Do you live in Nevada and you don’t know how you can keep up with your debts? Debt consolidation is the best solution for those who are having trouble paying their multiple debts. You will be protected from constant harassments such as getting calls from collection agencies and creditors. This will also help you in restoring your peace of mind and credit report.
Nevada is a state that was hit hardest by the great recession. Its unemployment rates are the highest at 9%. Since 2008, the households in the state have dropped to 992,896 from 115,226,802. The homeownership is at 59.7%, and that is five points below where it used to be a decade ago. From these statistics, it’s evident that most residents can barely manage to pay their debts.
So how does debt consolidation work?
1) Get a personal debt consolidation loan
In case you can’t afford to settle the monthly payments on the credit cards, it’s better to deal with your creditors personally. You can take a consolidated loan to pay off the debts and reduce the interest payments. This will save you money eventually.
2) Get assistance from a BBB (Better Business Bureau) associated Debt Consolidation Company
We all know how stressful and tedious it is to deal with creditors. A debt consolidation company will offer the needed professional expertise to help you tackle your financial problems. Be sure to check if a company is BBB accredited.
Once you have enrolled in any of the two options, you will get the much-needed debt relief. The company you opt for will appoint a debt consolidation attorney whose duty will be to represent you to your creditors. The company will do an analysis of your current financial situation and design a plan that will assist you to get out of the debt crisis and also restore the credit card score. This process will help you to settle your debts faster without barricading your credit report. You get to convert the multiple debts into one affordable repayment.
Debt relief laws in Nevada
A set of laws collectively called the Fair Debt Collection Practices Act is followed in this state.
- The debt collector is not allowed to act as a debt adjuster or consumer debt counseling service.
- The debt collector can’t charge interest or collections fees unless this is mutually agreed upon, determined by the judiciary, or if the interest or fee was added to the original total before the collection agency received the debt.
What are the benefits of debt relief in Nevada?
One monthly payment: A consolidation program helps you to pay all the multiple debts in a single payment. You will then pay the agreed amount to the consolidation company rather than to your different creditors.
It reduces your interest rates: Once you pay all of your debts, your interest rate goes down, meaning you will end up paying less.
You’ll not get harassed by creditors: After enrolling for a consolidation program, all the nasty calls you used to get from your creditors will stop instantly. The appointed lawyer will handle all the communication with credit agencies and creditors.
The extra charges and late fees get waived off: A consolidation program will save you from paying extra charges and late fees, meaning you will not be charged a single cent more than the exact amount you owe.
Avoid bankruptcy: Debt consolidation helps you to stay away from bankruptcy and the effects it causes on your credit score.
Your credit score won’t be affected: Consolidating debts impacts your credit score positively. This is because you’ll pay the original debt by the agreed end of the program.
Prime debts that are eligible for consolidation in Nevada include:
- Personal loans
- Mortgage loans
- Medical expenses
- Credit card bills
- Student consolidation loans
There are some things you must avoid if you are on a consolidation program such as:
- Closing accounts abruptly as this can hamper your credit score drastically.
- Taking out new loans since it increases the debt problems you are trying to solve.
- Signing documents before going through the entire agreement document to check for any loopholes.
- Resorting to balance transfers.