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Consumers seeking credit card consolidation post-Hurricane Sandy

By Rick Murphy, Financial writer posted 11-23-2012 06:46 AM

  

Financial lives of superstorm Sandy victims are in lying shatters. As a result of the damage caused by the hurricane, household incomes of the people have taken a beating. Cities like New York, New Jersey and so on have millions of people who are ordinary wage earners. Moreover, a good number of them leave from paycheck-to-paycheck and so, recovering from such an enormous financial loss has become practically irreconcilable. Due to the rising national debt and reducing monthly income people are forced to consolidate credit card debt since they do not have sufficient funds to make their both ends meet.

The average weekly income of people in New York City is found to be $1,016. This amount has been deduced after subtracting the taxes and costs of repair works post-Hurricane Sandy. It is shocking to learn that annual savings rate of a good number of Americans is more or less 1% which is insufficient to meet such a colossal expense of rebuilding a wrecked house.

The problems are similar elsewhere as well. For instance, New Jersey another major victim of the super storm has been severely hit both physically as well as financially. The average weekly gross income of the New Jersey is approximately $991.20. However, this figure further goes southwards ($400) if other essential expenses are taken into consideration.

Hence, people who have exhausted their credit card funds and don’t have the means to make the payments can opt to follow the below mentioned tips.

Credit card consolidation tips

These tips will help debtors to manage their debt obligations on their own:

  1. Debt list – Debtors must create a list of all the outstanding balances and their respective creditors. Details like monthly payment deadline, rate of interests, loan amount, etc should be mentioned in the list.

  2. Savings – Hurricane victims should try to build up a good 401(k) account, have good funs in checking accounts, savings accounts and so on.

  3. Cost reduction – This is very important for all the debtors since it will not help them to recover from debt, if they keep on adding new debts. One should transfer high interest credit cards into a zero-interest credit card or low interest credit card.

  4. Insurance coverage – People with adequate insurance coverage should file their claim as soon as possible. The funds received from the insurance company will act as financial support.

Finally, debt consolidation loan is a great option for the cash-strapped people. They can settle all their outstanding balances from this loan money. This will help them to streamline their multiple payments into one single payment. As a result, debtors will be able to manage their financial obligations efficiently and save a good amount of money on interests.

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