Florida Debt Consolidation



Dealing with overwhelming debt quickly turns into a financial crisis when debt rises to a point that you cannot make even your minimum payments. Before you get to that point, or if you are already there, learn what debt help and assistance options are available to you through the state of Florida.

Florida Debt Consolidation & Credit Counseling

When debt becomes overwhelming, it often turns into an emotional catalyst for family disagreements. Before you allow debt to overwhelm your family, turn to a credit counseling service to help you evaluate your situation and get back on track.

The federal government approves credit counselors in every state to work with those headed to bankruptcy court. These companies have a proven track record in the debt relief industry. To find a list of approved credit counseling agencies in Florida, visit http://www.justice.gov/ust/eo/bapcpa/ccde/CC_Files/CC_Approved_Agencies_HTML/cc_florida/cc_florida.htm. Remember, working with one of these companies does not ensure that you are not going to pay too much for services. Always do your homework before signing up with a particular company.

Sometimes, your credit counseling agency will recommend debt consolidation. You can consolidate your debts with any Florida bank that is willing to loan you the money. Choose a loan program that offers a much lower interest rate than you are already paying. This will make your minimum payments more affordable and ease your financial stress. Just remember not to add to your stress by taking on more debt.

Florida Debt Relief Programs

Florida debt relief programs aim at finding a more aggressive solution to a debt problem. Often these companies will work with consumers to create a debt settlement with the creditors. Of course, these are things that consumers can do on their own without paying a third-party to help, but many find that they lack the necessary negotiation skills for a successful debt negotiation. In these situations, a quality debt relief program can help.

That said, debt relief companies often charge much more than they should for their services. In 2008 the Attorney General of Florida opened a consumer protection initiative targeting five debt relief companies that used improper tactics to prey on unsuspecting debtors. This shows that consumers need to do their homework before signing up with a debt relief program, because many are not as honest as they first appear. Make sure you learn exactly what services you will receive from the program, and exactly how much it will cost you. Do not pay a lot of money in upfront fees for a program that may or may not be successful. Consider looking for a debt relief option that allows you to pay on a commission basis.

Florida Debt Collection Laws

Florida’s debt collection laws are designed to protect both consumers and creditors. For creditors, it outlines appropriate debt collection techniques that they can, and should, use to collect what is owed to them. For consumers, debt collection laws protect them against unscrupulous, harassing collection options.

Under the state and federal debt collection legislation, a debt collector has the right to contact you by mail, in person, through email, over the telephone, through a fax, or by a telegram. However, this communication cannot be harassing in its frequency or tactics. Also, you may not be contacted at work if the debt collector knows this is not allowed, nor may any debt collector call before 8:00 a.m. or after 9:00 p.m. No matter when or where a contact is made, abusive language is prohibited.

The debt collector must send a written notice within the first five days after they make the first contact with you. In this notice, they must state the amount you owe, the name of the creditor, and what you can do if you believe they are wrong. You must write the collection agency within 30 days of this first contact if you do not believe you owe the money, and the debt collector cannot contact you after this unless they have sent proof of your debt.

If you feel that a debt collector has not behaved in accordance with the law, the Florida Attorney General instructs you to write to the Florida Department of Financial Services or the Federal Trade Commission in Washington, D.C. You also have the right to take legal action against the debt collector, which may end up giving you a cash award.

Florida Mortgage Assistance Programs

For first time homebuyers looking for an affordable mortgage option, Florida Housing’s first time homebuyer program offers 30-year fixed rate loans for those who have a credit score of 600 or higher. Those with a lower credit score may need to seek the help of the Federal Housing Administration’s FHA loan program, which looks more at income and financial stability than credit score when determining eligibility.

Florida does not have a state down payment assistance program. However, many county or cities offer a State Housing Initiatives Partnership (SHIP) program. This program offers assistance in down payment and closing costs to middle and low-income families throughout the state. You can find your nearest SHIP office at http://apps.floridahousing.org/StandAlone/FHFC_ECM/AppPage_SHIPLGContacts.aspx.

Florida homeowners who are facing foreclosure have a few resources available to them too. First, if you seek the help of any company that offers loan modification services, check with the Florida Office of Financial Regulation. In an attempt to cut down on mortgage foreclosure fraud, the state implemented a law that requires all companies offering such services to have an active license with the state. This prohibits them from collecting up front fees and then running away with the services and offering no help.

To get immediate assistance in dealing with foreclosure, Florida homeowners can call the HOPE NOW hotline 24 hours a day at 1-888-995-HOPE. The Department of Housing and Urban Development (HUD) also publishes a list of approved housing and mortgage counseling services for the state. These two resources are the first place to go if you need help with your mortgage payment options.

Florida Government Assistance Options

The main assistance offered by the Florida government for people struggling with debt is education and protection from fraud. The Florida Attorney General’s website (http://myfloridalegal.com/) has numerous articles offering free advice for those dealing with debt.

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