Utah Debt Consolidation
Debt Help in Utah
Few people intend to get into problems with their debt. When you find yourself in that situation, it can seem completely overwhelming. To get back on track, learn all you can about the programs offered to help debtors in Utah.
Utah Credit Counseling and Debt Consolidation
One of the first things you can do to help you deal with your debt is get some accountability. Utah credit counselors provide both education and accountability to those struggling with debt. A credit counselor may help you create a budget, make a repayment plan that will actually work, or learn more about how money works and how your debt affects you.
As you search for a credit counselor you feel comfortable working with, start your search with the Department of Justice’s list of companies qualified and approved to work with federal bankruptcy cases in Utah. This list is found at http://www.justice.gov. From this list, choose a company that offers the services and support you feel with be the most beneficial to you.
Another option to consider in your quest to pay off your debt is debt consolidation. Debt consolidation pays off all of your debts with one loan, lumping them into one payment. If you can get a loan with a lower interest rate than what you are currently paying, you will be able to get out of debt quicker and save money at the same time, provided you do not add to your debt further once you consolidate.
Utah Debt Relief Programs
If you need more than just accountability and education, you may wish to consider partnering with a Utah debt relief firm. These companies offer support similar to credit counselors, but they often take a more active role. They may serve as a go-between for you and your creditors, working with you and your creditors to negotiate better terms or a debt settlement plan. Keep in mind that you can make these same phone calls and negotiations, if you are willing, without paying someone else to do so.
Utah Debt Collection Laws
Utah requires debt collection companies to follow the Fair Debt Collection Practices Act, a set of federal laws that outlines how they can and cannot behave when collecting debts. If you feel that a debt collector is violating these laws, contact the Federal Trade Commission to file a complaint and learn your rights. You may be able to get a settlement for the abuses you endure.
Under the FDCPA, debt collectors must not:
• Call you at work if your employer doesn’t want them to do so.
• Call you at an inconvenient time, such as before 8:00 a.m. or after 9:00 p.m.
• Call you repeatedly or continuously in an attempt to harass you so you will repay the debt.
• Tell third parties about your debt. This can be in personal or telephone contact or through mail communication that clearly displays information about your debt on the envelope.
• Harass, embarrass, or threaten you.
• Use profane, obscene, or offensive language.
• Imply that legal action will occur if it will not.
In addition, the law requires certain actions from debt collectors. These include:
• Sending you a written letter after the initial contact explaining your debt and what you can do to dispute it.
• Identifying themselves and their employers if you request this information.
• Verifying the validity of the debt if you choose to dispute it.
These laws apply only to debt collection agencies and their employees, not to original creditors. In addition to the FDCPA laws, all Utah debt collectors must be registered and bonded with the Utah Division of Corporations and Commercial Code. Utah places one regulation on the original creditor. If your original creditor attempts to collect a debt by threatening violence or another criminal means, then they no longer have the right to collect the debt through legal means.
If you wish to stop the actions of a debt collector, make a request in writing for them to stop contacting you. They must comply, and they can only contact you after this to tell you that legal action is going to happen.
Creditors do have the right to pursue legal action in an attempt to collect a debt, if they start the proceedings within the timeframe set forth in the state’s statute of limitations. The statute of limitations for debts in Utah is as follows:
• Oral agreements – Four years
• Open accounts (like credit cards) – Four years
• Promissory notes – Six years
• Written contracts – Six years
The state protects 75 percent of your weekly earnings from garnishment or 30 times the federal hourly minimum wage, whichever is greater. It also limits debt collectors to charging 10 percent for their services.
Utah Mortgage Assistance
The state of Utah created the Utah Housing Corporation to help homebuyers find affordable housing options. The Utah Housing Corporation offers six loan programs to low and moderate-income buyers who are purchasing a home for the first time. these include FirstHome and FirstHome Plus, two veteran loans, and two loans for single parents. The Plus loans include down payment or closing cost assistance in the form of a second low cost loan. To learn more about qualifying for these loans, visit http://www.utahhousingcorp.org. The organization also offers homebuyer education services at http://www.utahhousingcorp.org.
For buyers who need a home but have a low credit score, the Federal Housing Administration offers the FHA loan program. This loan, which has government backing, is usually approved based on employment history and income amounts, rather than credit rating, because the lender has less of a risk due to the government backing.
If you already own your home but seem to face foreclosure, consider talking to one of the HUD approved housing counseling agencies for Utah. These agencies will help you pursue all available options fro keeping your home. You can find the list at http://www.hud.gov.
Utah Debt Assistance Programs
Utah does not offer any additional debt assistance programs. If you are considered a low income individual, take advantage of other assistance programs offered to free up some money to pay down your debts.