South Dakota Debt Consolidation

Debt Help in South Dakota

When you face overwhelming debt, you often feel that there is no way out. South Dakota offers a variety of programs that can help you regain your financial security and get back on your feet.

South Dakota Credit Counseling and Debt Consolidation

Before you consider bankruptcy or some other drastic measure for dealing with your debt load, take the time to talk to a South Dakota credit counselor. Credit counselors are trained in budgeting and credit education, and they can show you areas in your life that you can save money so you can pay down your debt. They provide support, accountability, and education as consumers work their way out of debt.

Finding a reputable credit counselor starts with the right list of potential candidates. The Justice Department maintains a list of credit counselors who are qualified to work with federal bankruptcy cases. Using a credit counselor listed on this list, found at http://www.justice.gov, will help you as you narrow down your search. Keep in mind that the services these companies offer vary from group to group, so always ask them about the specific services they offer before choosing one.

One option to keep in mind as you work through credit counseling is debt consolidation. Only choose this option if you stand to save money, but if you can consolidate your debts into one loan or credit source that has a lower interest rate than you what you are currently paying, you can end up in a better financial situation, just makes sure that you do not add to your debt after you consolidate.

South Dakota Debt Relief Programs

Debt relief programs in South Dakota help by offering negotiation services. They may be able to get you a debt settlement, which is a situation wherein you pay only a portion of what you owe in a lump-sum payment, or they may negotiate better terms, like a lower interest rate or fewer fees. These are things you can do completely on your own, but if you lack negotiating skills, you may benefit from hiring a firm to do it for you. However, you will pay for these services, even if the debt relief company is a “non-profit,” so choose carefully to avoid paying more than is fair.

South Dakota Debt Collection Laws

The state of South Dakota operates under the Fair Debt Collection Practices Act, a set of federal laws that places limits on what debt collectors can and cannot do as they try to collect debts from you. These laws are aimed at protecting you from the embarrassment and distress that sometimes comes from the tactics used by debt collectors.

Under the FDCPA, debt collectors:

• Must identify themselves by name and tell you who they are employed with.
• Must not falsely represent information about your debt.
• Must not call at inconvenient times or harass you over the phone by calling repeatedly in the same day. Inconvenient times in most situations are defined as before 8:00 a.m. and after 9:00 p.m.
• Must not threaten, harass, or otherwise abuse you in any form of contact.
• Can make contact in person, or via fax, phone, mail, or telegram.
• Cannot send any form of mail that misrepresents information about your debt, such as by appearing to be from the government, or gives out obvious information about your debt, such as would be possible with a post card.
• Must not threaten to harm your reputation, such as by publishing your name in a list of delinquent debtors.
• Must disclose details about your debt in writing within five days of the first contact they make with you.
• May contact third parties in an attempt to reach you or get current contact information, but they may not disclose that you owe a debt when they do.
• May not contact anyone except your lawyer if you choose to be represented by a lawyer.

You can stop all contact from a debt collector by sending them written notice not to contact you anymore. After they receive your letter, they may only contact you to inform you that your creditors decided to sue you, or to let you know that they got the letter and communication will cease. You are still responsible to pay what you owe, however, even after the debt collector stops calling. If your creditor decides to sue you, they must do so within six years of the time when your debt became past due. This is because of the state’s statute of limitations law.

South Dakota Mortgage Assistance

The South Dakota Housing Development Authority is the primary source of housing assistance for homebuyers in the state. For first-time homebuyers, the program offers rates below the market rate on a fixed rate loan. The program has some income requirements, and you cannot use it if you have owned a home within the past three years.

Some borrowers can also qualify for mortgage down payment assistance through the SDHDA. The Employer Mortgage Assistance Program, which operates through certain participating employers, offers a second mortgage with a 2.0 percent interest rate that homebuyers can use for closing cost and down payment assistance. Income-eligible homebuyers may get help through the Loan Assistance Program, which offers a 3.0 percent loan for down payment and closing cost assistance. To find out more about these loan programs, visit www.sdhda.org.

Buyers who are struggling with a low credit rating should look into federally backed loan programs. The FHA loan program, which anyone can get, offers low-down payment financing that focuses primarily on employment history and repayment ability when choosing those who qualify. The Rural Development loan program is offered to those who choose to live in rural areas of the state, and again relies less heavily on credit rating when choosing the applicants that get approved.

Sometimes homeowners in South Dakota find themselves in a situation where they cannot pay their mortgage. For these, the Homeowners Education Resource Organization (HERO) offers information about foreclosure and avoiding foreclosure. You can find this information at http://sdhomebuyered.org. Remember, the sooner you act after your mortgage goes into default, the better your situation will be in the long run.

South Dakota Debt Assistance Programs

While South Dakota does not offer many other debt assistance programs, it does offer a few financial assistance programs. Taking advantage of these will help you free up the necessary money to pay down your debt faster.