Getting Debt Consolidation in New York  | Financial Challenges & Solutions

Getting Debt Consolidation in New York 

Getting Debt Consolidation in New York 

 

New York hustles, bustles, and dazzles—and while it’s one of the most glamorous places to live, small luxuries in the city don’t come cheap. While almost everything costs more in the City of Dreams, housing is a big pain point for many residents. Average rent prices run between $1,700 to $5,700, depending on the area. But with an average income of just a little over $30,000, surviving in New York is a challenge. 

 

If you find yourself in a prickly situation with debt, you may be looking for options to lower your monthly repayments. One solution is through debt consolidation in New York. 

 

Average Consumer Debt in New York 

 

In 2020, the average credit card debt in New York was $5,414. Gen Xers, born between the ‘60s and ‘80s, incurred the most credit card debt, while Gen Zers—today’s youth—incurred the least. In comparison, the average mortgage in New York was at $34,000, just a hair under the national average. 

 

New York Consumer Loans

 

Consumer debt encompasses all personal spending categories. These include debt incurred through credit cards, student loans, auto loans, personal loans, and some household loans. Out of all those, credit cards offer some of the most prolific spending opportunities—mainly because swiping now and thinking later is an easy way to borrow instant money. And in the highly metropolitan New York, most can’t resist the temptation of turning window shopping into an actual shopping spree. 

 

New York Employment and Income Status 

 

The New York unemployment rate almost reached 10% at the height of the pandemic. But since opening up most of its establishments, that value has consistently gone on a downward trend at 7.40% in August 2021. Meanwhile, the median household income ranges from $34,000 to $82,000, depending on age. Households under 25 years old make the least while those in their pre-retirement middle ages (45-64) make the most. 

 

The state’s minimum wage is $15 per hour within New York City, while other nearby areas are expected to rise to $13.20 per hour by 2022

 

Banking in New York 

 

Being the home to New York City, the state houses some of the country’s largest selections of banks and credit unions. You’ll find traditional banks, from the Bank of America to Chase, and can enjoy services from online banks, such as Discovery and Ally.

 

For New York residents who need debt consolidation help or certain types of loans, Prudent Financial Solutions, Inc. offers a variety of financing services. 

 

Taxes in New York 

 

The state of New York updates taxes yearly, so residents need to pay careful attention to make sure they’re filing against the right percentages. 

 

  • Income Tax — ranges from 4% to 10.90%, depending on your income bracket. If you make over $8,500 per year, you have to pay a base value in tax on top of the percentage. This amount ranges from $340 to $2,510,683. 

 

 

 

Depending on your lifestyle and activities, you may have to pay other forms of taxes within New York. For instance, you need to pay an excise tax for every pack of cigarettes you buy. 

 

New York Housing 

 

New York’s housing market isn’t affordable. With competition around all year long, it’s difficult to find the perfect two-bedroom without breaking the bank. Generally, prices vary greatly across the state. You’ll find that Manhattan is the most expensive, with an average rent cost of $4,210 per month. Meanwhile, Brooklyn and Queens offer a more affordable stay of under $3,000—but they’re still significantly above the national average of $1,500. 

 

Apart from location, the type of housing you choose will also affect prices. For example, studio apartments are cheaper than lofts, and you’ll have to shell out a pretty penny to afford a full-size house. 

 

Retirement in New York 

 

Living in New York as a worker is reportedly more expensive than being there as a retiree. One reason is that they don’t tax Social Security income. Additionally, the first $20,000 from the 401(k) or Roth IRA distribution is tax-free. 

 

While these lower the financial burden on retirees, it doesn’t change the fact that the cost of living in New York is expensive nonetheless. On average, individuals may spend anywhere between $30,000 to $60,000 per year on living expenses alone. Decreasing luxuries and opting to live in less expensive cities can help reduce costs for 16% of the population—those over the age of 65. 

 

Average Insurance Premiums in New York 

 

An important thing to know about insurance premiums is that they usually differ by age. More often than not, young individuals can benefit from cheaper health insurance but must pay a higher price for auto insurance. Prices also vary wildly across carriers, so New Yorkers with the same coverage may not be paying the same price. 

 

  • Auto Insurance — as low as $1,300 for 40-60-year-olds and as high as $5,500 for 16-17-year-olds. Despite these high costs, New York ranks in 14th place out of the top 15 states with the cheapest auto insurance for teen drivers. 

 

  • Health Insurance — average costs range from $400 to $700 per month depending on coverage and plan. These are usually ranked by premium, which then determines coverage. For instance, bronze plans may cover up to 60% of the medical fees, while gold plans may cover up to 90%. Meanwhile, low-income earners can opt for the more affordable Medicaid or catastrophic plans (usually $150 and under per month). 

 

  • Life Insurance — these vary across carriers and coverage limits. But in general, you can get $250,000 in coverage for under $300 per month

 

  • Home Insurance — the cost depends on your location within New York and your home’s market value. On average, a $250,000 abode will cost under $1,000 in insurance per year. 

