Rhode Island Debt Consolidation
Debt Help in Rhode Island
Whether you are in debt because of poor budgeting or face a debt crisis because you have unexpected expenses, the state of Rhode Island offers some assistance that might help make getting out of debt easier. Learn more about these programs as you start down the road of getting out of debt.
Rhode Island Credit Counseling and Debt Consolidation
Consumers struggling with debt in Rhode Island often turn to others for help. One of the best sources of help is a debt consolidation firm. Rhode Island debt consolidation companies provide education, training, and support to those dealing with overwhelming amounts of debt.
Sometimes companies will charge high up front fees for credit counseling services. Avoid companies that do this. One way to help yourself find reputable debt counseling firms is to start with the list of companies approved by the Justice Department to counsel Rhode Island bankruptcy cases. To find this list, visit http://www.justice.gov.
In addition, consider consolidating your debts to make it easier to repay them in a timely manner. Debt consolidation lowers your interest rates by placing all of your debts into one debt or loan. If you can be disciplined enough to avoid adding to those debts with the help of your credit counseling firm, you can get out of debt much more quickly and by paying much less interest with the right debt consolidation option.
Rhode Island Debt Relief Programs
Debt relief programs in Rhode Island often offer similar services as offered by Rhode Island credit counselors, but they may go farther by taking over the repayment for the debtor. Instead of sending your monthly payment to your creditor, it will be automatically deducted from your account and sent to the debt relief company, who will then send it to your creditors. Often, these companies also assist by negotiating better terms and debt settlements for their customers. Keep in mind that this type of negotiation is something you have the right to do on your own, so do not pay high fees for someone else to do it for you.
Rhode Island Debt Collection Laws
Rhode Island follows the practices outlined in the Fair Debt Collection Practices Act, a set of federal laws that dictates how debt collectors must act. These laws outline when, where, and how debt collectors can contact consumers. For instance:
- Debt collectors may contact via telegram, phone, letter, fax, or personal visit.
- Debt collectors may not call at inconvenient hours, such as before 8:00 a.m. or after 9:00 p.m.
- You must be informed of your rights within five days of the initial contact.
- Threatening, profane, or offensive communication is prohibited.
- Debt collectors can only contact you at work once per week and only if your employer does not disagree.
- Debt collectors can contact third parties if they cannot get a hold of you, but they may not disclose that you owe a debt, and in most cases they can only contact each individual one time.
- You are protected against harassment, which includes repeated phone calls with the intent to annoy.
- Debt collectors must not intentionally mislead you about your debt.
- They must identify themselves when they contact you.
- They must provide proof of your debt obligation if you ask them to do so.
If you do not wish to have the debt collectors contact you again, send them a written letter asking them to stop. After they receive the letter, they will send you a letter stating they will stop. At that point, the only contact they may make with you is to inform you that you are being sued by your creditors.
For your creditors to sue you, they must start the legal proceedings within the timeframe outlined in the statute of limitations. The time starts the month after your first missed payment. Under Rhode Island debt laws, the statute of limitations for debts is as follows:
- Oral agreements – 10 years
- Written contracts – 10 years
- Open accounts, like credit cards – 10 years
- Promissory notes – 10 years.
The state offers little wage protection for debtors, so your wages are protected under the federal law, which protects 75 percent of your weekly earnings. If your debts do go to collections, the collection agency can charge up to 12 percent for their services.
In addition to these rules, the state imposes its own laws on the debt collections process. As part of the state legislation, consumers who are abused by debt collectors may take civil action and collect up to $1,000 for the offense.
Rhode Island Mortgage Assistance
Rhode Island Housing provides affordable loan programs and education for those interested in buying a home within the state. The First Homes program offers low fixed- rate 30-year mortgages with up to 100 percent financing. This removes the barrier caused by high closing costs and down payment needs. If you wish to purchase a home that needs some repair, choose the FirstHomes 100 PLUS loan, which allows you to lump the cost of your repairs into your original home loan.
The Beyond FirstHomes loan program applies to those who may not be first time homebuyers. Qualified individuals include those who have not owned a home in the past three years, who have not lived in the home they own for three or more years, or who wish to live in certain areas that are targeted for regrowth. These individuals can get the FirstHomes terms through the Beyond FirstHomes program.
To get a home when you have a credit rating below 660, look into the FHA home loan program. This government-backed loan, offered through the Department of Housing and Urban Development, offers buyers the chance to get a home loan that does not focus as strongly on credit score as a criterion for approval.
If you find that you face foreclosure due to a lack of payment on your loan, Rhode Island Housing offers information about support programs you might be able to take advantage of to keep your home. Remember to act quickly, because the sooner you take steps to fix the problem, the less likely it will be that you cannot get help. Visit http://www.rhodeislandhousing.org to find out more.
Rhode Island Debt Assistance Programs
Rhode Island offers no other debt assistance programs. If you qualify for other assistance through the state, take advantage of those programs to free up money you can use to pay down your debts.