 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... |
|
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.... |
A more complete debt settlement calculator
|
|
| Rhode Island |
|
Many Rhode Island residents have found themselves in credit card debt problems in recent years. The underlying causes vary on a case by case basis, but the reality remains the same: the need for quality debt consolidation and consumer credit counseling has become gradually more important. Unfortunately, not only are people in the dark about debt management for credit cards, but they are also unaware of the protections that are in place to ensure that the services they receive are affordable and legitimate. The purpose of this page of PayingPaul.Com is to teach Rhode Island consumers about what personal debt relief solutions are here to help, as well as what to look for from a company. Credit counseling is typically offered by non profit companies. If your situation permits, these organizations may enroll you in a debt management plan, which involves working with credit card companies to reduce your finance charges. Although your plan may be administered by a non-profit, this is no guarantee that there services are legitmate or even affordable. Debt settlement is quite different. These companies will work on your behalf to negotiate a lump sum debt settlement. This means you can pay off your debt for less than what you actually owe. Although the promises these companies offer may be tempting, these programs are risky and a difficult process to go through. When a consumers enrolls in a settlement program, they stop paying their creditors and start saving money each month in a separate bank account until enough funds have accumulated to offer a settlement. Once this happens, the company will contact the creditors and negotiate to get them to agree to accept a lump sum, in many cases for much less than what is owed, to completely satisfy the balance. Unfortunately, because you are past due during the course of the program, your credit will be impacted, and you will experience collection activities, from annoying phone calls and threats to even litigation. Do you want to talk to someone about how to reduce debt? Submit a form today and let PayingPaul.Com match you! Rhode Island Debt Management Laws Rhode Island was one of the first states to adopt the Uniform Debt Management Services Act (UDMSA). This law regulates the debt consolidation industry in the state and includes rules about what fees can be charged, what disclosures a debt contract should include, and other numerous other provisions meant to protect consumers. Definition Rhode Island law defines “debt management services” as “services as an intermediary between an individual and one or more creditors of the individual for the purpose of obtaining concessions.” Fees Debt consolidators that fall under the definition of a “debt management service” are required to abide by the following fee limits: Credit Counselors (a) $50 for a consultation, setting up an account, obtaining a credit report (b) The lesser of $10 per account enrolled in the plan or $50 for a monthly service fee Debt Negotiation Companies (a) The lesser of $400 or 4% of the amount of debt enrolled in the program (b) The lesser of $10 per account enrolled in the plan or $50 for a monthly service fee (c) 30% of the savings off the principal balance at the time of settlement, which must be credited against any fees paid in reference to points (a) and (b) above Exemptions It should be noted that the following parties are exempt from the provisions of the Rhode Island Debt Management Act: (a) attorneys licensed in the state (b) certified public accountants licensed in the state (c) financial planners licensed in the state Registered Debt Counseling Agencies Debt Free America Alliance Credit Counseling American Consumer Credit Counseling American Debt Solutions ClearPoint Financial Solutions Consolidated Credit Counseling Services CCCS of San Francisco – Consumer Credit Counseling Services Consumer Credit Management Services Consumer Education Services Consumers Alliance Processing Corp Credit Foundation of America Cricket Debt Counseling Debt Education and Certification Foundation Express Consolidation Family Financial Education Foundation Financial Freedom Christian Counseling Services NovaDebt Garden State Consumer Credit Counseling Services Golden State Debt Management GreenPath Debt Solutions Help Ministries Inc / Debt Free I Pay Debt Financial Services MHRH Retirement Association National Foundation for Debt Management North Seattle Community College Foundation DBA American Financial Solutions Take Charge America The Credit Network Other Resources Filing Bankruptcy in Rhode Island Bankruptcy Laws in Rhode Island Debt Collection in Rhode Island |
Featured Articles
|
Credit is a useful tool and when handled responsibly allows us to obtain credit cards, loans for homes, cars and other big ticket items. The better we handle our credit, the better the terms that are offered to us from lenders including higher credit lines and lower interest rates.
If, however, a... |
The dismal economy is having an adverse effect on people around the globe with millions facing tremendous amounts of debt. For many, escaping their debt seems like a far off dream but it doesn't have to be! By applying a few simple guidelines to your spending habits, you can begin to reduce credit card... |