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Have you fallen behind in paying your bills? Do you fear checking the mail, because you know that it is full of bills that you simply cannot pay? Don’t worry, there is hope.

Debt settlement in Houston, TX allows you to work with your creditors to reduce your financial burdens. This is completely legal and financially beneficial to all parties. Here is a debt settlement guide reviewing the relevant Texas socioeconomic statistics, debt relief laws and Houston debt relief resources.

Texas Socioeconomics

Texas is the 2nd-largest state with a 2016 population of 27,862,596. The 2010 per capita income for the state was $38,609 with an unemployment rate of 8.2%, according to the Texas Department of State Health Services. The Zillow Home Value Index (ZHVI) for Texas was $163,100 on March 11, 2017.

Wealth & Poverty

According to the Texas Tribune and United States Census, the area north of Brownsville, Willacy County had the highest rates of poverty at 38.8%. Starr County was the second worst area in the state with 35.4% of the residents living in poverty.

Who Needs Debt Relief?

Each debtor has his own personal story to tell. You might have accumulated a lot of debt while you were in college. Of course, you hoped for a well-paying job. Unfortunately, the job market was very soft and you were forced to live with your parents.

On top of this student debt, you might have added car debt. How could you get around without your own private transportation? Now, your bills keep piling up. What can you do?

When you take out a loan, you have made a legal contract, promising to repay the loan. Each monthly payment must be made on time or you are technically in default.

If you are spending more time arguing with your wife about money, then you might need some serious debt help. If you can’t sleep due to stress, then you might need some debt relief. Debt settlement in Houston, TX can help.

Benefits of Debt Relief

It can be very difficult to admit that you have a problem. Debt relief can help you identify your financial woes and provide solutions therefore.

You are not alone. There are many people struggling with high debt loads. Through credit counseling, you can learn about your financial responsibilities, rights and laws protecting you against debt collectors. You can even negotiate better terms for your loans through debt negotiation.

How can you repay your debts, if you have fallen behind?

At a certain point, you must face the reality that you “simply cannot repay your debts.” The present circumstances must change. You don’t want to file bankruptcy because of the negative ramifications. That is when debt settlement in Houston, TX is the answer. This is a way to deal with your financial problems without filing bankruptcy.

Texas Debt Relief Laws

The State of Texas Attorney General Office has helped identify the best debt relief organizations. Here are the three primary debt relief categories listed by the Texas attorney general:

  • Credit Counseling
  • Debt Consolidation
  • Debt Settlement

According to the State of Texas, credit counseling services involve “re-evaluating your spending and saving habits.” Oftentimes, people don’t balance their checkbooks and suddenly find themselves “behind the eight ball.” With good credit counseling services, you can develop a “debt management plan” (DMP). You will continue to repay your debt, but it will be a single lump sum instead.

The truth is that under the DMP, you have a form of debt consolidation, already. Sometimes, you miss payments because you have too many loans, each with their own due dates and interest rates. Debt consolidation can create one payment and one interest rate for all your loans. Wouldn’t that be nice?

Sometimes, simply contacting your lender about your situation can help. You might have lost your job and missed a payment. With debt settlement (or negotiation), you honestly admit that you cannot repay your loan based on the existing terms and conditions. You might try to renegotiate your loan, by making a lump sum payment in exchange for some debt being written off.

Houston Debt Relief Resources

The City of Houston is well-known for its energy resources. As of 2014, its population was more than 2.2 million. Here are a few of the Houston debt relief resources available:

  • Houston Volunteer Lawyers Program
  • Johnson & Bryan Lawyers
  • Lone Star Legal Aid

Attorneys are required to offer some free legal sources to the community at large; therefore, you might be able to find local Houston lawyers who will provide debt relief assistance. Generally, a bankruptcy lawyer will have the knowledge to help you make the best financial decisions.

The Texas Office of Consumer Credit Commissioner can help you select the right debt relief organization. Some are non-profits licensed by the state. These will perform an in-depth evaluation of all your monthly expenditures to determine the extent of your problem.