 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
|
|
| Washington |
|
Many Washington residents, much like the rest of the country, have fallen on hard times in recent years and found themselves having problems managing credit card debt. With a proliferation of debt consolidation and consumer credit counseling agencies out there promising the world, regrettably some consumers have been duped. The purpose of this page of PayingPaul.Com is to help educate Washington consumers on their debt management options and the laws that protect them from unscrupulous companies. There are two kinds of credit card debt reduction currently being offered today. The first, credit counseling, involves restructuring your debt so that your interest rates are lowered, your payments are consolidated, and becoming debt free is easier. Many of the organizations who offer these services are non-profits, but they do charge fees and it is no guarantee that their services will be affordable. Another type of debt consolidation program is debt settlement. When enrolled in these programs, a debtor stops making payments to their creditors and instead saves money monthly into a separate bank account. Once sufficient funds have accumulated, the settlement company will negotiate a lump sum pay off, in many cases for a significantly reduced amount. While funds are accumulating, however, your creditors will consider the debt past due, which will lead to collection calls and possibly legal action being taken. These services are generally best used as a last resort before bankruptcy because the consequences for your credit can also be serious. Want to talk to someone about how to get out of debt? Submit a form today and let PayingPaul.Com match you with a debt assistance company! Washington Debt Management Laws Washington has regulations in place that are meant to protect consumers from the potential financial loss of enrolling in a debt management program that is low quality and unaffordable. Among other things, the law defines what a debt consolidation company (or “debt adjuster”, which is the term the law uses), can charge, what provisions must be included in their contract with a debtor, and much else. Definition Washington defines debt adjusting as, “the managing, counseling, settling, adjusting, prorating, or liquidating of the indebtedness of a debtor, or receiving funds for the purpose of distributing said funds among creditors in payment or partial payment of obligations of a debtor.” Fees Washington law requires that all debt management companies abide by the following fee limits: -15% of the total debt included in the plan -the fee from any one payment cannot exceed 15% of that payment -$25 as an initial fee Contract Requirements The law requires, among other things that, that a contract include the following disclosures: “NOTICE TO DEBTOR: (a) Do not sign this contract before you read it or if any spaces intended for the agreed terms are left blank. (b) You are entitled to a copy of this contract at the time you sign it. (c) You may cancel this contract within three days of signing by sending notice of cancellation by certified mail return receipt requested to the debt adjuster at his or her address shown on the contract, which notice shall be posted not later than midnight of the third day (excluding Sundays and holidays) following your signing of the contract” Exemptions It should be noted that Washington does exempt the following parties, among others, from regulation under the law: - Attorneys-at-law, escrow agents, accountants, broker-dealers in securities, or investment advisors in securities, while performing services solely incidental to the practice of their professions; - Nonprofit organizations dealing exclusively with debts owing from commercial enterprises to business creditors; -Nonprofit organizations engaged in debt adjusting and which do not assess against the debtor a service charge in excess of fifteen dollars per month. If you want more information about consumer credit counseling and debt consolidation in the state, feel free follow this link: http://apps.leg.wa.gov/RCW/default.aspx?cite=18.28 Other Resources Filing Bankruptcy in Washington Bankruptcy Laws in Washington Debt Collection in Washington |
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... |