4. St. Lawrence ranks 4th out of 50 cities in Berks County in consumer debt accumulation with $107 per resident on average in 2016.
  5. St. Lawrence ranks 4th out of 50 cities in Berks County in consumer debt accumulation with $107 per resident on average in 2016.
  6. Lorane ranks 6th out of 50 cities in Berks County in consumer debt accumulation with $137 per resident on average in 2016.
  7. Leesport ranks 7th out of 50 cities in Berks County in consumer debt accumulation with $143 per resident on average in 2016.
  8. Leesport ranks 7th out of 50 cities in Berks County in consumer debt accumulation with $143 per resident on average in 2016.
  9. Robesonia ranks 9th out of 50 cities in Berks County in consumer debt accumulation with $152 per resident on average in 2016.
  10. Robesonia ranks 9th out of 50 cities in Berks County in consumer debt accumulation with $152 per resident on average in 2016.
  11. Blandon ranks 11th out of 50 cities in Berks County in consumer debt accumulation with $153 per resident on average in 2016.
  12. Sinking Spring ranks 12th out of 50 cities in Berks County in consumer debt accumulation with $168 per resident on average in 2016.
  13. Sinking Spring ranks 12th out of 50 cities in Berks County in consumer debt accumulation with $168 per resident on average in 2016.
  14. Muhlenberg Park ranks 14th out of 50 cities in Berks County in consumer debt accumulation with $176 per resident on average in 2016.
  15. Adamstown ranks 15th out of 50 cities in Berks County in consumer debt accumulation with $184 per resident on average in 2016.
  16. Adamstown ranks 15th out of 50 cities in Berks County in consumer debt accumulation with $184 per resident on average in 2016.
  17. Hamburg ranks 17th out of 50 cities in Berks County in consumer debt accumulation with $200 per resident on average in 2016.
  18. Hamburg ranks 17th out of 50 cities in Berks County in consumer debt accumulation with $200 per resident on average in 2016.
  19. Mount Penn ranks 19th out of 50 cities in Berks County in consumer debt accumulation with $223 per resident on average in 2016.
  20. Mount Penn ranks 19th out of 50 cities in Berks County in consumer debt accumulation with $223 per resident on average in 2016.
  21. Birdsboro ranks 21st out of 50 cities in Berks County in consumer debt accumulation with $225 per resident on average in 2016.
  22. Birdsboro ranks 21st out of 50 cities in Berks County in consumer debt accumulation with $225 per resident on average in 2016.
  23. Reiffton ranks 23rd out of 50 cities in Berks County in consumer debt accumulation with $232 per resident on average in 2016.
  24. Shoemakersville ranks 24th out of 50 cities in Berks County in consumer debt accumulation with $244 per resident on average in 2016.
  25. Shoemakersville ranks 24th out of 50 cities in Berks County in consumer debt accumulation with $244 per resident on average in 2016.
  26. Boyertown ranks 27th out of 50 cities in Berks County in consumer debt accumulation with $250 per resident on average in 2016.
  27. West Reading ranks 27th out of 50 cities in Berks County in consumer debt accumulation with $250 per resident on average in 2016.
  28. West Reading ranks 27th out of 50 cities in Berks County in consumer debt accumulation with $250 per resident on average in 2016.
  29. Boyertown ranks 27th out of 50 cities in Berks County in consumer debt accumulation with $250 per resident on average in 2016.
  30. Flying Hills ranks 30th out of 50 cities in Berks County in consumer debt accumulation with $263 per resident on average in 2016.
  31. Laureldale ranks 32nd out of 50 cities in Berks County in consumer debt accumulation with $267 per resident on average in 2016.
  32. Wyomissing ranks 32nd out of 50 cities in Berks County in consumer debt accumulation with $267 per resident on average in 2016.
  33. Laureldale ranks 32nd out of 50 cities in Berks County in consumer debt accumulation with $267 per resident on average in 2016.
  34. Wyomissing ranks 32nd out of 50 cities in Berks County in consumer debt accumulation with $267 per resident on average in 2016.
  35. Rehrersburg ranks 35th out of 50 cities in Berks County in consumer debt accumulation with $276 per resident on average in 2016.
  36. Hyde Park ranks 36th out of 50 cities in Berks County in consumer debt accumulation with $279 per resident on average in 2016.
  37. Pennside ranks 37th out of 50 cities in Berks County in consumer debt accumulation with $305 per resident on average in 2016.
  38. Shillington ranks 38th out of 50 cities in Berks County in consumer debt accumulation with $378 per resident on average in 2016.
  39. Shillington ranks 38th out of 50 cities in Berks County in consumer debt accumulation with $378 per resident on average in 2016.
  40. Wernersville ranks 40th out of 50 cities in Berks County in consumer debt accumulation with $436 per resident on average in 2016.
  41. Wernersville ranks 40th out of 50 cities in Berks County in consumer debt accumulation with $436 per resident on average in 2016.
  42. Kenhorst ranks 42nd out of 50 cities in Berks County in consumer debt accumulation with $477 per resident on average in 2016.
  43. Kenhorst ranks 42nd out of 50 cities in Berks County in consumer debt accumulation with $477 per resident on average in 2016.
  44. Mertztown ranks 44th out of 50 cities in Berks County in consumer debt accumulation with $486 per resident on average in 2016.
  45. Reading ranks 45th out of 50 cities in Berks County in consumer debt accumulation with $523 per resident on average in 2016.
  46. Reading ranks 45th out of 50 cities in Berks County in consumer debt accumulation with $523 per resident on average in 2016.
  47. Stony Creek Mills ranks 47th out of 50 cities in Berks County in consumer debt accumulation with $767 per resident on average in 2016.
  48. West Lawn ranks 48th out of 50 cities in Berks County in consumer debt accumulation with $800 per resident on average in 2016.
  49. Kutztown ranks 49th out of 50 cities in Berks County in consumer debt accumulation with $1794 per resident on average in 2016.
  50. Kutztown ranks 49th out of 50 cities in Berks County in consumer debt accumulation with $1794 per resident on average in 2016.
How does Berks County rank in Pennsylvania?
Pennsylvania County Debt Distribution

6 counties in Pennsylvania accumulated $500+ in debt in 2016. Reading averaged $523 per resident.

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