 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
|
|
| South Dakota |
|
Much like the rest of the United States, many South Dakota residents are under a mountain of credit card debt, and although debt consolidation programs and consumer credit counseling services are widespread on television and online, few people really understand how debt management works or what company is legitimate. PayingPaul.Com is here to take the mystery out of debt relief and the agencies who provide them. In order to determine the best solution for you, one must learn about the options that are currently being offered today. One choice is debt settlement, also known as debt negotiation. This is an innovative but risky approach to managing your debts. In a settlement program, a client falls behind on their credit card payments in order to cause a creditor to accept a lump sum of money equal to 40-60% of the balance in full satisfaction for their debt. The savings can be significant, but there are a few things one must consider before enrolling in this type of program. During the course of the program, the client stops paying their creditors and saves money each month into a savings account. Due to the fact that you are past due, your credit score will be impacted negatively. On top of that, your creditors will continue trying to collect the debt during the course of the program, which means you’ll experience phone calls and in some cases, lawsuits. Another approach is credit counseling. Credit counselors can help you review your budget, and if your situation permits, they may consider enrolling you in a debt management plan. These plans are usually offered by non-profit agencies involve submitting proposals to creditors to help consumers get interest rate reductions and get out of debt faster. Although offered by non-profits, these programs are not for everyone also. Even the non-profits charge fees, so the services may not be affordable or legitimate. Moreover, although better for your credit than settlement, credit counseling can have implications for your credit report as well. Ask your debt counselor to learn more about this possibility. Do you want to discuss your problem with an advisor? Submit a form and PayingPaul.Com will match you with one today! South Dakota Debt Management Laws South Dakota has laws in place that are meant to regulate the debt management industry in the state. The laws, which refer to debt consolidation as “debt adjusting,” prohibit offering debt management services altogether. Definition The law defines “debt adjusting” as: “the making of a contract, express or implied, with a debtor whereby the debtor agrees to pay a certain amount of money or other thing of value periodically to the person engaged in the debt-adjusting business who shall, for consideration, distribute the same among certain specified creditors in accordance with a plan agreed upon. The term includes debt adjustment, budget counseling, debt management, or debt-pooling service or the holding of oneself out by words of similar import as providing services to debtors in the management of their debts and contracting with the debtor for a fee to effect the adjustment, compromise, or discharge of any account, note, or other indebtedness of the debtor or receive from the debtor and disperse to his creditors any money or thing of value. The term, debt adjuster, means a person who engages in, attempts to engage in, or offers to engage in the practice of debt adjusting.” Fees The state does not regulate what fees can be charge, which is due to the fact that debt adjusting is prohibited. Exemptions It should be noted that the following entities, among others, can engage in debt management: (1) attorneys licensed in South Dakota who engage in debt adjusting incidental to the practice of law (2) non-profit organizations For more information about consumer credit counseling and debt consolidation, feel free to follow this link: http://legis.state.sd.us/statutes/DisplayStatute.aspx?Type=Statute&Statu te=37-34 Other Resources Filing Bankruptcy in South Dakota Bankruptcy Laws in South Dakota Debt Collection in South Dakota |
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... |