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The largest city in the state of Alaska, Anchorage, is home to over 298,000 residents. The average household brings in $78,300 every year in earnings. The unemployment rate of the city is 5.3 percent (2015 study), with about 8.2 percent of the population living below the poverty level. Those who are below the poverty level and those who are having trouble paying back the debt they owe are advised to participate in a debt relief program.

Debt Relief Programs

Every person’s finances are different as is proven with the assignment of a unique credit score to fit their history. There are multiple different debt relief programs that citizens of Anchorage, Alaska can take advantage of. The point of all these programs is to assist you in creating a plan and executing it to get out of debt. If you are in need of debt help, be sure to review the programs below to find the best program for you.

 Credit Counseling

When you enroll in credit counseling you will get financial assistance from a nonprofit credit agency. Their advisors will help review your budget, understand the amount of debt you owe, and decide on the best solution to eliminate your debts.

Benefits include:

  • Typically Free Advise
  • Learn Financial Knowledge
  • A Thorough Evaluation Of Your Situation
  • An Educated Suggestion On What To Do Next

 Debt Management Plan

The goal of this plan is to decrease your monthly payments, interest rates, and fees. In a debt management plan, you are still responsible for paying back the entire principal of your debt, just under newly established repayment terms.

Benefits Include:

  • More Managable Monthly Payments
  • Opportunity To Grow Your Credit Score With More On-Time Payments
  • Stops Debt Collection Calls

 Debt Consolidation

Under this debt relief program, you will take one loan to pay off all your debts. The general concept is that you will not only be able to simplify your finances significantly, but you will likely be able to get a lower interest rate than you current have.

Benefits Include:

  • Eases Your Financial Stress
  • One Monthly Payment With One Due Date
  • Stops Deliquency Reports

 Debt Settlement

In this program, an agency will speak to lenders on your behalf. They will negotiate a pay off balance of less than the full balance you currently owe. Lenders are paid in a lump sum balance and your accounts are closed out.

Benefits Include:

  • Settling Debts For Less Than You Owe
  • Experienced Agency Experts
  • Ease Financial Stress

 Who Qualifies For Debt Relief?

There are no set limits on how much debt you need to have to qualify for these programs. Anyone who is struggling with their debt can benefit from the debt relief programs listed above. In cases of debt settlement, many lenders will only settle debt that is multiple months delinquent when the borrower can prove financial hardship.

 What Agencies Service The Anchorage, Alaska Area

There are multiple companies that can help you manage your credit and work with you to formulate a plan to pay off your existing debt. Some of these include Consumer Credit Counseling Service of Alaska, Prime National Credit Repair, and Debt Reduction Services. All of these locations offer credit counseling, debt management, and settlement services.

 Anchorage Consumer Debt Relief Laws

As a consumer, you should be aware of your legal rights when it comes to the debt collection process. These rights are established to ensure you, as the consumer, are not mistreated or tricked into any agreement that would not be best for your financial health.

On the federal level, the Fair Debt Collection Practices Act has established the basis for debt collection practices. The Alaskan Government has established even stricter standards for these practices. These standards can be found in the Alaska Administrative Code in Chapter 1, Article 3, Sections 210 and 220.

Some examples of these laws include:

  • Collectors have no right to threaten repossession of a borrower’s property unless it was used as collateral in the legal agreement.
  • Collectors are prohibited from adding fees on top of the original debt owed by the borrower.
  • Collectors are prohibited from speaking to family members, neighbors, co-workers, or employers about a borrower’s debt.
  • Collectors may not contact borrower’s at their place of employment unless given consent by the borrower and their employer.

In addition to the laws listed above, Alaska also has statutes of limitation that identifies how long a lender has to take legal action against a delinquent borrower. All of these time frames start the day of the first delinquency on the account and end the last day of the given period. After the period has expired, lenders forfeit their right to take legal action against borrowers.

These statutes include:

  • Oral and Written Contracts – 6 Years
  • Promissory Notes and Revolving Accounts – 3 Years