Montana Credit Card Debt

Home to Yellowstone National Park, Glacier National Park and 77 of the mountain ranges in the Rocky Mountains, Montana definitely lives up to its epithet as the "Land of Shining Mountains." Furthermore, with its beautiful ski resorts such as Big Sky, popular cities including Billings and Helena, and historical background, including the participation in American Civil War, MT attracts both locals and tourists alike. Although, like others, Montanans have certainly felt the economic pinch caused by the global recession, Montana has managed to stay ahead of the game. Even though tourism and other industries have suffered a little, MT's largest resources, including agriculture, manufacturing, mining and federal government continue to thrive. But all is not perfect on the Northern front. In fact, when it comes to the current economic and credit ranking of Montanans, MT is definitely not the "Land of Shining Credit."

Big Sky and Bigger Credit Card Debts

MT may be one of the smallest states in regards to population but it certainly is big on debt. In fact, Montanans currently have $7180.53 in credit card debt. Furthermore, the annual APR for credit cards is 22.02%, the highest state average APR in the nation. So, let's do the math. For the average Montanan who is paying off a debt of $7180.53, they will pay almost $1600.00 in interest annually on top of this amount. And this is if they are paying the debt off in full without looking into the additional costs such as annual fees, penalties and cash back charges.

Credit card debt can not only affect your daily life, but also your credit score in general. In fact, payment history and outstanding debt have a huge impact on your FICO score. The average Montanan has a FICO credit score of 701 which is actually one of the highest in the nation. Anything above 700 is considered a "good credit score" which means Montanans often enjoy lower interest rates, better loan terms and lower monthly payments. However, even with these factors, many Montanans are still struggling with the monthly bills on important payments such as their mortgage, car and electricity. For those Montanans who do not have a good credit score, it can be even harder to keep up with these increasing living expenses.

However, there is more at stake than just your FICO rating. Although MT currently ranks 44th out of 50 states in the number of foreclosures, families are still struggling to make the payments. Furthermore, MT currently has a tax burden of 8.6% interest which can certainly add up for all households. In regards to household income, Montana is in the 10th lowest state with a household income of $43,531.00 in 2007. This is well below the national average of $50,740.00. In 2005 Montana ranked 39th in the nation in regards to per capita personal income at $30,790.00 in 2006. Again, this is well below the national average of $36,714.00.

The Facts on Debt Consolidation

For many Montanans the best option when it comes to improving credit scores and eliminating debt is debt consolidation. Instead of worrying about several different monthly payments from a variety of credit agencies, debt consolidation loans allow you to combine all your current bills and debts into one monthly payment. There is no more stress about ‘forgetting' to pay the mortgage; there are no more battles with debt collectors; and there are no more reasons to suffer up a mountain of debt. Consolidation provides a fast and easy approach to debt as well as proven advice and security when it comes to your financial situation. You can reduce those red numbers and start living in the green.

Is Debt Consolidation the Right Choice for You?

To find out if consolidating your debt is the answer to your financial woes, consider these three questions:

• First of all, do you feel it's next to impossible to pay off your credit card debt?

More than half of all Americans do not pay their credit card bill off in full each month with 11% only paying the minimum amount. For those who are struggling to get the credit card back to zero, you are actually working a lot harder than you may realise. The reason is because of interest. By paying only the minimum amount, most of the money you are spending is paying off interest rather than the actual debt. This is why it can seem impossible to get your credit card debt down every month. When you consolidate your debts, interest rates are lowered, often by 50%. This means it's possible to pay off the debt faster without accumulating more interest in the process.

• Next question: do you have trouble keeping track of what's going out and what's coming in every month?

Keeping track of your finances can be hard, especially when you have a career, a family, a home and, well, a life! Debt consolidators do the financial homework for you. They offer expert advice on saving and spending so you get a more accurate portfolio of your financial situation. Furthermore, as debt consolidation combines all your payments into one monthly installation, you do not need to sort through the mail every day to determine which bills are overdue and which bills can be put on hold until next month. Debt consolidators can also help you make a financial spreadsheet so you know everything that is coming in and going out. Keeping track of all those expenses, including your daily bus pass, your weekly movie tickets and your monthly gym membership, will help you see where your money is going and where you can afford to cut back.

• Finally, are you having trouble keeping up with your living expenses each month?

With the mortgage, the car repayment, the phone bill, the electricity and the mound of other monthly bills, many Montanans are left with no extra cash for living essentials like food, fuel and the occasional fun night out. By the time the bills are paid, are you dipping back into your credit card just to survive for the rest of the month? This is a common problem that more and more people are faced with. Consolidating your debt offers you the perfect solution. These types of loans have numerous different payment options offering you a personal solution. Usually they have extended payoff terms as well as lower monthly payments so you can manage your bills as well as your life. Furthermore, if something changes in your financial situation, for example, if you lose your job or have a baby, debt consolidators can reassess your situation and find a reform that works for you.

There is no denying that Montana is a beautiful state with plenty of outdoor recreation, natural wonder and metropolitan delights. However, for many Montanans, it's impossible to enjoy these daily splendours. While tourists enjoy the snowy view from the top of the Great Divide, you are blinded by the white light of debt. A debt consolidation loan will not magically make the debt disappear; however, it can dramatically reduce the stress and the accumulating interest that comes with credit card debt. Debt consolidators can guide you down the mountain of debt and onto the plateau of financial success.