Maine is known for its verdant parks, stunning wildlife, and beautiful areas for skiing. No stranger to snow, the state has numerous resorts for winter sports lovers. Individuals who prefer nice hikes appreciate Acadia National Park, which offers over 160 miles of trails varying from easy to expert.People interested in seeing humpback whales in their natural habitat may appreciate a whale-watching cruise. These cruises involve several hours spent sailing in the warmer summer months, seeking a glimpse of the impressive creatures.Maine isn’t only for nature lovers; it is for foodies as well. The state hosts the Maine Lobster Festival annually in August. Over 20,000 pounds of red lobsters are brought in for visitors to dine on, and there are numerous activities to choose from, including concerts and arts and crafts vendors.The state also has some fascinating cities to visit, including Kennebunkport and Portland. Kennebunkport attracts visitors during the summer when they can enjoy swimming, sailing, or fishing along the town’s numerous beaches.Of course, no visit to Maine is complete without a stop by Stephen King’s house in Bangor, Maine. True to his nature as one of the world’s most renowned horror novelists, Stephen King’s new home includes an iron fence in the shape of a cobweb and numerous other eccentric features.While Maine has a lot to offer its visitors and residents, the state is more expensive than others. As a result, many residents get stuck in a cycle of making minimum payments toward their debt and earning enough to cover their basic needs.If you are seeking Maine debt help, use the convenient calculator found here to determine how long it will take you to pay off your creditors and how much interest you will pay, making only minimum payments.
Credit Card Debt in Maine
Most people enjoy shopping with their credit cards and splurging on clothes and fine dining. To some people, though, credit cards become their lifeline when their income can’t cover the basics. As living costs increase and salaries do not budge, many individuals and families are squeezed by their financial situation. They use their credit cards to cover expenses which would be paid by their salaries under normal circumstances. Credit card balances have to be paid. When you only pay the minimum payment, the balance balloons, and the credit card turns into a debt trap.
Minimum Payments can Become Debt Traps
Minimum payments are the amount of money you are required to pay toward your credit card balance. The bank defines the minimum payment and is usually very low, around 2% of the balance. What confuses most people is that the minimum payment usually includes only interest. Banks charge interest on the money they lend to people because that is how all financial institutions like banks make money. When you borrow money from the bank to buy a car or a home or use your credit card, you must pay interest. Minimum payments basically cover the interest you have to pay the bank. They barely touch the actual balance and they turn into a vicious circle that perpetuates the debt trap. Although you feel you are paying back your credit card, you are, in fact, paying mostly interest to the bank. It will take you many months to repay your full balance if you only make minimum payments.
What Causes Debt in Maine?
Unfortunately, it is all too easy to fall into debt, both in Maine and throughout the United States.
Insufficient income
Incomes have not followed price increases. People are working long hours but they still cannot cover their everyday expenses. Groceries, gas, heating, and utility costs have all increased. If income is not enough to cover everyday living expenses, people in Maine use their credit cards as a last resort credit source. When the balance increases and you cannot afford to pay it off, you will reach a point when you have maxed out your card. When you do not have a viable answer to your debt crisis, you can call Americor to assist you with solutions.
Unexpected expenses
Unexpected expenses can hit us at the most unfavorable time. Your car may break down when you also have to pay for utilities or when you must repair your home’s hot water heater. When people do not have an emergency fund to cover such expenses, the easiest and fastest solution is to charge the expense on their credit card. When the time comes to repay the balance, many people in Maine find it difficult to cover it.
Life events like job loss, unemployment, and divorce
Health problems, unemployment even for a little while, or a life-changing event like a divorce or a death in the family can trigger a massive change in finances. Expenses and costs can become overwhelming, especially when your income is unstable. Loan payments fall behind and credit card debt swells. Americor debt specialists can assist you with debt relief in Maine.
Debt Relief Solutions in Maine
It is easy to despair in front of a massive debt problem. But it is good to know that you can trust Americor to use its many resources to find the right debt relief solution for you.
