People who seek debt consolidation in New Hampshire feel overwhelmed with overdue bills resulting from an illness, unemployment or simply spending too much. Regardless of the reason, relief from the financial weight becomes a primary survival force.
Exploring different options available is one way to feel a sense of control to getting out of the situation. Understanding how laws work in the state is equally helpful on a person’s road to financial recovery.
Debt Relief Laws and Regulations in New Hampshire
The Fair Debt Collection Practices Act (FDCPA) is followed in New Hampshire for standards of collecting debt in the state. For instance, collection agencies cannot charge more than 10% interest on debts owed.
- When collecting debt, both the original creditor and creditor collecting debt must be in compliance with all provisions of FDCPA. The only exception is for provisions related to required disclosures.
- The original creditor or debt collector are not allowed to communicate with third parties about the debt. This includes spouses or anyone living with debtor unless it is an attempt to locate the debtor. With this exception, the collector must not have been able to locate the debtor for 30 days. The third party cannot be contacted more than once.
- The original creditor or debt collector can only call the debtor at work once a month. The exception to this regulation is if the debtor agrees in writing to receive frequent calls.
- The original creditor or debt collector cannot send mail to the debtor’s place of employment more than once unless the collector has not been able to locate the debtor.
Socioeconomics in New Hampshire
New Hampshire’s unemployment rate was 2.6% as of January 2017, which places the state in a good place nationally. The median household income is $66,779 and credit card debt averages approximately $7,937. As the second highest in the United States, the average resident has a 711 credit score. This is considered “good” or “excellent” on the credit spectrum.
As of the last Census in 2010, the total population in the state was over 1.3 million with a solid labor force. Occupations in the Office and Administrative Support sector account for the highest number of workers. Ranked second is Sales and Related occupations. Food Preparation and Serving occupations is the third ranked sector employing New Hampshire residents.
Wealth and Poverty in the State
Although New Hampshire as a solid showing of employed residents, with more than half working in the top three sectors and other fields, the state has its share of residents who are living in poverty. It is estimated that 8.2% of New Hampshirites are at the poverty level.
From 2012 to 2014, New Hampshire ranked third with 10% of households facing food insecurity. This means that at some point during the year, families found it hard to have enough to eat because they did not have enough money or resources.
Another vulnerable scenario where households may consider debt consolidation is the income inequality ratio. The ratio of the share of income for the top 20% of households and bottom 20% is 12.3 for the state.
Approximately 3.5% of households used high risk forms of credit such as:
- Title loans
- Payday loans
- Pawning valuables
- Refund anticipation loans
- Rent-to-own retailers
How Debt Relief Provides Benefits
Debt relief provides several benefits to New Hampshire residents who find themselves in a financial jam.
Relief from Crushing Debt
The goal of any type of debt consolidation or settlement plan is not to help a person avoid creditors. Rather, the goal is to start down a path that will get the person out of debt without enduring embarrassing and stressful calls from creditors.
Shorten the Time for Paying off Debts
With a good debt settlement program, a person repays debts within two years. Some plans may take up to four years depending on the total amount of the debt. Typically, this is less time than it would take to become debt-free without a consolidation plan.
A primary reason people will choose debt settlement is so they can avoid bankruptcy. Settling debts with creditors eliminates the consequences of this type of filing. Typically, resolving debt through bankruptcy follows the person for years. The aftermath can interfere with loan, credit card and even job applications.
Prime Candidates for Debt Relief
Many families have an average of $16,000 in credit card debt. This does not include other bills such as mortgage loans or medical debts. What it does reveal, however, is that you are not alone. Your reasons for struggling with debt could be due to lost income, either from losing a job or no raise while expenses increase.
Underemployment and divorce can also have a tremendous impact on your ability to pay what you owe. This is no reason to be ashamed. It is the right time for you to consider debt relief so you can begin changing your financial course.