Nevada Debt Consolidation
Debt Help in Nevada
Whether you are in financial trouble due to foolish spending or simply because you had unexpected events occur in your family, if you find that you have more debt than you can handle, the state of Nevada has some programs that may be able to help.
Nevada Credit Counseling and Debt Consolidation
Credit counseling services provide support and accountability to Nevada residents struggling with credit card debt. These companies will teach you how to manage your money, avoid debt, and pay back the debt that you currently have.
Many companies claim to offer credit counseling services, but some are more interested in growing their bottom line than actually helping you. Before you sign up for credit counseling services, do your research to ensure that you are working with a qualified company. One way to do this is to choose only companies listed on the federal Justice Department list of credit counselors who can work with bankruptcy cases. You can use these companies even if you are not filing bankruptcy. Choosing a company that has federal approval can give you some peace of mind about the process. You can find this list here: http://www.justice.gov.
Once you find the right credit counselor, ask them about your options for saving money as you pay down your debt. One option might be to consolidate your debts into one loan product with a lower interest rate than your current loans or credit cards. This may not work for all situations, but if you have high interest cards, you can save quite a bit of money by consolidation. Make sure you are confident in your ability to avoid debt in the future before you consolidate, because consolidating while still adding to your debt is a financially dangerous mistake.
Nevada Debt Relief Programs
Sometimes support and advice is not sufficient help for those struggling with debt. If necessary, consider a Nevada debt relief program. Most of these programs are offered through debt relief companies. These companies serve as the go between for you and your creditors, negotiating deals and debt settlements to help you get rid of your debt faster. Keep in mind that these services cost money and are things you can do without the help of a go between. If you feel that your negotiation skills are less than ideal and you can find a company offering these services at an affordable rate, then go ahead and try it.
Nevada Debt Collection Laws
Nevada follows the Fair Debt Collection Practices Act, which governs the way in which debt collectors must act. This law states the following:
- Debt collectors may contact debtors by phone, in writing, in person, or through a telegram to demand payment or negotiate terms of payment on behalf of creditors.
- If you dispute the debt, you have the right to ask the collection agency to verify the debt. You must make this request in writing within 30 days of receiving notice of the debt collection actions.
- Debt collectors may not initiate contact before 8:00 a.m. or after 9:00 p.m.
- You can tell the debt collector to stop contacting you at work if this is not allowed by your employer, and the debt collector must comply.
- Debt collectors may not harass you or use threats of physical harm.
- Debt collectors may not talk to or send letters to other people that indicate you have a debt. They can, however, contact others to try to find a way to contact you, as long as they do not advertise your debts.
- Debt collectors may not use obscene or profane language.
- They must not send false information, such as threatening a lawsuit that is not pending, in an attempt to collect the debt.
- Collection agencies may not send mail that obviously shows that you owe a debt. This includes postcards.
In addition to the laws outlined in the FDCPA, Nebraska has its own debt law. Under this law, debt collectors are prohibited from acting as consumer debt counseling services or debt adjusters while also fulfilling the role of a debt collector. Also, debt collectors cannot charge more than 2 percent above the prime rate from Nevada’s largest bank on January or July 1st, and this fee must be added to the principal balance prior to the collection agency receiving the debt.
If your creditors wish to sue you for your debt, they can do so, but they must do so within the statute of limitations time period. These time frames are:
- Oral agreements – Four years
- Written contracts – Six years
- Promissory notes – Six years
- Open accounts, like credit cards – Four years
If your creditors want to garnish your wages, Nevada’s wage protection laws protect the larger of 30 percent of the federal hourly minimum wage or 75 percent of your disposable weekly earnings.
Nevada Mortgage Assistance Programs
Whether you are buying a house for the first time or need some help to avoid foreclosure, the state has several programs for you to consider. The Nevada Housing Department offers a down payment and closing cost loan program that gives qualified first-time buyers in targeted areas access to loans for up to $4,500 that can be used as down payment and closing cost funds.
For those buying a home who have less than perfect credit, the FHA low-down payment mortgage program may be able to help. This loan has government backing, so it relies less heavily on your credit rating and more heavily on your income and employment status. You can learn more about both of these loan options at http://www.nvhousing.state.nv.us/.
Sometimes when homeowners face debt problems they reach a point where they cannot afford to continue paying their mortgage. The state of Nevada maintains a website to help those facing foreclosure pursue their options. This website, http://www.foreclosurehelp.nv.gov/, has information about the foreclosure process and things you can do to stop it. Remember, getting help early in the process is essential if you want to keep your home.
Nevada Debt Assistance Programs
Nevada does not offer any other debt assistance programs. If you are in need of further help, talk to your credit counselor about other options you may have.