Nebraska Debt Relief Program

Are You Seeking Nebraska Debt Relief Programs?

Known as the Cornhusker State, Nebraska has a combination of farmland and vibrant cities that make it attractive to its residents and visitors. Its college football team, the Nebraska Cornhuskers, is a source of pride for those who live in the state. Wherever you go, you are likely to encounter someone wearing a tee shirt, jacket, or sweatshirt supporting the team.

The State of Nebraska is also home to the city of Omaha. Omaha is full of exciting restaurants, a burgeoning nightlife scene, and plenty of shopping opportunities. The CEO of Berkshire Hathaway, Warren Buffett, one of the world’s richest billionaires, has lived in Omaha since he was born. Known as the Oracle of Omaha, he still lives in the same house that he purchased in 1958 for $31,500.

When people think of Nebraska, they often associate it with small-town America, full of mom-and-pop stores, friendly people, and classic hamburger and milkshake restaurants. While this remains partly true today (it is, after all, the home of carb-friendly classic Don & Millie’s Restaurant), Nebraskans do feel the pinch when it comes to costs of living, rising inflation, and increasing debt. This pinch leads many Nebraska residents to seek out debt relief solutions.

How Much of a Problem is Debt in the State of Nebraska?

The average Nebraska household carries only $1,027 in credit card debt, therefore debt in Nebraska is well below the national median average credit card debt of $3,706 as seen here. The state has a cost of living index of 89.1, below the national average of 100. This makes it one of the least expensive states to live in in the United States. However, alongside a lower cost of living come smaller salaries and fewer career opportunities.

In addition, inflation and rising home costs have impacted Nebraska just as they have other states across the nation. The price of a new home in Nebraska has been up 14.7% over the past year. It is no wonder that many new homebuyers feel they are being priced out of the market and forced to continue renting, making the sought-after dream of homeownership far from realistic. Loan debt made from home loans, payday loans, student loans, and medical debt can create financial hardship for Nebraska residents.

Many Nebraskans become caught in a cycle of making minimum payments on their debt as they struggle to cover the costs of basic living expenses. Saving for the future is pushed to the side, making retirement and investing afterthoughts. Given that credit cards is a form of unsecured debt, people may think it is acceptable to repay them slowly by only making minimum payments. To find out how long it will take you to pay off your debt by making minimum payments (and how much interest you’ll pay to your lenders), use the handy calculator here.

Why Are Minimum Monthly Payments a Debt Trap?

Minimum monthly payments are calculated based on your credit card balance. The higher the balance, the higher the minimum monthly payment. 

The problem with minimum payments is that they cover the interest you pay to the bank for the loan you get through your credit card, but there is very little that goes toward the actual loan. 

It will take you years to pay off your credit card debt if you only pay the minimum payment, and that is only if you stop using your credit card. If you keep piling debt on your credit card, the minimum payments will balloon but they will still be mostly interest on the debt. 

Banks make money from the interest they charge on loans. Interest is charged on car loans, mortgages, and personal loans. When you buy a home or a car in Nebraska and you ask your bank for a loan, you will be charged interest. Credit cards are a type of unsecured loan and banks charge very high interest rates on outstanding credit card balances. 

When you only pay the minimum monthly payment, you are perpetuating a credit card debt and you are drowning yourself in debt. There are better ways to get rid of your debt and Americor’s debt specialists are here to help you. 

What if I don’t pay the minimum monthly payment? 

When you do not pay the minimum payment, your credit card falls into delinquency and you may face debt collection. The credit card delinquency rate in Nebraska is 6.3%. While it is below the national average, household incomes are also lower in Nebraska. People may find it hard to repay their credit card balance and find their debt overdue.

When you fail to pay the minimum payment, you are charged a fee. If you repeatedly fail to pay the minimum payment, the fee increases. The bank will also raise the interest rate it charges on your outstanding balance. Your balance will increase and you will have to pay more. 

What Causes Credit Card Debt?

Low income

Even though Nebraska has a lower cost of living than other States, high inflation and low incomes create the perfect storm for Nebraskans. 

It is not unusual for people to use their credit cards to pay for necessities when they run out of money, particularly toward the end of the month. Most people live paycheck to paycheck and things are getting more expensive. After paying for other types of debt such as mortgages, student loans, etc., it is no wonder that they may resolve to their credit card at the end of the month. 

When the credit card balance increases, it can easily spiral out of control and create credit card debt. 

