Minnesota Debt Relief Program

Get out of Debt in Minnesota

When you think of Minnesota, your first thought is probably Minneapolis. This bustling city is home to the largest mall in the U.S., the Mall of America. Here you will find more than 520 stores and 60 restaurants as well as the nation’s first indoor theme park and the state’s largest aquarium. Visitors often spend several days at the mall and still leave many parts unvisited!

Minnesota offers much more than one of the largest malls in the world. Foodies enjoy the state’s diverse food markets. In St. Paul, you will find Keg and Case, a brewery and market filled with local vendors offering sweets and coffee. Also, don’t miss Mercado Central, a Latino market specializing in Mexican and South American food.

Those looking for outdoor adventures cannot go wrong in Minnesota state. No matter the season, there is something everyone can enjoy. Ice fishing is popular in Lake of the Woods, while snowshoers will enjoy Whitetail Woods in Farmington.

Finally, if you are lucky enough to visit Minnesota in the summer, you can join in the numerous activities at the Minnesota State Fair, the largest fair in the nation.

Despite all of Minnesota’s activities, its residents still know the pain of financial struggles. Individuals dealing with Minnesota debt must balance their family’s needs with their due debt obligations. As a result, many get caught up in too much debt and too little income to pay it off, causing the necessity of finding some form of debt relief.

How much credit card debt do Minnesotans owe?

According to recent surveys, the average household in St. Paul, Minnesota, carries $9,039 in Minnesota debt. The national average credit card debt is $8,425.

In addition to high debt, Minnesotans struggle with a high cost of living. The cost-of-living index is 100 in Minnesota, with groceries being more expensive than in other parts of the nation.

Salaries in Minnesota are lower than expected. Taking the cost of living into account, salaries fail to cover everyday expenses. The average Minnesotan earns a wage of $60,480, compared to the national average of $58,260. Of course, salaries vary widely across different market sectors, and individuals in the service sectors tend to fare the worst.

If you are concerned about your Minnesota debt, use the convenient online calculator here to determine how long it will take to pay off your creditors and how much you will pay in interest.

What causes credit card debt?

When households and individuals feel their finances are squeezing them, they tend to use their credit cards to cover gas, food, and other necessities. When the balance on the credit card increases, you pay more in interest payments. If you can only make the minimum payment, the balance keeps increasing and you end up with credit card debt that seems unsustainable. 

Low income

Low income is a major cause of credit card debt. While Minnesotans earn above the national average, inflation and the general cost of living eat away at their earnings. Their income does not cover their expenses and they turn to their credit cards, especially toward the end of the month, before the paycheck comes in. 

High inflation has led to many Minnesotans turning to their credit cards for necessities which often results in credit card debt. 

Making only minimum payments

Banks make money from the interest they charge on all credit cards and loans. When you use your credit card, you are charged interest unless you pay the balance in full at the end of the month. 

The minimum payment is calculated on the outstanding balance; higher balances come with higher minimum payments. While you might think that you are paying off part of your credit card debt, minimum payments are mainly used to pay off the interest. 

It can thus take years to pay off a credit card debt if you only pay the minimum payment. When you do not pay the full balance, interest is compounded and increases every month. 

You do not have an emergency fund

If your income is low, it is absolutely normal that you do not have enough left for an emergency fund. Emergency funds are money you have put aside for unexpected expenses. 

For example, your Minnesota home needs a new roof or your car breaks down and requires an expensive repair. An emergency fund would cover these out-of-the-ordinary expenses. 

The lack of an emergency fund means that Minnesotans are often compelled to use their credit cards to cover unanticipated expenses. If they do not have enough income to pay off the credit card balance, the debt increases. 

Health care expenses

The average medical debt is $1,000 but many Americans may be liable for a debt of more than $10,000 as a result of medical expenses, which are often charged to their credit card. 

Deductibles can be quite substantial: the average national healthcare deductible is a little more than $2,200. If you do not have that money in an emergency fund, it makes sense that you would use your credit card to cover it.  

Credit card balances, however, must be paid off. When they spiral out of control, they create a debt burden that can often seem overwhelming. 

Overcome Credit Card Debt with the Help of Americor

Fortunately, residents of Minnesota are not stuck paying down their debt for years to come. Americor offers several solutions to households tired of being financially bogged down by credit cards. There are plenty of financial solutions available to you to sort out your credit card debt and help you recover your financial freedom. 

Credit counseling

It is normal if you do not know the intricacies of credit cards and the financial tools available to you. 

For Minnesota residents, Americor can offer credit counseling to help you understand your spending patterns, the level of your credit card debt, and the financial solutions available to you. 

Our credit counselors are trained professionals and they can help you devise a monthly budget. They can also explain to you how to manage your money and how to include debt repayment strategies into your expenses so that you slowly bring down your credit card debt.

An Americor credit counselor can also examine all your current debts, and give you helpful advice on how to reduce or even eliminate them, outlining all your debt relief options.  As part of our services, we offer housing counseling and can provide information on debt-related matters, including tax issues, interest rate charges, student loan debt relief programs, and debt management program options. Contact us today and get started on your journey to financial wellness. 

Debt consolidation loan

When using debt consolidation loans you can merge all your credit card debts into one loan. A debt consolidation loan is usually low-interest and you pay an installment every month until you have paid off the whole debt. 

Credit card companies charge high-interest rates. A debt consolidation loan often has a lower interest rate and it makes your debt load more manageable and affordable for your income level. 

It is much easier to keep track of one single loan payment than to monitor several credit cards, with different interest rates. 

Debt consolidation comes with certain terms and conditions which decide eligibility, so you should discuss your specifics with a professional first. 

Debt settlement

Debt settlement aims at reducing the amount of debt you owe. You need a specialized debt specialist like Americor to present your case and achieve the most beneficial debt settlement agreement for you. 

As a reputable and trustworthy debt specialist, Americor is your partner in debt settlement. Our Minnesota financial counselors will look into your finances, your overall level of debt, and your income and will take your case to your creditors for the best debt settlement possible. 

Debt settlement can have an impact on your credit score but it is a helpful way to move forward from a credit card debt spiral to financial stability. 

Debt management

To find debt relief, Minnesota residents have the option to utilize debt management programs.

Our Americor debt specialists can work with you and your creditors to negotiate lower interest rates on your debt, waive late fees if you were delinquent on your monthly payments, and create a payment plan that is affordable and manageable for your income and expenses.

Debt management is meant to give you financial freedom within an acceptable time frame. 

Bankruptcy

When debt settlement, debt management, and debt consolidation loans are unable to manage the amount of debt you have accumulated, bankruptcy may be an option. 

Bankruptcy is a lengthy legal process that involves you and your creditor. The aim of claiming bankruptcy is to have part or the whole of your debt discharged. 

Bankruptcy is not a decision to make light-heartedly because it has serious long-term negative consequences. People in Minnesota who have filed for bankruptcy may find it difficult to secure a car loan, a mortgage, or a personal loan because of their low credit scores. 

Americor for Minnesota Debt Relief

No matter what type of Minnesota debt relief matches your household, you need debt specialists to stand by you and show you all the available options.

Call us today to find the best way to pay off credit debt, and get back on track to financial freedom. With the right help, you can find debt relief that works for you and your family and be part of our success stories.