Debt settlement is the process of negotiating the debts owed with the creditor for a lesser amount. People can do this on their own, however, finding a professional company to negotiate on your behalf can be beneficial as they won’t fall for tricks debt collectors play in order for you to pay the entire amount owed.
Many people in Anchorage find consolidating their high interest debts into one lower interest loan is a good way to save money by paying more on the principal balance and not on interest. Consolidated credit cards into one lower interest payment sounds great.
However, this isn’t always available to people because to get approved for a lower interest loan you often need to have a decent credit score. If you’ve already fallen behind on your payments, your credit rating may have fallen to a point where lenders might consider you to be too high risk to be approved for a consolidation loan.
If you are trying to get out of debt and aren’t entirely sure where to turn, let’s discuss the range of settlement and other debt solutions available to you. Our team of financial experts is standing by to help you get your finances back on track.
Debt reduction programs come in a variety of forms. Each debt relief tactic comes with their own pros and cons. First thing to do is to get to know each of your options and find out which one is best for your specific situation.
Here are a few debt relief options in Alaska that can help get your finances back on track: Debt Settlement, Debt Consolidation Loans & Debt Management.
Debt management is when you work with your creditors to lower your interest percentage to a lower amount and lower your monthly payment. Unlike debt settlement, you will pay back the entire amount owed on the debt – as a result, it will take longer to pay back the debt but your credit score will be less impacted, if impacted at all.
Depending on your situation, you can file for either chapter 7 or chapter 13. Bankruptcy is more difficult and costly than many people think as you’ll have to pay lawyer fees, processing fees and depending on the type of bankruptcy, you might still have to pay back the entire debt owed.
Talk to an Americor debt relief professional, to discuss your specific situation to determine what’s the best way forward before jumping into any debt relief program in Alaska.
As you can see above, there are different types of debt relief programs in Alaska. Each one can affect your credit in different ways. You’ll need to determine which tactic is best for your situation. Some debt relief options won’t negatively affect your credit that much, if at all, others such as bankruptcy can take years to recover from.
The Alaska Fair Debt Collection Practices Act was created to protect people behind in paying debts to not be harassed by creditors or debt collectors. It prevents collectors from lying or threatening you in attempts to recoup money owed. It also regulates what hours of the day collectors can call you and prevents them from talking to anyone besides the debtor about debts owed, such as spouses or other family members.
If you feel like a debt collector has violated the Fair debt Collection Practices Act, you can file a complaint with the Consumer Protection Unit in Alaska.
Understanding your rights and responsibilities regarding your creditors begins with knowing the statute of limitations on your accounts. Although it varies state by state, the statutes of limitations is a specific limitation on the time in which creditors can file legal action against you for past due debts. In Alaska, the statutes of limitations on outstanding debts are:
The State of Alaska follows the Fair Debt Collection Practices Act as enforced by the FTC. In addition, there are state laws that can further protect Alaska consumers.
Based on the Alaska Administrative Code, the state laws prohibit the following debt collection practices:
Unless a property has been used for collateral, the collector has no legal claims over a debtor’s property and should not try to repossess it.
If the debtor is represented by a lawyer, the collector needs to speak with them.
The collector should not falsely inform the debtor of the rights to file a response or dispute to their demands. They cannot make the debtor sign any confession of judgment.
The collector is prohibited from adding any fees in addition to the debt originally owed by the debtor.
To file a complaint, you can get in touch with the Attorney General of the State of Alaska. There are a few ways to file a complaint:
For more information about the Fair Debt Collection Practices in Alaska, go to: http://www.law.alaska.gov/department/civil/consumer/debt.html
Alaskans take pride in their rugged individualism and self-reliance, but even the most responsible folks sometimes need help with out of control debt. Alaska debt help is available for those who find themselves under water financially. You don’t need to go it alone when trying to find relief in troubled financial situations. Whether you want to explore your options under Alaska debt consolidation laws, or are looking for Alaska debt relief that gives you time to restructure your financial responsibilities, there is a debt solution for your family.
For Alaskans trying to thrive in uncertain economic times, relying on credit cards to meet any unexpected expenses can be detrimental. In addition, the cost of living is exacerbated by the states remote location and limited resources. Alaskans hold the highest credit card balances in the nation with the average Alaskan family bearing $7,552 in credit card debt.