Vermont Debt Consolidation
Debt Help in Vermont
If you find that you have fallen behind financially due to your debt load, it may be time to stop and take a close look at what you have been doing financially. If you reach the point where you cannot make your payments anymore, Vermont offers several resources you can turn to for help. By taking a few positive steps now, you can avoid serious financial consequences later.
Vermont Credit Counseling and Debt Consolidation
If you find that you cannot manage the amount of debt that you have, the first thing you should consider is turning to a credit counseling company. Credit counseling allows you to get education, support, and accountability from someone who is trained in proper money management and budgeting. Often credit counseling will show you how you can realistically pay down your debt with the money you currently make.
Finding a reputable credit counseling firm is the key to getting real help through credit counseling. One resource to turn to when searching for a good firm is the Justice Department. They maintain a list of companies approved to work with federal bankruptcy cases. You can find a list of the companies approved to work in Vermont at http://www.justice.gov.
You may also want to consider a debt consolidation option. This allows you to wrap all of your debt into one debt product, such as a home equity loan. The interest rate is typically lower when you do this, which helps you to save money and pay down your debt much more quickly.
Vermont Debt Relief Programs
Vermont debt relief programs offer a similar amount of support as what is offered by credit counselors, yet many of these companies take things a step further by offering consumers the opportunity to step in and serve as a third-party between them and their creditors. They may handle negotiations, set up payment systems, or even work out a debt settlement. Proceed with caution if you decide to partner with a debt relief company. While these services sound great, they come with a steep price tag. Make sure you are getting excellent value for your money and are working with an honest, reputable company.
Vermont Debt Collection Laws
Vermont debt collection laws follow the Fair Debt Collection Practices Act (FDCPA). This federal law outlines what debt collectors and collection agencies can and cannot do when trying to collect a debt. Among other things, the law states the following:
- A debt collector cannot call at inconvenient times, such as before 8:00 a.m. and after 9:00 p.m.
- A debt collector may not threaten or harass the debtor.
- Debt collectors must be truthful at all times when presenting information about the debt. For instance, they cannot state that you will go to jail of you do not pay if this is not the truth.
- Debt collectors must disclose their clients if you ask.
- After the initial contact, a debt collector must send you written information about your debt and your rights.
- They may contact you over the phone, in person, via fax, with a telegram, or through the mail.
- Debt collectors may not use profanity or offensive language when communicating with you.
- They should attempt to make all communication with you, not third parties. If they cannot contact you directly, they can contact friends, family, or coworkers, but only to ask about your contact information. They may not disclose that you owe a debt. If they call you at work and your employer does not allow this, they must stop. If you enlist the help of a lawyer, they must contact the lawyer rather than you.
In addition to the laws in the FDCPA, Vermont has state laws that apply to debt collections. Under these state laws, original creditors must comply with the provisions of the FDCPA. Also, the state forbids creditors or debt collectors from seeking to obtain an affirmation of a debt that it’s not collectible due to bankruptcy or the statute of limitations or some other law, unless they clearly disclose that the debtor is not legally responsible for the debt.
Vermont’s statute of limitations law limits the time period in which a creditor can pursue legal actions against a debtor. Under the current laws, all types of debt have a statute of limitations of six years. This time starts from the day after the account became past due. State laws limit the amount a collection agency can charge to 12 percent. Also, your wages are protected up to 75 percent of your weekly earnings or 30 times the federal minimum wage, depending on which is greater.
Vermont Mortgage Assistance
The Vermont Housing Finance Association offers a variety of mortgage programs to help homebuyers actually afford to buy a home. This organization provides access to information about government-backed loans, which work well for first-time buyers, those with little to put down on a home, and those with less than perfect credit. If you want to live outside of a major city, consider applying for the USDA Rural Development Loan, which offers a no down payment option and affordable rates. The Federal Housing Administration loan also offers affordable rates and a minimal down payment. Find out more about these options at http://www.vhfa.org. The VHFA also offers an affordable conventional loan with no lock-in fee or additional fees due to credit eligibility. If you purchase your home with a loan found through the VHFA, you can get an exemption for the Vermont Property Transfer Tax on the first $110,000 of your purchase price.
If you already own a home but find that you cannot pay your bills, you need to seek help as early as possible in order to avoid foreclosure. The Mortgage Assistance Program offered through the Department of Banking may be able to help. To get this help, call 802-828-3307 or write to:
Vermont Banking Division
BISHCA
89 Main St.
Montpelier, VT 05620-3101
You can learn more about this help at http://www.bishca.state.vt.us.
Vermont Debt Assistance Programs
The Vermont State Treasurer offers this resource to consumers looking for further financial education and help: http://www.vermonttreasurer.gov.