Settling Your Debt - By negotiating with your credit card companies, it is possible to reduce your debt by 40-60% of the outstanding balance. Your monthly payment can be reduced significantly and you are able to pay off your debt in as little as 12-30 months. It is an aggressive approach to debt reduction with different disadvantages. Therefore, any consumer who can manage his or her credit card debt by making more than their minimum monthly payment, debt settlement or negotiation probably isn't their best debt relief option .
Debt Management Plans - Also referred to as credit counseling, in this type of program you allow a third party debt relief agency (typically a non-profit) to manage your debt for you. They are able to negotiate with credit card companies to lower your interest rates. The average repayment plan lasts between 4-5 years before you are debt free. Much like when one negotiates debt, however, there are several negative effects that should be considered prior to using this type of service.
To get matched with a leading provider of debt consolidation services, simply fill out a form for a free consultation from an expert.
Unsecured Personal Loans - This is in its very essence "Robbing Peter to Pay Paul." As maintained throughout our website, this is a bad debt solution for several reasons. One, the interest on these types of loans is extremely high, and as a result, paying down or getting rid of the balance is difficult. Two, since no behavior modification is required of the debtor, oftentimes they will run into credit card problems again several years down the road.
How To Deal With Debt Collection Agencies
First and foremost, learn the laws dealing with debt collectors. The Fair Debt Collection Practices Act (FDCPA) was legislated to protect consumers from overly aggressive collection tactics. You can get information about this here: credit card debt collection. If your bad, old or unpaid debt was charged off several years ago, it is also possible that the statute of limitations expired, and therefore, the creditor is not allowed to pursue legal action against you for the debt. The following is a list of states and their applicable statute of limitations for credit card debt: (Note-The author of this is not a lawyer or attorney and makes no claims or guarantees about the accuracy of the information herein. For legal advice regarding your situation, please consult a lawyer licensed in your state).
- Alabama : 3 years
- Alaska : 6 years
- Arizona : 3 years
- Arkansas : 3 years
- California : 4 years
- Colorado : 6 years
- Connecticut : 6 years
- Delaware : 3 years
- District of Columbia : 3 years
- Florida : 4 years
- Georgia : 4 years
- Hawaii : 6 years
- Idaho : 4 years
- Illinois : 5 years
- Indiana : 6 years
- Iowa : 5 years
- Kansas: 3 years
- Kentucky: 5 years
- Louisiana : 3 years
- Maine : 6 years
- Maryland: 3 years
- Massachusetts : 6 years
- Michigan : 6 years
- Minnesota : 6 years
- Mississippi : 3 years
- Missouri : 5 years
- Montana : 5 years
- Nebraska : 4 years
- Nevada : 4 years
- New Hampshire : 3 years
- New Jersey : 6 years
- New Mexico : 4 years
- New York : 6 years
- North Carolina : 3 years
- North Dakota : 6 years
- Ohio : 4 years
- Oklahoma: 3 years
- Pennsylvania : 4 years
- Rhode Island : 10 years
- South Carolina : 3 years
- South Dakota : 6 years
- Tennessee : 6 years
- Texas : 4 years
- Utah : 4 years
- Vermont : 6 years
- Virginia : 3 years
- Washington : 3 years
- West Virginia : 5 years
- Wisconsin : 6 years
- Wyoming : 8 years
Questions, Tips, & Advice About Credit Card Debt
1) Since my spouse's death last Christmas, I have been getting hounded by collection agencies about his past due or delinquent credit card payments . My question is: Do I have to pay it if he died?
If your husband or wife is deceased, your responsibility for paying depends on what state you live in and when the debt was accumulated. If you live in the following states, you are not obligated to pay it:
- Alabama
- Arkansas
- Alaska
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Utah
- Vermont
- Virginia
- West Virginia
- Wyoming
If you live in the following states and the debt was accumulated during your marriage, you are legally obligated to pay it back.
- Arizona
- California
- Idaho
- Louisiana
- Nevada
- New Mexico
- Texas
- Washington
- Wisconsin
(PayingPaul.Com is not a credit card debt law firm or an attorney, and therefore this should not be constituted as legal advice. PayingPaul.Com makes no guarantees about the accuracy of anything on this page. Please consult an attorney about your situation.)
2) What are the consequences of not paying my credit cards?
Well, for one your credit will be impaired as a result of late payments . From a legal standpoint, a credit card company is reserved the right to sue you to collect the full balance. Although this does not happen quite often, it is possible and if they win a judgment in court, your wages can be garnished, a lien can be put on your home or car, and your bank account can be levied.
3) What options are available for teens and college students who owe too much credit card debt?
Unfortunately, in the eyes of the credit card companies, they are treated the same as adults in a similar predicament. To get matched with a pre-qualified provider of debt assistance, simply fill out a form to start getting out of debt.
4) What are the leading causes of credit or debt problems?
Overspending, divorce, and medical problems are typically cited as the three leading causes of bankruptcy.
5) What is considered high or excessive credit card debt?
This depends on the person mainly. After all, if you owe $100,000 in total credit card debt, but you earn several million dollars per year, your situation is far less grave than someone who owes $50,000 in credit cards, but earns just over $110,000 per year. Even if someone owes $10,000 in bills, they may actually need to reduce their credit card debt more if the monthly payment is too much. In other words, what's high or excessive depends a lot on the individual financial circumstances.