Tennessee Debt Consolidation

Debt Help in Tennessee

When you find yourself in a station where you cannot repay the debts that you owe, take some time to learn about the debt help services offered in the state of Tennessee.

Tennessee Credit Counseling and Debt Consolidation

If you have reached a point where you cannot handle your debt load, consider talking to a Tennessee credit counseling firm. Tennessee credit counselors will come alongside and help you learn to better manage your money. They provide accountability along with much-needed education about debt and finances. Often this support is the one thing you need to get yourself back on track financially.

You will pay something for credit counseling services, so make sure that you choose a reputable company. One way to ensure that the company you are considering will provide the services you need is to choose one listed by the justice department as approved to work with bankruptcy cases in Tennessee. You can see this list at http://www.justice.gov.

When you meet with your credit counselor, find out if they recommend any debt consolidation plans. If you have an asset, such as a piece of real estate, that you can put down as collateral for a loan, you may be able to pay off your debts with a loan, then repay that loan with a lower interest rate than what you are currently paying. If you can remain disciplined enough not to add to your debt after consolidating, you can get out ahead by paying far less in interest with the consolidation loan.

Tennessee Debt Relief Programs

Tennessee debt relief or debt management programs offer the same education and support offered through a credit counselor, but they also help you manage your debt. In some situations they will work with your creditors to get better rates for you or to negotiate a debt settlement. Often these services come with a high price tag. To help protect consumers, the state of Tennessee posts regulations about debt relief programs, which you can find here: http://www.tennessee.gov. Make sure any debt relief service you are considering meets these guidelines. If they do not, they are operating outside of the bounds of the law, and likely are not offering you the most ethical service.

Tennessee Debt Collection Laws

The state of Tennessee, like most other states, requires debt collectors to conform to the Fair Debt Collections Practices Act (FDCPA), a federal law that limits the actions debt collectors can take to try to collect a debt. Under this law, debt collectors cannot:

• Call or visit at inconvenient times, which are generally defined as before 8:00 a.m. and after 9:00 p.m.
• Use harassing, threatening, or offensive language.
• Threaten to embarrass you by publishing information about your debt in a public forum.
• Send information in a letter format that discloses your debt to others.
• Tell third parties about your debt. Debt collectors can only contact third parties if they have tried to reach you and failed, and when they do they can only ask about your contact information.
• Intentionally mislead you about your debt or the actions your creditors will or will not take.
• Call repeatedly as an attempt to annoy.

The laws also outline certain actions that debt collectors must take in regards to your debt. These include:

• Identifying themselves when they contact you.
• Telling you your rights if you wish to dispute the debt.
• Sending you a letter outlining the details of the debt within five days of their initial contact.

If you wish to stop all contact from a debt collection agency, you have the right to do so. Simply ask them to stop in writing. Send the letter via certified mail so you have proof that it was received. Once they receive the letter, the collection agency can send a letter telling you they are done with their communication. They also may contact you if your creditor decides to pursue legal action. Otherwise, all contact must cease.

If your creditors choose to sue you, they can do so, but they must do so within the timeframes set forth in the statute of limitations legislation. In Tennessee, the statute of limitations on debts is six years no matter what form of debt it is.

Tennessee also limits the amount of interest a debt collection agency can charge. Debt collectors can charge no more than 10 percent. Tennessee wage protection laws protect either 75 percent of your weekly earnings or 30 times the federal hourly minimum wage, whichever is greater. If you have children at home, you will get an additional $2.50 per week per child to keep.

Tennessee Mortgage Assistance

The Tennessee Housing Development Agency offers a variety of home loan programs to help homeowners and buyers get and keep their mortgages. For first-time homebuyers, the Great Rate Mortgage Program offers below market interest rates on a buyer’s first home loan. For buyers who need down payment or closing cost assistance, the Great Advantage and Great Start loan programs offer slightly higher rates with the advantage of assistance for the upfront costs of purchasing your first home. You can learn more about these loan programs at http://www.thda.org. The THDA also offers a brochure to help potential buyers figure out if they are ready for homeownership. This is found at http://www.thda.org. If you are a buyer who has a low credit rating, consider applying for an FHA loan through a traditional lender. This loan requires as little as three percent as a down payment and relies less heavily on your credit ratting than other loan options.

If you already have a mortgage but are facing foreclosure or simply want to make your current loan more affordable, the THDA can help. The Great Save refinance program offers those who got their loans between December 31 2001 and January 1, 2008 the chance to refinance at a better rate. The THDA also offers access to certified foreclosure prevention counselors for homeowners who find themselves in difficult financial circumstances. Find out more about these programs at http://www.thda.org.

Tennessee Debt Assistance Programs

Tennessee does not offer any additional debt assistance programs. Those struggling with debt should choose from the programs and services currently offered to help them get a handle on their debt situation.