When you're in trouble managing several bills in Alaska, you may consolidate them into one easy monthly installment payable at a low interest rate. Alaska debt consolidation enables you to repay your loans and credit without much hassle and saves you from getting harassed by creditors or collection agencies.
Alaska debt consolidation - What professional help can you get?
There are 2 options to consolidate bills with professional assistance.
Consolidation program (or debt management):This is where you contact an Alaska debt consolidation company and let them work with your creditors to reduce your high interest rates and cut down or eliminate late fees and over-limit charges. Learn more...
Consolidation loan:There are banks that offer Alaska consolidation loans. These loans provide you with large amount of cash to pay off all your bills in one payment. All you need to do then is pay down the consolidation loan. Use the calculator given below and determine your savings with a consolidation loan.
Can you consolidate bills on your own?
If you have credit card bills and you'd like to tackle them on your own, you could shift your balances from several accounts to a low interest credit card. This enables you to repay your card bills in low monthly payments. However, when the introductory rate period of the card ends, creditors raise the interest rate, which in turn increases your monthly payments. So, it is better to go for a balance transfer only when your debts are low enough to be paid back within the introductory period. Find more details on the do it yourself consolidation page.
How does Wales consolidation work?
There are companies offering programs related to debt consolidation in Wales, Alaska. These companies help you get rid of your high interest credit card bills, payday loans, medical bills, and other debt. Wales consolidation programs work exactly the same way as consolidation programs available in other Alaskan cities. When you choose these programs, you're required to pay enrollment fee, negotiation fees, and other charges.
Avg credit card debt: $6,983
Delinquency rate on (credit card): 1.12%
Mortgage debt: $216,009
Delinquency rate on (Mortgage): 1.15%
Auto loan debt: $22,042
Delinquency rate on (Auto loan): 0.78%
Unsecured personal loan debt: $12,397
Delinquency rate on
(Unsecured personal loan): 1.75%
Debt consolidation in Wales, Alaska - What are the pros and cons?
The pros and cons of Wales and Alaska debt consolidation are explained below.
- Pay one monthly payment instead of many.
- Avoid being harassed by creditors and CAs.
- Get rid of excess late fees and over-limit charges.
- Improve your credit by paying off bills.
- Pay more interest on a long term consolidation loan.
- Some companies may charge high upfront fees.
For further information, refer to this article on the pros and cons of consolidation.
Alaska debt settlement - How does it work?
If you can't save enough to make the monthly payments on your bills, you should settle with your creditors. You can either settle your bills on your own or get professional help by enrolling in an Alaska debt settlement program.
In an Alaska debt settlement program, you deposit your monthly payments into a trust account set up by the settlement company. Once the money in the account has accumulated to a certain amount, the company starts negotiating with your creditors or CAs in order to reduce your balance so you can pay off your bills faster. The remaining balance is forgiven by creditors or CA. Learn more how settlement programs work.
Can you settle or consolidate payday loans in Alaska?
Yes. You can consolidate or settle payday loans in Alaska when the debt goes beyond your control.
Payday loans are legal in Alaska under the Alaska Statutes 06.50.400-06.50.560. You can borrow up to $500 from the licensed payday loan companies in the state. But the APR on the loan is 520%, which makes it quite difficult to pay it off. If someone borrows $500 from a payday loan company with a 520% APR, then that person will owe $2600 2 weeks later. Some borrowers don't even earn so much in a month.
Needless to say that the loan cycle doesn’t stop here. Many borrowers roll over the loan several times unable to cope with high-interests.
In Alaska, a borrower can roll over a loan up to two times. So if someone does it 2 times, then the total amount due will be over $7800.
It’s quite easy to get trapped in payday loan debt due to the nature of the business model. A lender won’t make a profit unless a borrower has renewed a loan several times. Alaska ranks second in the list of states where payday loan rates are the highest. Alabama tops the list whereas the average rates in Virginia, Texas, Nevada, and other states are almost equally high.
For those who get into payday loan debt in Alaska, the cost can be substantial and long-lasting. Debt consolidation and settlement are convenient options for these people.
How to settle payday loans in Alaska
Settling payday loans is quite easy in Alaska. You just need to follow a few steps. Here are a few of them.
- List your payday loans - both legal and illegal
- Calculate how much you owe in total
- Contact a good debt settlement company
- Explain your situation to the settlement company
- Ask questions to the debt negotiator until you’re satisfied
- Enroll in the payday loan debt settlement program
- Read all the clauses and sign an agreement with the company
- Save money in the dedicated account to initiate the negotiation process
- Keep track on the progress of your accounts
- Once a settlement deal is cracked, check if your creditors have been paid
- Check your credit report and see if the account status has been updated as ‘paid as settled’
How to consolidate payday loans in Alaska
Since the consolidation process is different from payday loan debt settlement, so we have to take a few different steps to combine loans into one single payment. Let’s find out what steps we should take to consolidate payday loans in Alaska.
- 1 List the names of payday loan companies
- 2 Check if the payday loan company is (licensed) https://www.commerce.alaska.gov/web/ in Alaska
- 3 List the legal payday loan lenders on a sheet of paper
- 4 Get a free online counseling session from a payday loan consolidation company
- 5 Resolve your doubts and join the payday loan consolidation program
- 6 Get your new repayment plan from the consolidation company
- 7 Start repaying your debts in small monthly installments
- 8 After successful completion of the consolidation process, get your credit report updated as “paid in full”
Few more payday loan consolidation tips for you
- Contact the State of Alaska Division of Banking & Securities if the lender is violating all the laws
- Share your problem in the (payday loan forum) https://forums.debtcc.com/paydayloan/index.html to get valuable suggestions from the community members and experts
- Revoke ACH authorization so that lenders can’t take money from your bank account
- Spend less than what you earn so that you can complete the payday loan consolidation process smoothly
First of all, you need to work with a legal debt settlement firm in Alaska. However, if that debt relief measure tanks, then you'll have to opt for bankruptcy, as there's little choice left for you at this stage of your financial health.
Secondly, never use a secured loan like a refinanced home loan to pay off an unsecured debt like credit cards. It'd devastate your financial condition further as you're using a secured loan that has a collateral, i.e., your home to pay off an unsecured debt like a credit card, which has no collateral. In case, you fail to pay back the refinance loan, then your lenders may have your home foreclosed and drive you out of your home as a result of it.
Thirdly, you can use the $95K refinance loan to pay off your rental home mortgage. It'll ease up your financial tightness to some extent.
Finally, consult a credit counselor to create a chart out a proper map to resolve your debt problems.
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FAQ on Wales, Alaska consolidation and settlement
What your sister can do is, get enrolled in a Wales consolidation program and let a consolidator work with the CAs to reduce the interest rate on her bills and make the payments affordable. Wales consolidation programs can help substitute several bill payments with a single monthly payment. So, your sister does not have to deal with several creditors/CAs or keep track of several bills payable at different interest rates.
Alternatively, your sister can enroll in an Alaska debt settlement program and reduce her outstanding balance so that it becomes easily manageable.Learn more...