Missouri Debt Consolidation
Debt Help in Missouri
While most Americans have some measure of debt, whether it be a home loan or credit card bills, some eventually get to the point where they cannot manage their debt and need help. Those living in Missouri who reach this point find a variety of programs available to help them manage and control mounting debt. Before you assume that you have no recourse, explore these options.
Missouri Credit Counseling and Debt Consolidation
One thing that helps many who struggle with debt is accountability and education. Sure, we know debt is financially damaging, but do we really understand how bad it is? Missouri credit counseling services offer this accountability and education. They support debtors as they learn to budget and pay down their debt. They provide counseling and education about the dangers of debt. They sometimes provide additional support in the form of debt repayment plans and automatic debits to ensure that the debt gets paid.
Sadly, some companies operate unethically and call themselves credit counseling firms. These companies provide little support, and you will pay dearly for that small amount of support. While it is your job as the consumer to weed out the bad from the good, one way to take a step in the right direction is to find a company who is registered and approved to work with federal bankruptcy cases. You can find a list of Missouri credit counseling firms who have this approval at http://www.justice.gov.
As you go through the credit counseling process, talk to your counselor about the benefits of consolidating your debt. Debt consolidation can save money by placing all of your debts into on loan that has a lower interest rate than the debts as they stand. This can benefit you if you stop adding to the debts and focus on repaying the debt consolidation loan quickly.
Missouri Debt Relief Programs
Debt relief programs take debt relief a step further and negotiate with your creditors. Sometimes they can arrange new terms or debt settlements. Proceed with caution with Missouri debt relief programs, though. The services they offer are things you can do on your own, and some companies charge way more than they should in the form of upfront fees. Do your homework and make sure you are getting something of value for the money you put into the debt relief program.
Missouri Debt Collection Laws
The state of Missouri follows a series of laws called the Fair Debt Collection Practices Act. These laws were designed to offer protection to debtors against unfair practices of debt collectors. They do not apply to your actual creditors, however, just the actions of those working through collection agencies.
Under the FDCPA, debt collectors must not do any of the following:
• Fail to identify themselves and their employers.
• Call you at inconvenient hours. For most this is defined as before 8:00 a.m. or after 9:00 p.m.
• Call you or contact you in person if you have told them you have an attorney. In that case they must contact the attorney instead.
• Use threatening language, profanity, obscenities, or otherwise offend.
• Threaten your personal reputation.
• Do anything to make it obvious to others that you owe a debt. For instance, if they call someone else to look for your contact information, they cannot state why they called or that you have a debt. They also cannot send postcards or mail with markings on the envelope that indicate you owe a debt.
• Intentionally mislead, such as by indicating that you are going to be sued if your creditor has not indicated this is their intention.
The FDCPA gives you the right to stop debt collection actions. To do this, write to the debt collection agency asking them to stop contacting you. They must comply, and the only time they can contact you is to inform you of something that changes with your debt, like the beginning of legal proceedings. Send the letter via certified mail with a return receipt so you have proof that you sent it. Once the collections calls stop, you are still responsible for the debt.
If at some point your creditors decide to sue you for the money you owe them, they have the right to do so. However, they must start legal proceedings within a set period of time known as the statute of limitations. The statute of limitations for debts in Missouri is:
• Oral agreements – Five years
• Open accounts (like credit cards) – Five years
• Written contracts – 10 years
• Promissory notes – 10 years
Debt collectors in Missouri cannot charge more than nine percent interest. If your creditors choose to garnish your wages, the state’s laws protect 90 percent of your weekly income if you are the head of the household, and 75 percent if you are not.
Missouri Mortgage Assistance
Homeowners looking for help in purchasing their first home, getting a home with a tarnished credit rating, or dealing with the foreclosure process can get help through a variety of state and federal programs. The main mortgage assistance programs available in Missouri are through the Missouri Housing Development Commission. The Commission’s First Place loans offer affordable rates to first-time buyers with a variety of incentive programs. The Cash Assistance Loan is one of these incentives. It provides cash assistance to be used for down payment and closing costs.
Those with poor credit should look into the Federal Housing Administration (FHA) loan program. This loan program, which is offered through local banks, focuses more on income qualifications and employment status than credit history, because it has government backing. This makes it easier for those with poor credit to qualify.
If you find that you face an impending foreclosure, contact a HUD approved housing counselor. A list of Missouri housing counselors is available at http://www.hud.gov. The counselor will help you explore your options and stay in your home.
Missouri Debt Assistance Programs
Missouri does not offer any other specific programs to help those who have high debt. Focus on the programs currently offered to deal with your debt crisis.