New Hampshire Debt Consolidation

Debt Help in New Hampshire

New Hampshire offers a variety of programs to those in the state who are struggling with too much debt. Whether you got into debt problems through foolish spending, but are now ready to be more responsible, or simply had an unexpected emergency that required you to turn to debt temporarily, these programs may offer the boost you need to get back on track financially.

New Hampshire Credit Counseling and Debt Consolidation

If you find that you have more debt than you can realistically handle, one of the first options to consider is talking with a credit counselor. Credit counseling firms set individuals up with counselors that will educate them about their money and what they should do with it to avoid debt and repay the debt they have.

Finding a qualified credit counseling firm is sometimes challenging. One place to start is with the list of New Hampshire credit counseling firms currently approved by the Department of Justice to work with federal bankruptcy cases. You can find this list at http://www.justice.gov. These companies work with all people struggling with debt, not just those who are headed to bankruptcy.

You might also want to consider looking into a debt consolidation option. A debt consolidation loan takes all of your debt and combines it into one loan. If you own your home, you may want to consider a home equity loan, because these typically have a much lower interest rate than what you are currently paying. Make sure that you do not use a debt consolidation loan until you are certain that you will not add to your debt problems.

New Hampshire Debt Relief Programs

New Hampshire debt relief programs often offer more than credit counseling, sometimes offering to help you reach a debt settlement with your creditors or even negotiating better terms for you. However, you will pay for these services, so make sure that it is truly something you need. Also, watch out for companies that charge predatory prices, because you do not need to be paying high fees when you are already dealing with financial problems.

New Hampshire Debt Collection Laws

New Hampshire follows a series of laws that govern debt collection practices. These laws, known as the Fair Debt Collection Practices Act, are established by the federal government. New Hampshire also has its own set of laws called the Unfair, Deceptive or Unreasonable Collection Practices Act.

Under these two laws, debt collectors must perform the following actions:

• Disclose their identity, address, and identity of the debtor when making contact through the mail or telephone.
• Follow up an initial phone contact with a letter within five days. The letter must contain the amount of the debt, identify the creditor, tell the consumer how to dispute the debt, and explain the consumer’s rights if the debt is disputed.

While the law outlines things debt collectors must do, it primarily focuses on the things that they cannot do. The main goal of the law is to protect consumers from abusive practices common to these types of individuals. Some of the things that debt collectors may not do include:

• Use obscene or abusive language
• Threaten violence
• Threaten criminal action to an individual’s property, person, or reputation
• Contact debtors at unusual or inconvenient times, which usually is defined as before 8:00 a.m. or after 9:00 p.m.
• Contact the debtor repeatedly or endlessly over the phone
• Contact consumers at work if the employer forbids this
• Contact third parties about the debt, with the exception of when trying to get the debtor’s contact information
• Contacting the consumer directly if the consumer is using an attorney
• Publishing the debtor’s name in any public medium or otherwise publicly expose the debtor.

The regulations outlined in the FDCPA apply only to debt collectors, but New Hampshire’s own debt collection laws apply them also to original creditors. Original creditors cannot communicate with third parties, unless they live in the debtor’s house and the creditor has tried for 30 days to contact the debtor personally.

The state’s debt laws limit the interest rate a collection agency can charge to 10 percent. Also, New Hampshire’s laws protect the individual’s wages, up to 50 times the federal minimum wage. If your creditors are going to sue you, New Hampshire requires that they begin legal proceedings with a period of time known as the statute of limitations. The statute of limitations for all types of debts in New Hampshire is three years.

New Hampshire Mortgage Assistance

New Hampshire Housing offers a variety of resources to homeowners and those interested in buying a home, including financial support in some situations. For those interested in buying their first home, the Single Family Mortgage Program offers cash assistance grants to help them afford the down payment and closing costs on their home purchase. Those interested in buying a home that needs some fixing up can get some financial help through the Purchase/Rehab program. Buyers who are more interested in a new home may be able to get additional down payment and closing cost assistance through the New Production Initiative. Low-income families interested in buying a home may be about to get a Voucher Assisted Mortgage. This mortgage allows them to use their Housing Choice Voucher as part of their mortgage payment. To find out more about all of these programs, visit http://www.nhhfa.org.

None of these state mortgage programs cater to the needs of buyers who have a low credit rating. However, the Federal Housing Administration (FHA) has a loan program that can work for some low-credit borrowers. These federally backed loans look at the borrower’s repayment ability, rather than creditworthiness, when making a decision about approval.

If you already own your home but your debt problems make foreclosure seem immanent, you may be able to find help through the state’s Mortgage Foreclosure Assistance Hotline. Call 800-437-5991 for more information about this and to talk to a housing counselor.

New Hampshire Debt Assistance Programs

New Hampshire offers some protections to those struggling with debt who could easily fall victim to unscrupulous “credit repair” scandals. To learn more about how the law governs these companies, visit http://doj.nh.gov. Only work with those companies who comply with these state laws.