Vermont Debt Consolidation Savings Estimate

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Consumer Debt Facts in Vermont

Vermont Consumer Debt Accumulation

$324 dollars in debt in 2016

The average Vermont resident accumulated $324 dollars in debt in 2016. There are options and special plans available to those in need of debt relief.

$4,580 dollars in debt since 2010

The average Vermont resident accumulated over 7,000 in debt since 2010.

What are the Debt Consolidation Options available in Vermont?

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 Vermont

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 Vermont

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 VT

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.

Top Reasons for Debt in Vermont

OverSpending

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

Income Ratios

How much do people in Vermont make and spend? On average, people in Vermont have spent $500 more than they make since 2010.

Job Loss

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

Medical Emergencies

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

Annual Rankings of debt accumulation by county in Vermont are in. We have analyzed the average consumer spending behavior across 14 counties in Vermont. The average citizen in Vermont is spending approximately $324 more dollars than they earned annually according to the latest data(2016).

Highest Debt Counties in Vermont

  1. Essex County citizens accumulated $442 dollars in debt on average in 2016.
  2. Chittenden County citizens accumulated $426 dollars in debt on average in 2016.
  3. Caledonia County citizens accumulated $390 dollars in debt on average in 2016.

Lowest Debt Counties in Vermont

  1. Franklin County citizens accumulated $192 dollars in debt on average in 2016.
  2. Addison County citizens accumulated $221 dollars in debt on average in 2016.
  3. Grand Isle County citizens accumulated $253 dollars in debt on average in 2016.

0 counties in Vermont accumulated $500+ in debt in 2016.

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Annual Rankings of debt accumulation by city in Vermont are in. We have analyzed the average consumer spending behavior across 67 cities in Vermont. The average citizen in Vermont is spending approximately $480 more dollars than they earned annually according to the latest data(2016).

Highest Debt Cities in Vermont

  1. South Royalton residents accumulated $1,835 dollars in debt on average in 2016.
  2. Lyndonville residents accumulated $1,289 dollars in debt on average in 2016.
  3. Plainfield residents accumulated $1,076 dollars in debt on average in 2016.

Lowest Debt Cities in Vermont

  1. Greensboro residents accumulated $90 dollars in debt on average in 2016.
  2. West Burke residents accumulated $120 dollars in debt on average in 2016.
  3. North Bennington residents accumulated $122 dollars in debt on average in 2016.

Total Debt by City in Vermont (FY 2016)

Debt Rank City Debt Accumulation Per Resident City Total Debt Accumulation
1 Burlington $1012 $43.1 million
2 Bennington $660 $5.9 million
3 Rutland $366 $5.8 million
4 Brattleboro $708 $5.2 million
5 Winooski $639 $4.6 million
6 South Burlington $193 $3.6 million
7 St. Johnsbury $552 $3.4 million
8 Barre $365 $3.2 million
9 Essex Junction $218 $2.2 million
10 Montpelier $270 $2.1 million
11 St. Albans $295 $2.0 million
12 Middlebury $247 $1.7 million
13 Springfield $440 $1.6 million
14 Lyndonville $1289 $1.6 million
15 Newport $328 $1.5 million
16 Randolph $701 $1.4 million
17 South Royalton $1835 $1.4 million
18 Bellows Falls $432 $1.3 million
19 Northfield $651 $1.3 million
20 White River Junction $512 $1.2 million
21 Fair Haven $495 $1.1 million
22 Vergennes $356 $0.9 million
23 Richford $605 $0.8 million
24 Windsor $409 $0.8 million
25 Bradford $899 $0.7 million

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