Unexpected expenses

Unexpected expenses are just that: expenses you have not budgeted for. Your car could require repairs, your home could urgently need a new roof, or you may have a medical emergency. Bills need to be paid, and unless you have insurance coverage or an emergency fund, a credit card might be your only option, even though it is not the best one. 

Whatever the emergency, you need money to cover it. Unless you have an emergency fund, the easiest solution is to charge your credit card. 

Your credit card balance increases with every emergency. If you only pay the minimum monthly payment, it will take a long time to repay the balance and the interest will balloon the amount you owe. 

It is very easy to find yourself in credit card debt when life events make everyday living unpredictable. 

Nebraska Debt Relief Solutions

It is good to know that you are not alone against your credit card debt. Americor provides debt relief services to anyone wishing to live debt-free. Our specialists are here to help you find the most suitable solution for your debt. Our goal is to support you if you are seeking debt relief in Nebraska. We are available to help you overcome the hurdle of credit card debt. 

Credit counseling in Nebraska

Sometimes people might find it hard to manage a budget. Credit counseling helps households and individuals to assess their current financial situation and evaluate their income and expenses. Together we can review your debt relief options and devise a budget and a plan for getting you out of debt. Contact us today to find more information and get in touch with a credit counselor who will help you get out of debt.

Credit counseling with Americor establishes the basics of budgeting, money management, and debt repayment strategies. We will create a credit report based on your financial data, offer you an overview of your financial situation, and see how much you need to set aside to repay your credit card debt. Even small changes can make a big difference, one monthly payment at a time. The credit counselor can suggest affordable changes in your lifestyle or expenses so that a sum is available on a monthly basis to repay the credit card balance. 

You can get help with debt reduction now. Get started today by filling in the contact form on our website. 

Debt consolidation loans in Nebraska

When you have several credit cards and all have high balances, one of the debt relief options you should consider is a debt consolidation loan. 

Consolidation loans gather all your debts into one low-interest loan. Credit cards charge high interest rates but you can negotiate a single, low-interest loan that you will repay every month. 

Debt consolidation loans are helpful if you have a good-enough credit score and you own more than one credit card. Such loans bring together all your debts under one umbrella loan. It makes it easier to manage your debt and you benefit from lower interest rates. 

Debt consolidation loans come with terms and conditions and you should not default on your payments. It is important to understand that it takes time to repay the whole debt, even with a consolidation loan. 

If you want to know if you qualify for a consolidation loan, call us for a free assessment.

Debt settlement in Nebraska state

Debt settlement is another option for Nebraska debt relief. 

Americor debt specialists negotiate with your creditors—usually banks and credit card companies—to reduce the amount of debt you owe them. We present your income, expenses, and all necessary paperwork to make our case and help you reduce your overall credit card debt. 

Once the creditors agree to settle the debt, you have to pay a smaller debt, usually in a lump sum. 

Debt settlement is a productive way to reduce your debt to a manageable sum for your income. When you choose debt settlement, your credit score will take a hit, but with prudent financial management, you can improve it. It is always much easier to manage your finances if you don’t owe credit card debt. 

Debt management in Nebraska

Debt relief is more efficient if you follow a debt management program that allows you to make your credit card debt more affordable. A properly designed debt management program will help you stay on top of your debt and repay it smoothly.

Americor’s debt specialists can design a debt management plan (DPM) to help you manage your debts. Each plan is custom-made based on each person’s personal finances, income, and expenses. That is why you need a debt specialist to help you with a DPM that matches your financial circumstances. 

With Americor on your side, you can negotiate lower interest rates with your bank. We can also ask your bank to waive late fees and agree to a more manageable payment schedule. Banks want to get their money back. When they see that you have hired a reputable credit counseling agency like Americor and that you are determined to make it work, they are more likely to agree to more affordable terms of credit card debt repayment. 

With debt management programs, our goal is to help people living in Nebraska to achieve a debt-free future so they can breathe easily again. Contact us today on the phone or use the contact form on our website to find out more about our debt management services.

Bankruptcy

When other solutions are beyond your financial means, filing for bankruptcy is the ultimate option to find debt relief. However, you should know that when you file for bankruptcy there is a whole legal process involved. 

You must hire the help of an attorney who will fight your case in court. Bankruptcy may discharge your debt completely if there are convincing arguments about your inability to repay your debt. Bankruptcy may also reduce your overall debt. 

However, bankruptcy stays on your financial record and you may be asked to liquidate assets to benefit from such a legal process. Your credit score will be damaged and you may be unable to ask for a loan in the near future. It takes a few years for your credit score to improve after declaring bankruptcy.