West Virginia Debt Consolidation

Debt Help in West Virginia

When you face overwhelming debt in the state of West Virginia, the thought of claiming bankruptcy and leaving that debt behind may be tempting. However, this is not always the right answer. There is no easy way out of debt, but several programs offered in West Virginia can help alleviate the problems you have with your debt load.

West Virginia Credit Counseling and Debt Consolidation

Sometimes you need a little accountability to work your way through debt problems. This is what West Virginia credit counseling firms offer. A credit counselor will help you create a workable budget, implement that budget, and set up a working repayment plan. Sometimes having this accountability is what you need to kick it into gear and get that debt paid off.

If you think that working with a credit counselor will help you, find a reputable company that offers the services you need. Start by checking this list: http://www.justice.gov. Here you will find the credit counselors that the Justice Department has approved to work with federal bankruptcy cases. This approval gives you assurance that these companies will do a good job for you, just as they do for those headed down the bankruptcy path.

You may also want to consider a debt consolidation option. Debt consolidation loans take what you currently owe and lumps it into a loan that has a much lower interest rate than what you are currently paying. This saves you money, and also uncomplicated your debt situation by limiting the number of bills you have coming and going each month.

West Virginia Debt Relief Programs

Some companies go a step further, offering not only credit counseling, but also debt relief services. This may come in the form of playing a more active role in your repayment by managing your payments, or it may be in negotiating with your creditors for better rates or a debt settlement. If you choose to pursue a debt relief option, make sure you understand what you will pay for these services, as these can be quite expensive.

West Virginia Debt Collection Laws

When the debt collector comes knocking, do you know what your rights are? Understanding West Virginia’s debt collection laws is essential to protecting your personal and financial rights when you owe a debt. The West Virginia Consumer Credit and Protection Act details the way in which debt collectors can try to collect debts. In general, this law prohibits threats, oppression, abuse, and coercion on the part of debt collectors. Also, debt collectors may not make fraudulent, deceptive, or misleading statements or representations. The law also protects you from having debt collectors publicize your debt to third parties, including friends and family members. In addition, the law makes it illegal for debt collectors to threaten criminal sanctions, loss of wages, or legal action.

West Virginia also follows the federal Fair Debt Collection Practices Act. While some of the laws overlap between the two, the FDCPA adds some additional protections for consumers. These are as follows:

• Debt collectors must contact consumers in writing after their first initial communication. This letter must include details about the debt and the consumer’s rights to ask for written verification of the debt.
• The stipulation that debt collectors may not call at inconvenient times, such as before 8:00 a.m. or after 9:00 p.m.
• Debt collectors must contact an individual’s attorney, not the debtor or any other third parties, if the debtor chooses to use an attorney.
• Debt collectors must only call a debtor at work once per week, and only as long as they are not told this is not allowed by the employer.

The FDCPA also gives you the right to stop the calls from a collection agency. All you have to do is send a letter asking you to stop. After this, you might get a final letter stating that the collection agency will not longer contact you, but after that they must stop all contact about the debt, provided your creditor does not decide to pursue legal action.

If your creditors do decide to sue you, they must do so within the time frame set forth in the statute of limitations. These times are as follows:

• Open accounts, like credit cards – Five years
• Oral agreements – Five years
• Written contracts – Ten years
• Promissory notes – Ten years

Collection agencies will charge interest for their services. The maximum interest they are allowed to charge is six percent. West Virginia also provides wage protection if your creditors choose to garnish your wages. The wage protection is 30 times the federal hourly minimum wage.

West Virginia Mortgage Assistance

If you are looking for an affordable way to buy a home, consider the West Virginia Housing Development Fund. Their First Time Homebuyer program offers income-eligible borrowers up to 100 percent financing for their first home purchase. These loans are insured by the VA, the FHA, or the USDA, so they focus less strongly on your credit rating. As long as you have an average credit rating and enough income, you will be approved. The WVHDF also offers down payment and closing cost assistance of up to $15,000 in the form of a second loan with a zero-percent deferment period and low 4 percent interest rate after that.

If you are considered a low to moderate income family, consider the HOME Leverage Loan, a zero-percent loan offered for up to $40,000. The 30-year loan can be made in connection with a traditional mortgage to pay the remaining cost of the home purchase, offering an even more affordable way to get a home. These are just some of the programs offered through the WVHDF. To learn about the others, visit http://www.wvhdf.com/homebuyers/.

Sometimes those who already have purchased their home fall on hard financial times, and when they do, the home loan is often the first thing that they stop paying. If you find that foreclosure could be a possibility in your future, contact a housing counseling agency approved by HUD.

West Virginia Debt Assistance

West Virginia does not offer any further debt assistance programs. If you are struggling with debt, consider taking advantage of these programs, and remember that paying off debt does take time.