 

Veterans in New York 

 

According to the NYS Health Foundation, New York is home to almost 900,000 veterans, of which over half are over 65 years old. If you’re a veteran, contact the Division of Veterans’ Services at 1.888.838.7697 to know more about the benefits and services you may be eligible for. They should also be able to help you figure out employment options given your circumstances.

 

New Yorkers’ Financial Challenges During the Pandemic

 

The pandemic forced a break in New York’s fast-moving landscape. All the closures resulted in a catastrophic economic strain on both the state and an individual level. 

 

People were suddenly out of work. The healthcare front was stressed beyond its limits. Not enough people had health insurance coverage to counter expensive hospital fees. Small businesses had to close down left and right, forcing them to let go of employees—and causing the unemployment rate to rise. 

 

While the worst of the pandemic has mellowed down, its impact on New York is still as clear as day. The state’s total household debt skyrocketed from $313 billion to $14.96 trillion—the biggest culprit being mortgages. 

 

How Does Debt Consolidation Work? 

 

If you’ve been badly hit by the pandemic or made some bad financial decisions, you may be suffering from a large amount of consumer debt. In that case, it may be in your best interest to join one of the debt consolidation programs that pools all your existing debt into a single one with less interest. But not all loans qualify for this debt management program. Generally, you can qualify with: 

 

  • Credit card debt 
  • Personal loans or payday loans (unsecured)
  • Medical debt
  • Utility bills 
  • Shopping cards (gas, groceries, retail, and more) 

 

In some cases, you may also qualify with home improvement loans. But for the most part, home and auto loans are out of the picture. Meanwhile, student loans qualify for some free credit counseling services and debt consolidation. However, you’ll need to work with services that cater specifically to student loans. 

 

10 Signs You Need Debt Consolidation in New York

 

Debt relief and consolidation programs are not for everyone. They’re essentially strict repayment plans that require your financial focus. If you can’t commit to it, your credit score may take a negative hit—and you don’t want that to further compromise your position. 

 

1. You’re having trouble managing all your debt. 

 

Having the money but forgetting all your repayment dates is a formula for credit disaster. A lot of debt holders are on the right track to a better financial situation—with the only roadblock being their inability to manage their debt. Consolidating everything into one big debt is a great way to reduce the number of your repayments while taking advantage of lower interest. 

 

2. You can’t afford your debt at full price. 

 

Credit counseling services work with banks and other financial institutions to make consolidating possible. Doing so will reduce the amount you owe in interest, which can make your repayments more affordable. 

 

Use our free online calculators to find out how much time it will take to finally pay off your debt:

 

3. You’re determined to pay off your debt. 

 

Individuals go through an extensive background check before being qualified for a debt management program. If all you need is support from professionals to help you manage money and get back on track, then consolidating may be a good path to take. 

 

4. Your credit score is low. 

 

You can get into a debt consolidation program with a low credit score of under 600. Successfully going through the program also opens doors to increase that score, which can put you out of the red when dealing with financial institutions. 

 

5. Your interest rates are high. 

 

Having multiple debts with high interest can make it nearly impossible to pay them all off. However, lenders don’t want to lose money from delinquents either, so you can negotiate lower interest rates through a debt management program. It could save you hundreds of dollars per month.

 

6. You want to reduce the number of credit cards you own. 

 

Some people can’t help but swipe their credit cards, especially knowing they don’t have to pay it off right away. If you find that reducing your card ownership will help you become more financially responsible, consolidating them all into one may be a good idea. 

 

7. You’re determined to pay off your debt within a timeline. 

 

If you’re eager to repay your debt by a certain timeline, it may be a good idea to go for a free debt settlement consultation to see how experts can help. They can recommend debt consolidation loans that can adhere to your schedule while increasing your monthly payment savings with a possibly lower interest. 

 

8. You’ve maxed out all your credit cards. 

 

If you’ve maxed out all your cards and don’t repay, the chances are that banks won’t grant you any more credit cards. The only way to clean up your bad credit is to pay off your debt—and consolidating can help lower your monthly payments. 

 

9. You didn’t qualify for a balance transfer or relief. 

 

Balance transfers allow you to move your existing credit card debt into a 0% interest card for several months. But not everyone qualifies for this benefit. If you didn’t, then credit counseling services may recommend that you try debt consolidation instead.

 

10. You’re ready to change your financial situation. 

 

Some people manage to pay off their debts but relapse with their spending, causing them to spiral into another wave of repayments. If you’re ready to take charge of your finances and learn to budget, debt consolidation is a good idea. However, as this program requires you to commit to the monthly repayments, you need to ensure that you’re ready to take on the challenge. 

 

Getting debt consolidation in New York is a wonderful option if you’re struggling with managing multiple loans simultaneously. You also have a good chance of lowering your interest rate through this program, so take advantage of it if you believe you can commit to the repayments.  

 

How to Get Debt Consolidation in New York? 

 

Prudent Financial Solutions offers robust credit counseling services tailor-fitted to helping you manage your debt—and get out of it. Fill out this form to find the best program for you. Or give us a call at 1-877-612-3246, and one of our financial experts will be ready to help.