New York Debt Consolidation

Debt Help in New York

Facing an ever-rising cost of living, New York residents sometimes turn to debt to get them through tough financial times. If you find that you are in a situation where you cannot repay what you owe anymore, consider turning to one of the programs offered to New York residents struggling with debt.

New York Credit Counseling and Debt Consolidation

Credit counseling offers debtors the chance to talk with someone about their debt problem, seeking a solution through better budgeting and a structured debt repayment plan. Many companies offer these services in New York, but some masquerade as credit counselors but offer little help or support for a high cost. Make sure you shop carefully for a credit counseling company so that you are sure that you get one that will actually help you work your way out of debt.

The State of New York Banking Department maintains a list of supervised budget planners. Most of these companies are actually New York credit counseling firms, as most of the services provided by a credit counselor revolve around proper budgeting. This list is found at http://www.banking.state.ny.us. Because these companies are supervised by the Banking Department, you can use them with confidence that they are legitimate companies who will offer you quality support and advice. Keep in mind, however, that you still need to shop for the best company to fit your needs and your personality.

Once you have begun credit counseling and have a better handle on your spending, consider consolidating your debts. Debt consolidation allows you to save money by rolling all of your debts into one loan product that has a lower interest rate than your existing debts. While saving money, this also simplifies your life, making it much easier to keep track of your bills. Make sure you do not add to your debt after consolidating, because this will further damage your financial situation.

New York Debt Relief Programs

Sometimes you need additional help beyond the support offered through a New York credit counseling firm. Most New York debt relief companies also offer credit counseling services, but they take their level of care a bit further. Instead of just teaching you about managing your debt, they will work with you to make your repayment terms better. Often, they will negotiate with your creditors on your behalf for debt settlements or better terms on your account. There are fees for these services, and you can do this negotiation on your own, but if you feel the need to have a third party come alongside and help you, then contact a reputable New York debt relief company.

New York Debt Collection Laws

New York follows the Fair Debt Collection Practices Act, which is a federal law protecting debtors against certain practices from debt collectors. Under this law, debt collectors may not:

• Intentionally deceive you in any way.
• Contact third parties about your debt. They may contact third parties if they cannot get a hold of you, but they cannot disclose that they are trying to collect a debt.
• Call at inconvenient hours, such as after 9:00 p.m. or before 8:00 a.m.
• Send mail that indicates you have a debt. For instance, they cannot correspond via a postcard, because others can read the content of a postcard.
• Contact third parties repeatedly. In most situations, they are limited to one contact per person.
• Use threatening, harassing, perverse, offensive, or crude language when contacting you.
• Threaten your physical safety or the safety of your reputation.
• Contact you directly if you are represented by an attorney.

If at any point you want them to stop contacting you, you must request this in writing. Send a certified letter stating that you no longer wish to be contacted, and the debt collectors must comply. If you wish to dispute the debt, you must do so within 30 days of being contacted by the debt collection agency. Send copies of all information, not original documents.

In addition to these federal laws, which govern the actions of debt collectors, New York state laws protect you from certain actions taken by creditors themselves. Under state laws, creditors may not:

• Make you think they are law enforcement or government officials.
• Collect more than what you owe.
• Reveal your debt information to others to destroy your reputation.
• Report your debt to the credit bureaus without reporting our disputes.

If you feel a debt collector or creditor violates any of these laws, file a complaint with the New York state attorney general’s office.

The statue of limitations in New York is six years for all types of debts. This means that your creditors must sue you within six years if they intend to pursue legal action. The time frame starts the month after your debt has gone past due. The maximum that a debt collector can charge in New York is six percent. New York’s wage protection law protects 90 percent of your wages.

New York Mortgage Assistance Programs

The State of New York Mortgage Agency (SONYMA) offers five distinct mortgage programs for first-time home buyers. These each offer low interest rates and minimal down payment requirements. Flexible underwriting allows those with lower credit ratings to qualify. Programs include the Homes for Veterans Program, the Construction Incentive Program, the Achieving the Dream Program, the Remodel New York Program, and the Low Interest Rate Program. Learn more about these options at http://www.nyhomes.org.

Those who are not buying a home for the first time but are struggling with a low credit rating may be able to get a home by using a Federal Housing Administration loan. FHA loans focus more on employment, income, and ability to repay what is owed than they do your credit rating.

If you already own a home but are facing foreclosure, SONYMA recommends 20 counseling organizations that specialize in foreclosure prevention. You can find a list of these at http://www.nyhomes.org.

New York Debt Assistance Programs

New York does not offer any additional state-based debt assistance programs. Those who are struggling with debt need to choose from the above programs for support.