Hawaii is a beautiful place to live and visit and one could imagine how expensive it is to do either one. Majority of the money that this state makes has been from tourism, ever since 1959. The cost of living in Honolulu is 6.7% lower than in New York City and 3.6% lower than San Francisco. The per capita income for Hawaii is around $30,441. The average credit card debt per household is $7,527.
Debt Relief in Hawaii
Finding debt relief options in Hawaii is very possible. There are various types of companies that offer services that can help you to eliminate your debts. Some of the available options include debt settlement, debt consolidation and debt management. Whichever type of debt relief you decide to go with, make sure to find out everything you can before enrolling in any programs. For instance, for debt settlement agencies, only unsecured debts are settled upon, such as:
- Credit cards
- Personal loans and lines of credit
- Collections and repossessions
- Medical bills
- Business debts
Some of the debts that aren’t covered in debt settlement programs include:
- Utility bills
- IRS debt and back taxes
- Auto loans, student loans, government loans
- Mortgage and home loans
- Any other secured debt
Most debt relief agencies have minimum and maximum debt amounts that they will handle. You should also be sure to ask questions about interest rates and service charges and fees that you will have to endure if you decide to enroll in their debt relief program. You should steer clear of agencies that charge upfront payments and that ask you to enroll before a debt agent looks into your financial situation.
Debt Consolidation Loans
One form of debt relief in Hawaii is debt consolidation loans. This involves taking out a large loan to take care of all of your debts. This is a good option for people who have debts, such as credit cards and loans, which have high interest rates. This way, you only have to worry about one low interest debt. Those who have lost work or a source of income may find it hard to pay off bills on time, making this a possible debt relief option to be used. Debt consolidation allows individuals to pay off debts and still save money – something that is nearly impossible to do when you have multiple high interest debts to worry about.
In order to obtain a debt consolidation loan, you will need to get a copy of your credit report. You will need to have good credit in order to get the loan. This is why this is a better option for people who have recently lost income, but have been paying their debts on time up until then. Those with lower credit scores will have to get a bad credit consolidation loan, which will have a higher interest rate. Once you get a copy of your credit report, it’s a good idea to look it over and dispute any errors that you find that are negatively affecting your credit score.