Massachusetts Debt Consolidation
Debt Help In Massachusetts
When you reach the point that you cannot pay your debt and also feed your family, you may need to seek the help of Massachusetts debt help services. From mortgage assistance to help learning to budget, you will find a variety of programs available to assist you in digging your way out of debt problems.
Massachusetts Credit Counseling and Debt Consolidation
Credit counselors work with consumers to help them learn to manage their debt through budgeting and pay down planning. Credit counseling services do cost money, but for some consumers they offer invaluable help in learning to control debt. Those interested in Massachusetts credit counseling services should look at the list of credit counseling firms approved to work with federal bankruptcy cases. This list is here: http://www.justice.gov. Starting with a firm on this list gives the consumer confidence that they are working with a qualified company.
The state of Massachusetts warns consumers about companies posing as credit counseling firms who actually work illegally in the state, charging high fees to consumers and offering little help for their debt problems. The state recommends that consumers work with credit counseling agencies registered with the Division of Banks. They also recommend working with credit counselors that require customers to sign full disclosures that outline all fees and costs of their services, and that companies be bonded or insured against customer and state penalties. As you look for a Massachusetts credit counseling service, look for one with these qualifications.
Debt consolidation is just one tool credit counselors may recommend. Debt consolidation involves lumping all debts into one loan program. Consumers benefit from having fewer bills to keep track of each month, and the consolidation loan often has a lower interest rate than the debts themselves, which saves the consumer money.
Massachusetts Debt Relief Programs
Some companies call themselves debt relief programs, rather than credit counseling. These companies may work even more on behalf of the consumer. They may call creditors to help seek a debt settlement, or they may seek better terms on the consumer’s behalf.
While these are helpful services, you need to make sure you are not paying too much for them. Remember, debt relief companies cannot do anything for you that you do not have the authority to do yourself. You can call your creditors and seek a debt settlement or better terms, if you have strong negotiating powers, so make sure the cost of these services is worth the help you receive.
Massachusetts Debt Collection Laws
Massachusetts follows the Massachusetts Attorney General’s Debt Collection Regulations, a law that outlines the way in which debt collectors can interact with debtors when attempting to collect a debt. Under this law, creditors, collection agencies, and debt collectors may not:
- Call a debtor at home more than twice per debt in any seven-day period.
- Call at someplace other than your home more than twice per debt for any 30-day period.
- Call at work if you requested that they not. Oral requests are valid for 10 days. Written requests are valid indefinitely.
- Call without identifying themselves and the creditor.
- Use obscenities or profanities.
- Contact you if you have told them you are represented by an attorney.
- Falsely threaten legal action
- Tell anyone details about your debt, other than you, without your written consent.
- Send anything in the mail, like a postcard, that indicates you owe a debt.
- Ask for post-dated checks.
- Visit in person outside of normal waking hours.
- Visit your home more than once in each 30-day period per debt.
- Call outside of normal waking hours, or 8:00 a.m. to 9:00 p.m.
If your creditor has documentation that they claim proves you owe the debt, they must allow your attorney to inspect it.
You have the right to stop debt collection actions. All you need to do is inform the creditor and the collection agency, in writing, that you want the contact to stop. They must comply. However, you still owe whatever it is that you owe, and your creditor could pursue legal action. If they choose to pursue legal actions, they must do so within the statue of limitations time frame, which is six years for all types of accounts. The maximum that a debt collection agency can charge is six percent, and they may not garnish more than 75 percent of your wages each week, with a minimum of $125 protected by state laws.
Massachusetts Mortgage Assistance
Whether you are purchasing your first home or looking for help in keeping our home out of foreclosure, Massachusetts mortgage assistance programs may be able to help. First time home buyers who make $48,000 or less may be able to use the Soft Second Mortgage Program to purchase their first home. Under this program, buyers must make at least a three percent down payment, and then the state offers a subsidized second mortgage to use for the remaining down payment and any closing costs. This program is offered through the Massachusetts Housing Partnership (617-330-9955).
Families who make at or below 80 percent of the median income level in their area may qualify for the First Time Home Buyer program though the Housing Development Division of the Department of Housing and Community Development. This offer down payment assistance to buyers looking to purchase in specified communities. To see if your community is in the program, visit http://www.mass.gov/.
For families who are struggling with low credit ratings, the Federal Housing Administration offers government-backed mortgage programs. Because the mortgages have government backing, they present less of a risk to the lender, thus making it possible to get a home loan with less than perfect credit.
For homeowners who face impending foreclosure, the state offers a Five Point Foreclosure Prevention Program. Homeowners can enter this program by calling 888-995-HOPE at any time of the day, any day of the week, to contact Neighborworks’ Center for Foreclosure Solution.
Massachusetts Government Assistance Programs
The state of Massachusetts offers a variety of informational resources about credit and debt at http://www.mass.gov/. Consumers should check these for any other available assistance.