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Debt Consolidation Utah: Your Complete Guide

Debt Consolidation Utah: Your Complete Guide

As the price of gas and food continues to rise throughout the nation, more families are struggling to make ends meet. Just being able to pay the energy bill or car payment is becoming more difficult each day. Economists have reported that these tough economic times will continue in the near future. Therefore it’s important to find creative ways of dealing with large amounts of debt. The debt consolidation Utah companies offer programs to consumers in an effort to negotiate with their creditors to lower monthly payments, interest rates and get late fees waived.

Knowing Which Program to Choose

Deciding whether to negotiate with creditors or take out a loan to pay them off is a difficult choice. When considering a debt consolidation Utah program, there are some things to consider:

  • Second Mortgage Loan—Utah homeowners can consolidate their credit card debts while earning tax incentives because mortgage interest is tax deductible. Consumers will have a lower interest rate and only have to make one monthly payment.
  • Debt Counseling—Some people may benefit from a debt counseling service that provides information about how to manage their finances more wisely and keep their future debts under control.
  • Personal Loans—There are some lenders who will lend a small amount of money on an unsecured basis. The consumer is not required to put up collateral and approval is based upon the borrower’s prior credit history.

There are many benefits to a debt consolidation Utah program and consumers can become debt free within a short amount of time.

Tactics Used By Collection Agencies

The Fair Debt Collection Practices Act (FDCPA) was passed by the United States Congress in response to the abusive conduct of collection agencies. Debt collectors must following a specific set of guidelines and if the violate federal law; they will be hit with penalties and fines. Collection agencies cannot do the following:

  • Call people at their home before 8 am or after 9 pm
  • Use threatening, abusive or obscene language
  • Talk to a third party about your debts, such as your neighbors or employer
  • Threaten to have the person arrested and put in jail
  • Lie to the consumer about what is actually owed on the account
  • Obtain personal information by pretending to be someone else, such as a person taking a survey

Anyone who believes that they have been the victim of harassment can file a complaint with the Federal Trade Commission (FTC).

Have Your Debts Expired?

While considering a debt consolidation Utah program, keep in mind that the law limits the amount of time a debt can be collected. This is known as the statute of limitations and the following are the laws in Utah:

  • Oral Agreements—Valid for a period of four years
  • Written Contracts—Valid for a period of six years
  • Promissory Note—Valid for a period of six years
  • Open Ended Account—Valid for a period of four years

Once the time limit has expired, the debt collector can no longer come after the consumer for payment.

Don’t Get Scammed By Dishonest Companies

There are many debt consolidation Utah services that will offer to stop the calls from debt collectors. Make sure they are a reputable firm by checking to see if they have any complaints against them. Start with the Better Business Bureau and find out if the company is accredited. Ask family members of friends if they have heard anything about the organization or if they have previously done business with them.

Photo courtesy of MoneyBlogNewz.

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