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If you are struggling with debt, Texas debt relief programs may be able to help. As the common saying goes; “Everything is Bigger in Texas”, and this includes debt owed as Texas debt situation is not an exception owing to the pandemic. The hope is to eliminate their debts as much of their debt.
Texans owe debts for student loans, household debt, auto loans, and credit cards. Debt settlement is a type of Texas debt relief that allows them to pay less than the amount owed to settle their debt instead of filing for bankruptcy.
The interest rate of the debt is also lowered. Debt settlements affect the debtor’s credit score and stay there for years.
Dealing with a debt collection agency is the nightmare of all debtors. Creditors can seek alternative methods to ensure you pay them what you owe them.
Methods such as using a debt collection agency or filing lawsuits against the debtors. Texas debt relief programs help formulate a repayment strategy. They include debt consolidation, debt settlement, and credit counseling.
Debt Consolidation
Debt consolidation loans offer solutions to Texans with thousands in credit card debt and loans. It lets you save tons of money as you will be given a low-interest loan to pay off a high-interest credit card debt.
The debtor has to meet the qualification requirements for this loan. It would help if you had a good credit score and a low debt to income ratio.
Credit counseling agencies
Credit counseling is suitable for individuals who do not meet debt consolidation loan qualifications. Creditors agree to lower the amount owed, and the debtor makes fixed payments to clear the debt. Credit counseling is a hardship plan and reduces credit card interest rates.
Debt settlement
Debt settlement companies or lawyers will negotiate with the creditor on your behalf.
There are fees with this service. Texans can benefit from debt settlement lawyers and companies because they have experience dealing with creditors. Lawyers will provide you with legal advice throughout the process.
Debt settlement will allow you to pay less than the amounts owed. Debt settlement can damage your credit score, which will stay for seven years.
Through this program, creditors will continue with their collection efforts.
Benefits of Texas Debt Relief Program
Advice from the pros; The experts take them through various debt relief programs and choose the best for their situation.
Free from debt provides them a shorter period of paying their debts instead of adding more debt by using longer payment schedules.
Savings: Texas debt relief programs reduce the overall amount you owe them, the interest rate, and the amounts they pay monthly.
Debt Collection Agencies
Creditors seek the help of debt collection agencies to manage their client’s debts. Texans may have encounters with scams during their attempts to settle their debts.
In some cases, debt settlement companies may not make an agreement with the creditor leading to bigger loans.
Also, not all Texans can access the Texas debt relief programs; they are forced to deal with collection agencies.
The creditors sell the debt to a collection agency and then harass you into paying more than is required.
Private Debt Collectors
Creditors use various ways to make the debtors pay their loans. Private debt collectors may work for creditors or other debt collection agencies.
Private debt collectors do not have legal powers. A debt collector can visit you at home and speak to you discretely about the debt.
In-person contact with the debtor increases the debt recovery process. Ignoring debt collectors may lead to further actions to recover the money you owe them, such as court action.
There are things a debt collector cannot do:
Private debt collectors cannot take away your belongings
Pretend that they are enforcement agents
Visit you at your workplace
Act in a threatening or intimidating manner
Texas Debt Relief Laws
The Texas Debt Collection Act regulates creditors. Debtors have rights. Creditors who violate the debt collection Act are subject to penalties.
Creditors are sometimes forced to bring in a debt collection agency, especially if it looks like you will not pay the debt. Debt collectors are harassing. Debtors should always know their rights.
The law prohibits the collector from doing the following things:
1. Call debtors anonymously
2. Make repeated calls
3. Contacting Debtor at inconvenient times
4. Taking away home or wages (unless loan was to buy the house or home improvement)
5. Using any conduct to harass, oppress, or abuse, including the use of obscene language
6. Threatening violence
7. Criminal acts
8. Seizing property without proper court rulings
9. Fail to disclose the full name of the caller
10. Failing to identify who holds the debt
11. Attempting to collect more than the amount owed
12. Faking court document
Texas Debt Relief Protection
How to know if a debt collector is a scammer
Pressure: If a debt collection agency is trying to create a sense of urgency or threats, they are probably scammers.
Legitimate debt collectors may only be aggressive but will not use threats. If you come across a debt collector who uses any threats against you, they are not legit.
Notification Not Mailed: Because a creditor seeks the help of a debt collection agency, they should notify you in writing.
The correspondence should disclose the amount in question and the creditor’s name. If you do not receive mail, you are dealing with a scammer.
Hide Contact Information: A legitimate collection company should allow you to contact them if necessary.
How to Protect Yourself from a Scammer?
Contact your creditor to know if they have any information about the debt. Ensure that you confirm that the debt collection agency matches your creditor has.
Don’t disclose any financial information. Do not share any information the scammer doesn’t already know.
Texas Debt Relief Summary
Texas debt relief programs provide Texans the best opportunity for struggling with overwhelming loans. Many debt relief agencies are dedicated to providing Texans with solutions to their debts.
Debtors should always avoid dealing with debt collection agencies and reach out to their creditors and negotiate a good plan.