With a population of over 285,000 people, Greensboro is the third largest city in the state of North Carolina. The current unemployment rate in the city is about 5.1 percent. The average household takes home $41,628 annually, which is about $10,000 under the national median income rate. The poverty level of Greensboro citizens is 19.3 percent.
With so many individuals living below the poverty level, sometimes there is no other clear choice but to go into debt. This can create a big problem in the long run as lenders are unable to pay back their debts. If you live in Greensboro, NC and are having difficulty repaying your debt, continue to read on about what you can do to get out of debt.
Possible Debt Solutions
Debt relief is available to all residents of Greensboro that are burdened by debt. While there is no one-size-fits-all solution, there are various options that can provide the right relief for each individual.
Debt counseling is a great first start for those needing debt relief. This is where you will discuss your debts with a debt counselor. They will help to construct a budget and advise you how to proceed with other debt relief options. This is more of an initial stage where you get an evaluation and knowledgeable recommendation on where to start to get out of debt.
If you have multiple forms of debt, it may pay to get a consolidation loan. The basic concept of this method is to take out a consolidation loan that covers the total cost of all your outstanding debts. You pay off all those debts with the loan funding, which leaves you with just the consolidation loan debt.
The benefit to this method is you can get a lower interest rate on the consolidation loan as compared to other debts that you currently owe on. One benefit that many people love about this type of debt relief is they only have to worry about the one consolidation loan payment each month. They don’t need to struggle with keeping up with multiple payment dates with different amounts.
If you are unable to get approved for a consolidation loan, debt resolution can be the next relief option for you. This is where you contact a debt settlement firm. They will speak to creditors on your behalf and work on settling the current amount you owe for less. For example, if you owe $5,000 on a credit card, a debt settlement firm will negotiate for less. This could be a settlement of $3,000 with a lump sum payoff and closing of the account.
During the debt resolution process, borrowers stop paying their existing creditors. Instead, they pay into an escrow account set up by the debt settlement company. As the amount in the escrow account grows, the settlement firm will contact your creditors one by one to offer a one payment settlement amount. The negotiations will go back and forth between the settlement firm and your creditors until they agree on a payback amount.
Debt resolution can help to eliminate your debt for less than you owe. This makes it an ideal option for those wanting to avoid bankruptcy. However as a consumer, you need to realize that your creditors will be reporting your missed payments during the negotiation period where you are funding the escrow account. This can have a negative effect on your credit score.
Who Should Get Debt Relief?
Typically, those who owe more than $10,000 in unsecured debt and are behind on their payments should look into debt relief. There is no actual set amount of debt you need to have to qualify for these relief programs. The decision is more based off of what you can afford. If you are having trouble paying back your debts and you are months behind on payments, then you should seek assistance.
Who Can Help With Debt Relief?
In the city of Greensboro, North Carolina, CESI is a non-profit debt relief business. They can help residents with debt management, student loan solutions, bankruptcy counseling, as well as give financial education and instructions.
A second option is the Consumer Credit Counseling Service (CCCS) of Greater Greensboro. This firm can help with bankruptcy, budget counseling, credit counseling, housing counseling, debt management programs and financial education.
If you need help understanding your finances or anything regarding financial assistance, either CESI or CCCS can help you.
Greensboro Debt Relief Laws
As a consumer, it’s imperative you understand your rights when it comes to debt collection and relief. The Federal Government has imposed the Fair Debt Collection Practices Act (FDCPA), which all states must follow. This Act outlines how creditors and collection agencies may conduct business with borrowers they’re attempting to collect a debt from. There are too many aspects of this Act to outline here, however, they mainly contain to not coercing, using violence, or threatening the borrower.
The North Carolina Government has also constructed their own state laws about debt collection. This can be found in the NC Debt Collection Act. One of the most important things to understand about this Act is that it outlines the statutes of limitations for specific agreements. These statutes impose a restricted timeframe for when creditors can take legal action against delinquent borrowers. If creditors don’t take legal action by the end of the time frame they forfeit their right to do so. As a borrower, knowing this time frame is important to understanding when you are legally relieved of your debt.