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Debt Consolidation in Missouri
(Note: this is for educational purposes only, and although efforts have been made to keep this up to date and correct, there are no guarantees about the accuracy of anything contained below. It should not be construed as legal advice. For legal advice, please consult with an attorney licensed in Missouri.)
Many Missouri residents, much like the rest of the United States, have found them in need of debt consolidation and consumer credit counseling services. Despite the growing need for consumer debt help, our knowledge of what credit management services are even available is not up to par. The purpose of PayingPaul.Com is to educated consumers about how debt relief works, as well as give insight so people make the right decision about what company to use for assistance.
There are two classes of debt consolidation. The first and oldest is known as credit counseling. For many consumers this is the most appropriate solution. These debt programs are usually offered by a non profit debt company and can help people with budgeting and financial education. If your situation cannot be remedied through these services, they may suggest you enroll in a debt management plan. These programs can help consolidate payments and lower interest charges on most unsecured debt. These programs do come with fees, so there is no guarantee that a debt management plan will be affordable. Do a thorough analysis of an organization before you choose to use their services.
The second type of debt consolidation is known as debt settlement. The goal of these programs is to reduce your debt, not just interest rates. Although you can potentially save substantial sums of money by choosing this, there are some problems associated with this method for debt elimination. For one, during the course of the program, the consumer stops paying their credit cards. Due to this fact, the consumer will experience collection calls, possibly even lawsuits on their debts. Since it is a risky avenue for debt relief, one should only choose this avenue as a last resort before bankruptcy.
Do you want to pay off your debt quickly, but want to speak with an expert about your options? Submit a form today and PayingPaul.Com will match you with a reliable debt professional!
Missouri Debt Management Laws
Missouri has protections in place to help ensure that the debt management programs being offered to its residents are reasonably priced and of a decent quality. The laws, which refers to debt consolidators as “debt adjusters,” defines debt management companies as “person who acts or offers to act for a consideration as an intermediary between a debtor and his creditors for the purpose of settling, compounding, or in any wise altering the terms of payment of any debts of the debtor; and to that end the person receives money or other property from the debtor, or on behalf of the debtor, for payment to the debtor's credit by the person, or distribution among, the creditors by the person.” The law goes on to note that debt management refers specifically to “a person who collects funds from a debtor and delivers such funds to the debtor's creditors.”
As is the case, debt management companies are required to abide by the following fee caps:
-$50 for an initial set-up fee
-the greater of $35 per month or 8% of the monthly amount distributed to creditors as a maintenance fee
It should be noted also that the “debt adjusting” law exempts the following entities:
(1) attorneys licensed in Missouri
(2) employees who act as “debt adjusters” on behalf of their employers
(3) any person acting on a court order
(4) any person who is a creditor of the debtor, so long as it is done at no cost to the debtor
(5) anyone who gives a debtor a debt consolidation loan, who at the authorization of the debtor, acts as a “debt adjuster” in disbursing the proceeds of the loan, at no additional cost to the debtor
For more information about consumer credit counseling and debt consolidation in the state, visit this link: http://www.moga.mo.gov/statutes/chapters/chap425.htm
Other Resources
Filing Bankruptcy in Missouri
Bankruptcy Laws in Missouri
Debt Collection in Missouri
Many Missouri residents, much like the rest of the United States, have found them in need of debt consolidation and consumer credit counseling services. Despite the growing need for consumer debt help, our knowledge of what credit management services are even available is not up to par. The purpose of PayingPaul.Com is to educated consumers about how debt relief works, as well as give insight so people make the right decision about what company to use for assistance.
There are two classes of debt consolidation. The first and oldest is known as credit counseling. For many consumers this is the most appropriate solution. These debt programs are usually offered by a non profit debt company and can help people with budgeting and financial education. If your situation cannot be remedied through these services, they may suggest you enroll in a debt management plan. These programs can help consolidate payments and lower interest charges on most unsecured debt. These programs do come with fees, so there is no guarantee that a debt management plan will be affordable. Do a thorough analysis of an organization before you choose to use their services.
The second type of debt consolidation is known as debt settlement. The goal of these programs is to reduce your debt, not just interest rates. Although you can potentially save substantial sums of money by choosing this, there are some problems associated with this method for debt elimination. For one, during the course of the program, the consumer stops paying their credit cards. Due to this fact, the consumer will experience collection calls, possibly even lawsuits on their debts. Since it is a risky avenue for debt relief, one should only choose this avenue as a last resort before bankruptcy.
Do you want to pay off your debt quickly, but want to speak with an expert about your options? Submit a form today and PayingPaul.Com will match you with a reliable debt professional!
Missouri Debt Management Laws
Missouri has protections in place to help ensure that the debt management programs being offered to its residents are reasonably priced and of a decent quality. The laws, which refers to debt consolidators as “debt adjusters,” defines debt management companies as “person who acts or offers to act for a consideration as an intermediary between a debtor and his creditors for the purpose of settling, compounding, or in any wise altering the terms of payment of any debts of the debtor; and to that end the person receives money or other property from the debtor, or on behalf of the debtor, for payment to the debtor's credit by the person, or distribution among, the creditors by the person.” The law goes on to note that debt management refers specifically to “a person who collects funds from a debtor and delivers such funds to the debtor's creditors.”
As is the case, debt management companies are required to abide by the following fee caps:
-$50 for an initial set-up fee
-the greater of $35 per month or 8% of the monthly amount distributed to creditors as a maintenance fee
It should be noted also that the “debt adjusting” law exempts the following entities:
(1) attorneys licensed in Missouri
(2) employees who act as “debt adjusters” on behalf of their employers
(3) any person acting on a court order
(4) any person who is a creditor of the debtor, so long as it is done at no cost to the debtor
(5) anyone who gives a debtor a debt consolidation loan, who at the authorization of the debtor, acts as a “debt adjuster” in disbursing the proceeds of the loan, at no additional cost to the debtor
For more information about consumer credit counseling and debt consolidation in the state, visit this link: http://www.moga.mo.gov/statutes/chapters/chap425.htm
Other Resources
Filing Bankruptcy in Missouri
Bankruptcy Laws in Missouri
Debt Collection in Missouri