 With the struggling economy, many people are finding themselves deep in credit card debt. Therefore, consumers are forced to turn to debt consolidation in order to get control of their finances. However, before a person decides to consolidate their credit card debt, they need to be aware of the credit... |
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Living with debt is by no means easy. There’s the constant concern of living paycheck to paycheck and the never ending issue of covering monthly bills and living expenses. While most of us pride ourselves on being self-sufficient, it’s hard to ignore that we all sometimes live well beyond our means.... |
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| Pennsylvania |
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Pennsylvania is a state that has its own fair share of consumers in credit card debt. Due to this fact, it has become increasingly important for debt consolidation companies and consumer credit counseling agencies to offer effective help. Consumers also have a responsibility – to become educated about their options for debt management. Ultimately the choice for help lies on you, and PayingPaul.Com is here to help! This page is a brief overview of the programs available to Pennsylvania consumers, as well as information to protect debtors from companies that may not have their best interest in mind. In general, there are two types of unsecured debt relief being offered today: credit counseling and debt settlement. Credit counseling is the oldest kind of debt consolidation service. It is usually offered by non profit debt companies who work with creditors to lower high credit card interest, waive or avoid late penalties and over the limit fees. Although these programs are offered by non-profits, this in itself is no guarantee that their services are affordable or even legitimate. Debt settlement, also known as debt negotiation, takes a much different approach to resolving your credit card accounts. Through negotiations with your creditors, debt settlement aims at reducing your balances by up to 60%. These programs in many cases is the fastest method to get out of debt. One must consider some of the downsides, however, including the fact that one must be behind on their payments in order to settle their debts. This leads to any number of problems, from damage to one’s credit score to creditor calls to legal action being taken by a creditor in some cases. Pennsylvania Debt Management Laws Pennsylvania’s laws regulating the debt consolidation is somewhat outdated and offers very little (or nothing) in terms of capping fees, contract requirements, and other provisions that most states have in place to protect consumers. According to Pennsylvania law, “debt pooling”, which is an old-fashioned term for “debt management,” is outlawed. Definition The law defines “debt pooling” as, “The making of a contract, express or implied, with a debtor or debtors whereby the debtor agrees to pay a sum of money periodically or otherwise to another person for the purpose of having such other person distribute the same among certain specified creditors in accordance with a plan agreed upon, or to be agreed upon, and whereby such other person shall receive a consideration for any such services rendered, or to be rendered, in connection therewith.” Exemptions Update: Pennsylvania has changed their debt management laws to better reflect the current debt help services landscape. There are exemptions to who can engage in debt counseling in the state. They are: 1. Attorneys licensed in Pennsylvania 2. Non-profits For more information about consumer credit counseling & debt consolidation in Pennslyvania, feel free visit this link: http://members.aol.com/StatutesP9/18PA7312.html Other Resources Filing Bankruptcy in Pennsylvania Bankruptcy Laws in Pennsylvania Debt Collection in Pennsylvania |
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