South Carolina Debt Consolidation

Debt Help in South Carolina

South Carolina offers a variety of government and private programs that help those struggling with debt get out of debt and back onto solid financial ground. Always consider these options as you work on getting out of debt.

South Carolina Credit Counseling and Debt Consolidation

When debt amounts reach higher-than-manageable levels, one of the first places South Carolina residents should turn is to a credit counseling agency. Credit counselors help those struggling with debt to find a workable solution to the problem, usually through education and budgeting help.

The level of support offered by each South Carolina credit counseling firm will vary tremendously from one company to another. Some are local agencies focused primarily on the needs of South Carolina residents, while others are national credit counseling firms with a broad reach. Regardless, choose a credit counselor that has affordable rates and offers the services you think will be the most beneficial to your family. Start by browsing the list of companies approved to work with South Carolina bankruptcy cases, which you can find at http://www.justice.gov. Choose two or three of these companies to call as you begin learning about your options.

One option to discuss with your credit counselor is finding a debt consolidation option. Debt consolidation allows you to roll all of your loans and credit card balances into one debt or loan option. If you find a loan with a lower interest rate than what you are currently paying, you will save money by consolidating your debt, provided you do not add to your debt afterwards.

South Carolina Debt Relief Programs

South Carolina debt relief programs vary from credit counseling in that they usually offer negotiation services. If you are hoping to get your debt reduced through a debt settlement or make it more affordable through better terms, they can help. Be cautions when working with a debt relief company. Often these companies charge very high fees, and they offer no services that you cannot already do on your own. They do sometimes offer more accountability, as repayment is made automatically, limiting the chances to forget to pay your bill and incur more finance charges.

South Carolina Debt Collection Laws

South Carolina protects consumers by following the Fair Debt Collection Practices Act. This law prohibits debt collectors from engaging in certain practices that harass the debtor in an attempt to collect the debt. It covers personal, family, and household debts, but not business debts. Under the law:

• Debt collectors may contact by fax, through the mail, in person, over the telephone, or via a telegram.
• Debt collectors must not contact you at unreasonable times, like before 8:00 a.m. or after 9:00 p.m., or at unreasonable places, such as at work if this is frowned on by your employer.
• Debt collectors may contact third parties, such as friends, family, and coworkers, if they cannot get a hold of you. However, they cannot disclose that you owe a debt. They may just ask for your contact information, and they can only contact individuals one time in most situations.
• If you have an attorney, that is the only individual that the debt collector may contact. This keeps them from contacting you or those who know you.
• After your first contact with the debt collector, he or she must send you a written notice with details about your debt, the creditor, and your rights if you want to dispute the debt.
• Debt collectors may not harass, oppress, threaten, or abuse debtors, nor can they make a false representation about the situation.

In addition, South Carolina has state laws that apply to original creditors. Under these laws, original creditors must follow the FDCPA laws, and they cannot call you more than once in a 24-hour period.

If you feel that a debt collector has violated this law, you can sue them to recover money for damages, attorney fees, and court costs. You still must pay the debt, however. Report any debt collector problems to the Department of Consumer Affairs and the Federal Trade Commission.

If you wish to stop collection calls, do so by writing to the collection agency asking them to stop contacting you. They must comply, and they may only contact you to tell you about any impending lawsuits.

Your creditors have the right to sue you for your past due debt, but they must start legal proceedings within South Carolina’s statute of limitations time period. The statute of limitations for all forms of debt in South Carolina is three years. The state follows the federal wage protection guidelines of 75 percent of your disposable weekly earnings. Debt collection agencies can charge up to 8.75 percent for their services.

South Carolina Mortgage Assistance

South Carolina’s State Housing Finance and Development Authority offers programs to assist homebuyers get homes and homeowners keep the homes they have. The SCSHFDA has several loan programs that offer up to 97 percent financing at a low fixed-rate. The loan programs are designed primarily for first-time homebuyers. However, those purchasing homes in targeted development counties or who are single parents may be able to use the state-sponsored loan program without the first-time homebuyer requirement.

In addition to the affordable rates, the SCSHFDA loan program also offers down payment assistance. The amount of assistance depends largely on the buyer’s income level. Applicants can get up to $5,000 to pay for their closing costs and down payment, and in some situations this money is forgivable. Also, those who qualify for the SCSHFDA Palmetto Heroes Homebuyer Program, which applies to police officers, fire fighters, EMS, and teachers, can get up to $7,000 in assistance.

To get a home loan with a poor credit rating, you may need to take advantage of the federally backed FHA home loan program. The federal backing on these loans makes them less risky for lenders, thus increasing the likelihood that you will qualify.

If you find that foreclosure is a real possibility in your future, look into the help available through the resources at the South Carolina Information Highway. The foreclosure links are at http://www.sciway.net.

South Carolina Debt Assistance Programs

South Carolina offers some debt education documents at the South Carolina Information Highway, located at http://www.sciway.net/consumer/.