No matter what your best-laid plans are sometimes things you may find yourself in an unwanted financial situation. This happens to the best of us. When you find yourself in a mountain of debt, it can leave you feeling helpless and frustrated. You do not have to feel this way. Several companies and agencies are available to help you escape the mountains of debt. It will take careful and deliberate planning in order to do this. If you are dedicated to finding a solution to your debt problems, you can do it with debt settlement in Memphis, TN.
Laws That Govern Debt Collection in Tennessee
Tennessee follows laws that are set by the federal government as they relate to collection agencies. These laws are the Fair Debt Collection Practices Act. If you live in Tennessee, the maximum amount that these agencies can charge is 10%. Additionally, this Act states that Tennessee residents have wage protections that go up to 75%. Debt in Tennessee is covered by a statute of limitations. What this means is that after a certain amount of time your debt will become invalid. For written contracts and oral agreements the statute of limitations is six years in Tennessee.
Poverty and Wealth in Tennessee
Before understanding how debt plays a role in your finances take a step back and understand how poverty plays a role in the state of Tennessee. Tennessee is a state where one can find high rates of poverty in the Appalachian region yet walk down to Williamson County and find the wealthiest people in the state. Oftentimes, the wealthiest parts of the state are often the healthiest. Some of the people in the poorest parts of the state have suffered multi-generational poverty. In other words, poverty is a way of life for them. They may have never sought out ways to solve their debt relief problems because they may not have known that they had an option.
Prime Candidates for Debt Relief
People who benefit best from that relief of those that have trouble managing their debt. This debt can be as simple as $1,000 to up to or even more than $100,000. Debt relief assists these individuals because it helps them create a strategic plan for eradicating their debt. It gives them tools and offers them ways to manage and eliminate debt.
The Benefits of Debt Relief
Debt relief offers several benefits that are easily evident to anyone, who participates in such a program. In essence, it is a strategy for repayment that helps you negotiate payment plans with your creditors to satisfy your debt obligations. Some of the benefits that debt relief provides are:
Quicker Payment of Debt
Debt relief programs will help you repay down your debt in a faster amount of time. Agencies that offer debt relief usually have relationships with creditors that allow them to structure plans whereby you quickly paying down your debt. They may offer you settlement amounts, which are lower than the actual that amount that you owe.
Helps You Avoid Bankruptcy
Many people choose debt relief programs so that they can avoid entering into bankruptcy. Bankruptcy is a type of financial relief that stays on your credit report for several years even after it is completed. Therefore, while it may help you in the short term by solving debt problems, bankruptcy can affect your credit when you try to apply for a loan or mortgage in the future. Additionally, some employers do not look favorably on employees, who have filed for bankruptcy. With debt relief, you will pay down your debt and not simply avoid them. This sets up a good track with your creditors. The best part is that your repayment strategy will not end up on your public credit report.
Resources for Debt Relief and Financial Responsibility
As a resident, you can find debt settlement in Memphis, TN resources to help you manage your debt and become financially responsible. Contact companies that specialize with debt consolidation and settlement.
No matter what kind of financial straits you find yourself in, debt relief is only a phone call away. It will require your dedicated attention to get through this process. It does not happen overnight. Be prepared to spend several months and possibly even years to eliminate your debt. You will find that this effort will be worth it in helping you start a life of financial freedom.