Iowa Debt Consolidation

Debt Help In Iowa

Have you reached the point where you have too much debt? If you cannot even make the monthly payment on your debt while paying your other monthly expenses, you need to find help. Iowa offers a variety of assistance programs designed to help its residents with their debt concerns.

Iowa Credit Counseling and Debt Consolidation

If you have determined that you fall into the category of having too much debt, start by talking to an Iowa credit counseling agency. Iowa credit counselors are trained to help consumers learn to manage their debt, work within the parameters of a budget, and pay down their debt as quickly as possible. Choose a non-profit credit counseling agency after doing some research into the services they offer and the cost involved.

One way to ensure that you are working with a quality company is to choose one that has earned Justice Department approval to work with bankruptcy cases. The Iowa credit counselors on this approved list are found at http://www.justice.gov/. The federal government does not regulate this industry, but the Justice Department’s stamp of approval increases your level of confidence in the company’s reputation.

Your credit counselor may advise you to consolidate your debt. A debt consolidation loan lumps all of your debt into one loan product. Before signing up for a debt consolidation loan, make sure you have the discipline necessary to stop using your credit cards or other credit options once you have the consolidation loan.

Iowa Debt Relief Programs

If you have been struggling with debt for a while, you may have come across Iowa debt relief companies. These companies offer to help you negotiate with your creditors. The goal may be to reach a debt settlement, or it may be to change your repayment terms to something more favorable.

This is something you can do completely on your own. However, you may feel more confident having one of the Iowa debt relief programs on your side. Proceed cautiously, though, because these services do cost money. Make sure you are not paying money that you do not have for services you can do for yourself.

Iowa Debt Collection Laws

Iowa follows the federal debt collections law entitled the Fair Debt Collection Practices Act. This law outlines the way in which debt collectors can proceed with their task of getting what you owe to your creditors. Under this law, debt collectors cannot do the following:

• Call you with the intent to harass or abuse.
• Make phone calls before 8:00 a.m. or after 9:00 p.m.
• Call you at work unless your employer allows this.
• Use foul language, profanity, or racial slurs when contacting you.
• Frequently call your friends and family to seek your contact information.

In addition to the laws outlined by the FDCPA, Iowa law states that:

• Your creditor and debt collector cannot tell third parties about your debt.
• Your creditor and debt collector cannot put you on any “deadbeat” list.
• Your debt collector cannot coerce you to pay a debt that has been discharged in bankruptcy unless they clearly explain that you are not liable to pay this debt.
• Debt collector must state the name and address of the business where the debtor owes the money.
• The debt collector cannot try to get the debtor to pay other charges, like the collection’s fee, unless the law allows it.

If you feel that the debt collector has overstepped these boundaries, contact the FTC (www.ftc.gov) to learn about your rights. You may be able to hold the debt collections firm legally liable for these actions.

Iowa has a statute of limitations in place to protect debtors. The statute of limitations states that creditors have a set period of time in which they can sue the borrower for a default account. The statute of limitation period starts on the month after the account goes into default. These limitations are as follows:

• Oral agreements – Five years
• Written contracts – Ten years
• Promissory notes – Ten years
• Open accounts (credit cards) – Five years

The maximum interest rate that collections agencies can charge is five percent in Iowa. Also, if wages are going to be garnished, 90 percent of the debtor’s expected annual earnings are protected under Iowa debt help laws.

Iowa Mortgage Assistance

Whether you are finding yourself headed toward foreclosure or eagerly awaiting your first home purchase, Iowa mortgage assistance programs can help. For homeowners who find foreclosure knocking at their doors, the Iowa Mortgage Help Initiative can help. This is a free mortgage counseling resource offered to Iowa residents. Those needing assistance should call 877-622-4866 or visit www.iowamortgagehelp.com. The sooner distressed homeowners call, the better the available help will be.

The Iowa Finance Authority (www.iowafinanceauthority.gov) offers a variety of home loan options to homebuyers looking for affordable terms and rates. IFA loan products have lower-than-market interest rates on fixed 30-year loans. They are available to first-time homebuyers and homebuyers who already own a home and are looking to purchase again. Many of these loans do not require a down payment. First time homebuyers should look into the FirstHome program, which offers a cash assistance of up to $2,500 for closing costs. Those who are not first time buyers or do not qualify for the FirstHome program can get affordable rates through the Homes for Iowans program.

Iowa residents who wish to try to buy a home but find that they do not have the necessary credit rating to qualify may benefit from the federal FHA home loan program. This program offers government backing to homeowners that allows them to get a home loan without high credit ratings. HUD also offers a variety of home purchasing programs for Iowa residents. To learn more about these options, visit www.hud.gov or www.fha.com.

Iowa Government Assistance Programs

The Iowa state government offers little else in the way of debt help services. The government does caution consumers against the predatory practices of some debt relief or debt settlement companies. Consumers can take advantage of other government assistance programs to help them with their monthly expenses as they work their way out of debt.