Hawaii Debt Consolidation
Debt Help In Hawaii
When living in Paradise starts to feel like living at the mercy of bill collectors, you may be in need of some debt help. No matter what the reason you are facing a debt crisis, a few Hawaii debt relief programs can get you back on track as you plan for your financial future.
Hawaii Debt Consolidation and Credit Counseling
One of the first options most Hawaiians consider when struggling with debt is working with a credit counselor. Credit counselors offer support and advice as you work your way out of a difficult debt situation. Most of these companies are non-profit organizations. However, this does not mean that offer their services free of charge. You will pay something for the credit counseling services, so always learn of these charges upfront.
One way to ensure that you are working with a good credit counselor is to choose one approved to work with those headed to bankruptcy court. You can find a list of these by searching for “Hawaii” at http://www.justice.gov.
Another early option some debtors consider when struggling with a large debt load is debt consolidation. Debt consolidation programs allow people to combine their debts into one loan. If the loan has a lower interest rate than the rate on the debt, which it likely will if the debt is primarily in credit cards, then the debtor saves money and likely has a more affordable monthly payment. Shop carefully for loans to ensure that you are getting the best possible rates and terms.
Hawaii Debt Relief Programs
A debt relief program is run through a company that serves as a go-between between you and your creditors. They handle the negotiations, often working to get better terms or even a debt settlement for you. These are all things you can do on your own, but if you find it intimidating to call your creditors, then you may benefit from hiring someone else to do it.
And you will be hiring the debt relief company. No company is going to offer these services free of charge, and the truth is that many charge way more than they should to help you. Do sufficient research to ensure that the company is not taking advantage of you. Learn about all costs before you begin a program, and be cautious of companies that charge an upfront fee for their services or promise that they will be able to accomplish something for you.
Hawaii Debt Collection Laws
If your creditors have turned to a debt collector to attempt to reclaim what you owe them, there are limits as to what the debt collector can do in an attempt to collect the debt. Hawaii follows the Fair Debt Collections Practices Act, a federal law limiting the actions of debt collectors. Under the fair debt collections act, creditors or debt collectors cannot harass you as they try to collect your debt. They cannot call in an attempt to annoy or pester, nor can they threaten your reputation or safety as they try to collect what is owed. Specifically, the following actions are not allowed:
• Debt collectors may not call at inconvenient times, which are defined as before 8 a.m. and after 9 p.m.
• Debt collectors can call you at work, but they must not do so if they have been informed that your employer doesn’t allow it.
• Debt collectors cannot use profanity or other harsh language
• They must be open and truthful at all times
• If you are working with an attorney, they must talk to the attorney instead of you.
You do have the right to stop the collections calls, but not the collections actions. You still have to pay your debt, but if you want letters and phone calls to stop, you must tell the collections agency so in writing. Then, they can only contact you if something is changing, such as the beginning of legal proceedings.
In addition to these federal laws, Hawaii has some laws of its own that affect debt collectors. These are as follows:
• The original creditor does not have to follow the FDCPA provisions about required disclosures, such as having to verify the debt’s viability.
• Debt collectors cannot try to convince the debtor that the debt was used to pay for life necessities if it really wasn’t.
• Debt collectors cannot try to get the debtor to pay the collections fee.
• Debt collectors cannot claim they have something valuable in their possessions to try to lure the debtor to them.
• Debt collectors cannot try to pay any debts discharged in bankruptcy unless they disclose that the debtor is not legally obligated to pay the debt anymore.
All types of debt, including oral agreements, written contracts, promissory notes, and open accounts, have a statue of limitations of six years. This means that lenders must start legal proceedings within six years of a debt going into default. Hawaii also places protection on a debtor’s wages for 31 days.
Hawaii Mortgage Assistance Programs
Hawaii does not offer much in the way of state-based mortgage assistance. Hawaii’s Homeownership Assistance programs are offered primarily through HUD. Section 8 housing vouchers, for instance, work with those who have low to moderate incomes as they attempt to buy a home. Those who are trying to buy a home with lower credit scores can look into Federal Housing Assistance loan programs, and qualified military personnel can get affordable home loans through the VA home mortgage program. Those interested in buying a home but looking for a little help should talk to a HUD certified housing counseling agency.
Hawaiians who are facing foreclosure have a few options to consider. HUD certified housing counseling agencies do offer advisory services as homeowners enter foreclosure. Hawaiian residents may be able to refinance their homes through the Make Home Affordable federal program, which allows consumers to refinance in attempt to make the mortgage payment more affordable. Additional foreclosure advice and counseling is available by calling the Homeowner’s HOPE Hotline at 888-995-HOPE.
Hawaii Government Assistance
Hawaii does not offer many debt relief programs through the state. Consumers struggling with debt should look into federal aid options of public assistance programs in Hawaii that can help free up some money to use toward debt.