Credit counseling and debt management
Credit counseling can help you re-evaluate your finances and how you budget for your expenses. Counseling helps you understand how much money you earn and what your expenses are. Through careful budgeting and by bundling expenses, you can find room to maneuver for credit card repayment.Debt management establishes a Debt Management Plan which negotiates lower interest rates and an extended repayment period for your debt. If you failed to pay the minimum payments, debt management can waive the late fees you were charged.
Debt settlement
When your debt reaches untenable levels, Americor debt specialists may suggest debt settlement. Debt settlement is a negotiation that debt specialists make to reduce your debt level to more manageable levels. For debt settlement to be successful, you need trustworthy, professional, and experienced debt specialists. Debt settlement usually achieves a 25% to 50% reduction of your debt and requires you to pay the rest. Such a reduction can make your debt more sustainable and easily integrated into your expenses.
Debt consolidation loan
Most people have several credit cards and may even have student loans, medical debts, personal loans, and other types of debts. If you need assistance with your loans, a debt consolidation program can help you gather under one umbrella loan all these loans. When you consolidate your debt, you get money to pay back all the other loans and you can repay it in one monthly payment instead of juggling multiple installments. Debt consolidation loans often carry lower interest rates than credit cards which are particularly helpful and you also benefit from an extended repayment period which is usually 3 years. A debt consolidation loan helps you keep track of your debt payments and is more manageable than multiple debts spread across various banks and credit institutions.
Bankruptcy
Filing for bankruptcy means you are declaring yourself unable to repay your debt. Bankruptcy is a process where you hire a lawyer who will present your case to a court that decides how much of your debt can be forgiven. The decision rests on the type of debt you carry, your level of income, your assets, and your previous credit history. Filing for bankruptcy is a serious decision that frees you of debt but also tarnishes your credit score and makes it difficult to apply for a loan. Bankruptcy can stay in your credit history for 10 years but is a last-resort answer to a debt problem.
Americor Debt Relief in Maine
There are many types of debt. Besides credit card debt, Americor can help Maine residents with their personal loans, payday loans, mortgage debt, and medical debt, as well as personal business debts and private student loans. Instead of worrying about your debt, take action and contact us for free information about debt relief and to learn about our debt settlement and debt consolidation services. Talk to one of our certified debt specialists and find out why many consider our consumer-friendly terms to be among the best in the industry.
Americor Offers Maine Debt Help
It is challenging to meet debt obligations when you have other expenses, like caring for your family and keeping a roof over your head. With Americor, you can get the help you need. Explore our available debt relief programs by clicking the links below:
“In 2020, I was drowning in debt. I enrolled in Americor for my 10 creditors for $110,000… and today (three years later) I have cleared my entire balance. It was not an easy process, but Americor guided me through and I am debt free!”
Matthew E.
“I was down $80k in business debt, and I remember hearing Americor radio advertising. My credit score was down to 570 from 810. I’ve been in the program for over 3 years. It works, just be patient. And my credit score is currently back up to 710!”
Hugo P.
Hugo saved over $11,900 and 27 years of payments, he will be completely debt free in 2/12 years with our quick solution! He’s managing his money efficiently and sees his finances improving each day with the help of the loan offered through Credit9!
Maine may be beautiful, but residents know how expensive the state is. The state’s cost of living index is 115, compared to the national average of 104.61. Housing is especially costly. Homes in Maine’s largest city, Portland, cost an average of $426,914, while a two-bedroom apartment rents for $1,622 monthly. According to Payscale, this makes the cost of living in Portland 15% higher than the national average.
Salaries in Maine are lower than in other states across the nation. The average worker can expect an annual wage of $53,230, compared with the national average of $58,260. The largest employment sectors in Maine include sales and administrative support, both of which are relatively low paying.
Banks refer to credit card delinquency when they see that a cardholder does not pay the minimum payment for over two months. The average credit card delinquency rate in Maine is 6.36%, which is relatively manageable. However, it is on the rise.
When a person cannot pay their credit card debt, the bank may report it to debt collectors. Delinquents also face lower credit scores and increased interest rates because they are perceived as high-risk borrowers.
When you reach the point where you have not paid your credit card minimum payment for several months you know you need debt relief. Our Americor debt specialists are here to help you navigate through your Maine debt relief options.
