With the rate of unemployment sitting at about two percent of the national average, New York State is indeed experiencing tough times. Although the state’s average income remains high, the living standards of its residents have substantially fallen in recent years. One out of ten New Yorkers is actively looking for a job, and many thousands are facing forced retirement. The state’s economy is nothing but dull!

Debt Consolidation Loans in New York, NY

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With such an environment, it shouldn’t be shocking to learn that New Yorkers are accumulating debt at a high rate. If you are in New York and find yourself with piled up medical bills, credit card bills, or any other debts, then you should look for a debt consolidation strategy. A debt consolidation company will negotiate for a favorable payment plan for your pending debts with your creditors. You will then be required to make periodic payments to the consolidator’s escrow account to be disbursed among the creditors.

Benefits of Debt Relief Services

With debt relief services, you will be able to:

  • Avoid Going into Bankruptcy-Settling your debts will help you to avoid filing for bankruptcy and later dealing with the effects of bankruptcy.
  • Get Relief from Overwhelming Debts- Those having trouble paying their debts can find relief from a debt consolidator. After negotiation and full settlement of your debt, you will be debt free in no time and also at a lower cost compared to if you tried paying it off on a regular repayment schedule.
  • Repay Your Debts Quickly- A good debt settlement plan will help you settle your debts within two to four years, which is much less time compared to how long you would take if you were paying your debts typically.

Who are the Prime Candidates for Debt Relief?

To qualify for debt relief, you:

  • Must owe over $7500 and be many months behind in your remittance
  • Should be able to make monthly payments into an escrow account, to be used to pay your creditors
  • Must be undergoing a financial crisis without hope for a quick end. This can be because of a recent reduction in working hours, job loss, death of a spouse, divorce or separation which lead to a decrease in income, student loans, and unexpected medical bills among others.

Remember, the consolidator has to substantiate your financial hardship to your creditor for them to see that you need a debt relief program. To see if debt consolidation is the best catch for you, reach out to a credit counselor accredited with either the Financial Counseling Association of America (FCAA) or the National Foundation for Credit Counseling (NFCC)

Debt Relief Laws/Regulations in New York

The Federal Trade Commission [FTC] prohibits debt collectors from:

  • Threatening consumers or their families with violence
  • Using foul language on consumers
  • Calling at weird hours
  • Calling more than necessary to pressure you into settling your debt
  • Seizing your bank account, wages, or property unless authorized through the correct legal proceedings
  • Pretending to be lawyers, government official, or credit agency official
  • Contacting anyone besides you
  • Collecting interest on top of your debt unless authorized through an authentic prior contract

The Fair Credit Reporting Act requires that if you provide your creditor or their collection agency with a prompt written notification that you challenge their debt claim, they should hold off their claims that you have declined to pay their supposed debt, at least temporarily.

New York, Connecticut, and New Jersey laws may offer extra protections. Make sure to check with a government agency, debt counselor, or bar association in your area for more information on this.

Conclusion

It is common to get overwhelmed by debt. Maybe your hours got cut, you lost your job, or you simply got behind on your bills. Whatever brought you to this point, you are unable to handle your debt. There is no need to panic because there is a solution for you. You will not have to file for bankruptcy! Just look for a debt consolidation company and start your journey towards a debt-free life. You can get more tips on debt settlement companies from here.