Nebraska Debt Consolidation

Debt Help in Nebraska

If you are facing a challenging financial situation because of credit, you should know that you are not alone. Many people have been in the same situation you face, and some found help through programs offered by the state. Before you assume there is no help available, take some time to learn about these programs.

Nebraska Credit Counseling and Debt Consolidation

One way to deal with overwhelming debt is to go through a credit counseling program. Credit counselors work with debtors to help them create workable budgets and debt repayment plans, educate them about the way debt works, and teach them how to better manage their money. They provide accountability, sometimes even going as far as making payment arrangements and deducting debt repayment amounts from debtor’s bank accounts for them.

Finding a qualified, personable credit counseling firm is the key to success with this debt help solution. Nebraska licenses debt management companies, including several credit counselors. If you wish to seek credit counseling services, choose one of the companies on this list: http://www.sos.ne.gov.

Also, the federal government maintains a list of credit counselors who are approved to work with federal bankruptcy cases. Even if you are not planning to file for bankruptcy, you can use this list to weed out some companies you might be considering. While being approved for bankruptcy cases does not necessarily mean a company is the right one for you, or even necessarily a particularly good company, it does show that the company has shown a measure of competence in helping debtors with their problems. To view the list of companies approved in Nebraska list, visit http://www.justice.gov.

As you talk with your credit counselor, ask about options to consolidate your debt. Debt consolidation allows you to put all of your debts into one loan. The goal is to find a loan that has a lower interest rate than what you are already paying. Usually, by doing this you can pay off your debts faster while also saving money. If you do choose to consolidate your debts, make sure you do not then add to them once the credit cards are emptied, as doing this will make your difficult financial situation even worse.

Nebraska Debt Relief Programs

If you need more help than what is offered through credit counseling, browse the list of debt management firms for licensed Nebraska debt relief programs. These programs may go further than credit counseling programs, offering services like debt negotiation or debt restructuring. In these scenarios, the company actually negotiates with your creditors on your behalf to get better terms or a repayment settlement

Keep in mind that you have the right to do this completely on your own, and most debt relief programs cost quite a bit of money. Always research and weigh your options before signing up for these services. You have other options for dealing with debt in Nebraska, so do not assume that this is your only recourse.

Nebraska Debt Collection Laws

Nebraska, like most states, follows the Fair Debt Collection Practices Act, a series of federal laws that dictate what debt collectors can and cannot do when attempting to collect a debt.

Under the FDCPA, creditors must not do the following:

• Call with the intent to annoy, such as calling repeatedly in the same day.
• Call before 8:00 a.m. or after 9:00 p.m.
• Harass, threaten, or embarrass you when contacting you.
• Tell others about your debt, such as your friends or family or coworkers. They can contact these individuals to try to get contact information for you, but they cannot disclose the reason they need to contact you.
• Call you at work if this is not allowed by your boss. You must tell them this.
• Call you after you tell them you have contracted with an attorney.
• Use profane or offensive language when contacting you.
• Send you written communication in an envelope indicating you owe a debt, or send postcards.

If at any point you wish to stop these collection calls, you must write a letter to the debt collector asking them to cease. Once they receive the letter, they must comply. However, you may want to send the letter via certified mail to ensure that they receive it, and to give yourself proof that they did, in fact, receive it. Once they get the letter, they can only contact you to notify you about a change in your account, or to verify that they received the letter and will not make further communication. Stopping the collection calls does not, however, take away your obligation to pay the debt if it is, indeed, yours to pay.

In addition to the FDCPA laws, Nebraska state law prohibits your original creditor from contacting anyone about your debt who is not living, residing, or present in your household. The only exceptions are your spouse, your attorney, other creditors, or a collection agency. In other words, original creditors cannot contact friends or family who do not live with you about your debt. This rule does not apply to debt collectors, who must abide by the rules in the FDCPA.

Nebraska creditors may file lawsuits against those with delinquent debts, but they must do so within the statute of limitations time period. The statute of limitations is as follows:

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

State laws protect 85 percent of your disposable weekly earnings if you are the head of the household, and 75 percent or 30 times the federal minimum wage (whichever is greater) if you are not.

Nebraska Mortgage Assistance

First time homebuyers looking for assistance in purchasing a home should start by visiting the Nebraska Investment Finance Authority website at www.nifa.org. The NIFA offers a variety of mortgage assistance programs including low-interest and low-down payment mortgage programs and mortgages designed to help those living in rural areas. If you are not a first-time buyer but have a poor credit rating, talk to your lender about FHA mortgage programs in your area, which focus more on income than credit rating.

If you are facing foreclosure in Nebraska, try calling 211. This is an informational service offered in 38 counties to help homeowners in distress find the help they need. If your county does not offer 211 service, call 402-444-6666 to access the same information. Check www.ne211.org to see if your area qualifies.

Nebraska Debt Assistance Programs

Nebraska does not have other assistance programs for those struggling with debt. Some who qualify for public assistance may find that this additional financial support frees up money they can use to pay down their debts.