Hawaii is one of the states in the US with the highest cost of living. The cost of living is estimated to be double the cost of other expensive states in the US. On top of this, taxes are high in Hawaii. This is a state that does not have job growth that is worth noting because of lack of space and because it is anti-business.
Hawaii ranks 15th in total debt in the US, with the average debt being $6,937 per person. Though the average credit score of the state is 691, its residents are unhappy about the cost of living.
Utilities, groceries, transportation, and health care are all expensive. Plenty of people attribute this high cost of living to the import of goods from the mainland.
Even basic utilities like electricity is twice as high as the prices in Alaska, which is the next most expensive state in the US. People work 2-3 jobs in Hawaii, just to pay the rent, and because of the ACA health care law, lots of full time jobs have been eliminated.
Personal Loans for Debt Consolidation
A new analysis sheds light on Hawaii having the second highest debt-to-income ratio in the US. Hawaiian residents have a median income of $31,905 annually, but have a debt balance of $67,010.
Majority of the debt may be because of residents trying to pay for basic needs. Just paying a mortgage, or housing rental can cause a crater in a Hawaiian resident’s pocket.
When cost of living and debt get together, it is a bad combination, and can send people into debt further. High debt is not only difficult to pay down, but also damages a person’s credit score.
In such scenarios, consolidating the debt makes sense. If the debt from several cards can be consolidated, it will give you an idea of how much money is needed to pay down the debts.
The next step would be to try and get a personal loan for that amount. The approval of the loan amount, the interest rate and the term might depend on your credit score. Once the debt is paid off, you will have to just pay off the loan.
Since personal loans come with fixed term and fixed interest rate, paying them back might be a lot easier.
There may be lenders who might be okay with lending to people with bad credit. However, the interest rates might be high, and the term longer. In this case, you will have to check if it is worth consolidating your debt, and taking out a personal loan.
There are several debt counselors and experts who can give you advice on this. It would be a prudent idea to go to counselors who have been approved by the government to make sure you get sound advice. But don’t assume anything, after the ACA health care debacle and about a thousand other examples, you cannot trust government that much.