From the panhandle to the Florida Keys, the geography of the Sunshine State is as varied as its people. However, living in Florida can be an expensive proposition for both individuals and families. With increasing national consumer costs in recent years, including food, housing, and transportation costs, many Floridians see household budgets in the red.
In an effort to make ends meet, many turn to their credit cards to plug shortfalls during the month, which has resulted in an average credit card debt in the Sunshine State of $5,603 per household. If you are desperate for Florida debt relief, you need the correct information regarding your rights and responsibilities as it pertains to your debts.
For families living in Florida, the state offers protection like Florida debt consolidation programs, or other debt relief plans designed to help you out of your financial struggles.
Understanding the state’s statutes of limitations is important to knowing your rights under the consumer protection laws. 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 Florida, the statutes of limitations on outstanding debts are:
In addition to these protections, the state also has a consumer protection bureau designed to shield Floridians from aggressive collection attempts.
Floridians have a variety of options when it comes to debt relief. Some of the most wide used debt relief options include:
Florida follows the set of laws known as the Fair Debt Collection Practices Act. Details include:
Maximum Interest Rate a Collection Agency Can Charge in Florida: 5% above Federal Reserve discount window rate at the time the interest is due.
Florida Wage Protection: 100% protection for heads of family up to $500 per week.
Get the relief you’re looking for. If you are struggling financially, you have enough on your plate as it is. The last thing you want is to worry about being sued or having your wages garnished. As such, you should discuss the range of debt management options available to you.
Our team of financial experts is standing by to help you with the Florida debt forgiveness plan you need help get you back on your financial feet. Get the help of an A+ BBB Accredited (Better Business Bureau) company providing trustworthy debt relief programs in Florida.
Florida has different debt relief programs for different situations. Factors determining which debt solution is best for will depend on circumstances such as the amount of debt owed, employment status and ability to pay back the debt.
Every debt relief company is different. Some companies are more legitimate than others. Make sure you check out a debt company’s credentials before joining a program. Client testimonials are a good starting point. Also be aware of the fee structure of each company – upfront fees can be a red flag.
Different programs affect your credit in different ways. Some will have a major impact on your score like bankruptcy. Other solutions such as debt consolidation loans will have less of an impact on your credit score.
Typically you can consolidate unsecured debts like credit cards debt, medical bills and even payday loans into one lower interest loan. Keep in mind to acquire a consolidation loan, you need a good credit score.
If you’re looking to consolidate multiple debts into one loan, it’s best to find a loan with the lowest interest rate. The lower the interest rate, the more money you can put toward paying off the total balance.
Is a consolidation loan the best option for you? Let’s find out. A debt consolidation loan means combining all your high interest debts into one lower interest, fixed rate loan. This helps people lower their monthly payments by eliminating money going mostly towards paying interest with little money going towards paying down the total balance. A debt consolidation loan will help you pay off debts faster by paying less interest.
Generally, a credit score is not negatively affected by a debt consolidation loan. However, when applying for a loan, lenders will run your credit score which can have a slight impact on your credit score temporarily.
Floridians can also find debt relief in debt settlements. This is where your debts owed to credit cards and other types of debt are negotiated with the banks for a lesser amount. You will need to close your account with the creditors before the debt settlement process begins. Oftentimes people can expect settlements for around half of the original debt owed.
Do Debt Settlements affect your credit score?
Credit score will be affected by this process but can rebound after the debts are settled and credit is being re-established.
Debt counseling is usually done through non-profit organizations. It can also be known as debt management. These programs work with your creditors to negotiate a lower interest rate on high interest credit cards. Debtors need to stick with the program to its entirety or they will see their rates go back to what they were.
The entire amount of the debt is paid back through the credit counseling programs – as accounts are not closed in the process.
Credit scores are not negatively impacted as a result. Unfortunately the success rate for these programs are not very high.
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