Omaha is the largest city in the state of Nebraska. It houses just over 443,800 residents and 37,644 businesses. The average household brings in an annual income of $49,896. Out of the entire Omaha population, about 16.7 percent are living below the poverty level. These individuals tend to rely on debt, such as credit cards, to pay their monthly living expenses. This can add up quickly over time and create massive loads of debt that can seem unbearable to payback.
How Can Debt Relief Help?
Individuals who have found themselves in a position where they are unable to pay back their debts can greatly benefit from debt relief. This type of relief is available in different programs depending on what your current financial situation is. All programs of debt relief are aimed at helping individuals create a plan to pay back their debts and regain control over their financial well-being.
Who Qualifies For Debt Relief?
Anyone who has debt can seek assistance from debt relief. The reasons that there are different debt relief programs is because individuals are at different stages of debt. For those who are feeling overwhelmed or may be a month behind on their current debt bills, seeking the help of a debt management program is a great idea.
For others that are months behind on their repayments, using a debt consolidation loan or settlement agency is a better option. Regardless of how much debt you owe, you are eligible for at least some of the debt relief programs offered.
What Kinds Of Debt Relief Are There?
There are three different kinds of debt relief that you can get to help with your financial situation. Let’s take a closer look at each one of these below so you can determine the best place to start.
Through the help of a non-profit agency or a paid agency, you can get help with your debt and budgeting plans. These agencies will contact your creditors to help negotiate better rates and lower monthly payments. This is meant to assist you in making your debt more manageable for your income level
Debt Consolidation Loan
This type of loan works by taking out a large sum of money and repaying all your existing debt. The benefits include a lower interest rate than your current debt and one monthly due date. This helps to simplify the debt paying process.
Debt settlement is meant as a last resort before bankruptcy. A settlement company will contact your creditors to discuss a lump sum settlement amount, which is typically less than you actually owe. This method takes time as you need to build up your savings to be able to provide lump sum pay offs to your creditors.
Who Offers Debt Relief?
There are a few businesses spread throughout Omaha, Nebraska where you can get financial help and debt relief. Credit Advisors is a popular company that is geared towards helping you establish a workable budget and consolidating your current debts. GreenPath Financial Wellness is a credit counseling firm that can help you resolve your financial problems and be on the way to financial success.
What Laws Pertain To Debt Relief?
Many of the laws established by both the State and Federal Governments are intended to put restrictions on the practice of debt collection from lenders. These are to ensure that consumers are being treated fairly during the collection process. As a consumer, you should be knowledgeable of your rights when it comes to the debt collection practice. These rights are by no means intended to help you avoid paying back your debts, but rather ensure you get treated in an acceptable manner by your lenders.
The Federal Government has established the Fair Debt Collection Practices Act which outlines how debt collection should be practiced. There are many components to this act, but we’ve take the liberty to include a few section summaries below.
- Collectors must contact borrowers between the hours of 8am and 9pm, unless otherwise agreed to by the borrower.
- Collectors may only contact known relatives or associates of the borrower to obtain contact information for the borrower and they must not at any point reveal any information about the borrower’s debt.
- Collectors may under no circumstance threaten bodily harm to borrowers.
- Collectors may not threaten repossession of a borrower’s property unless specifically agreed upon in the contract as a form of collateral.
The Nebraska State Government has enacted Statutes Of Limitations regarding the right of lenders to sue borrowers for non-payment. These statutes outline a specific limit of time that a lender may take legal action against a borrower after delinquency occurs. If the lender doesn’t take action within the stated time period, they forfeit their right to do so in the future. After the statute is up, the borrower is no longer legally responsible for the debt.
These Statutes Of Limitations Include:
- Written Agreements – 5 Years
- Oral Agreements – 4 Years