Florida Debt Relief

Posted on November 16, 2021 in Debt

When our debt becomes so much that we are unable to manage it and become unable to make payments, it can be a problem. There are no overnight answers for solving your debt problem, but options are available to you as you work towards a debt free life. This article contains a detailed list of options for Florida debt relief.

What is Florida Debt Relief?

Florida debt relief is a solution for Florida residents who are in debt and need a way out. Florida debt relief offers counseling and debt management programs to any Florida resident who considers themselves in debt.

Signs That You May Have a Debt Problem

Excessive debt doesn’t just creep up overnight. There are usually signs along the way that let us know we’re headed for financial distress. Here are some warning signs that you may be headed for a debt problem:

  • Constant calls from collection agencies or creditors about your account(s)
  • Working excessively just to pay your bills
  • Habitually dipping into your savings account to cover daily expenses
  • Repeatedly being denied when you apply for credit

Types of Florida Debt Relief Solutions

Living with debt in Florida can be stressful. But Floridians have options when it comes to dealing with their debt problem. The average household in Florida has a debt of about $8,500, that’s the seventh-highest state average in the country. With a median state income of about $55,000 (the 14th lowest in the U.S.), you’re in good company if you find yourself needing to find a way out of debt. Florida has debt relief solutions for many financial situations.

Credit Counseling

Credit and debt counseling agencies in Florida have certified and trained counselors who work with you to help you solve your financial problems. They advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. After discussing and evaluating your financial situation, credit counseling agencies can help you develop a personalized plan to solve your financial problems. When selecting a credit counseling agency to achieve debt relief in Florida:

  • Look for an agency that offers a range of services, like budget counseling, and savings and debt management classes.
  • Avoid agencies that charge for the information.
  • Ensure the counselors are certified.
  • Ensure that your personal information will remain confidential and secure.

Debt Management Plans

Sometimes, while seeking Florida debt relief, credit counseling agencies refer you to enroll in a debt management plan. A Florida debt management plan can help eliminate credit card debt without taking out a loan. A debt management plan is a carefully constructed payment schedule that consolidates unsecured debt into an affordable payment. That includes debt like credit card bills, student loans, and medical bills. Creditors may agree to lower your interest rates and waive certain fees to help in getting the payments lower. These payments are made to the credit counseling agency, which will be responsible for paying off all creditors.

Once enrolled in a debt management plan, you may need to cut up your credit cards to not use them, you may also need to agree to not apply for credit in the immediate future. It may take two or more years to pay off all debt, and the payments must be consistent.

Before enrolling in a Florida debt management plan, note the following:

  • Don’t sign up for a debt management plan if you can’t afford the monthly payment.
  • Sign up for one that allows all of your creditors to be paid before your payment due dates and within the correct billing cycle.
  • Ensure the agency you sign up with establishes an escrow account for your money.
  • Contact your creditors to verify they will lower or eliminate interest and finance charges or waive late fees.
  • Learn which debts will not be included in the debt management plan because you’ll have to pay those bills on your own.

Debt Settlement

Florida debt settlement is the process of building up savings on your own, or with a debt settlement company, with the expectation to negotiate a debt settlement with your creditors. Saving the money will allow you to be able to pay a lump sum to creditors for less than what the debt actually is. This is a great way how to settle credit card debt that has been piling up.

However, there are some drawbacks to this type of debt negotiation. One, the creditors do not have to negotiate with you or a debt settlement company, and the other is as you are not paying those bills and trying to negotiate, the interest is still building up along with the monthly payment, and will steadily diminish your credit score.

Unless you’re able to cover a large chunk of your debt right away and enter into a debt settlement program in Florida, this may not be a good option for you.

Debt Consolidation Loan

With a debt consolidation loan, you take a loan out yourself to pay off all your credit card debt. Your debt will then be consolidated into one loan and one easy monthly payment. Debt consolidation programs in Florida like this are a good option if you’re able to get a good interest rate on a new loan.

Hard Money Debt Consolidation Loans

A hard money loan is an alternative financing strategy that is secured by a real estate property. That means a borrower can receive funds secured by way of real property. Hard money loans are non-traditional short-term loans by private groups or an individual lender and are beneficial when you need to get money quickly for debt. Hard money loans are short-term loans that are paid back anywhere from six months to three years.

While your credit is likely an issue because of your debt situation, lenders of hard money loans are more concerned with property value instead of your credit history. While this type of loan is non-traditional, there are some benefits to hard money loans for debt relief in Florida:

  • Hard money loans are approved in much less time than the traditional bank, from days to a couple of weeks.
  • Banks usually require a mountain of paperwork, but with hard money loans, this is not the case.
  • With hard money loans, there’s no issue with your credit score since they are most concerned with the property value.

Credit Card Balance Transfer

Credit cards with a balance transfer option are a good way to eliminate your debt. It works by paying off credit card balances with another credit card, generally for a longer loan period or cheaper interest rate. That can help you to pay off your debt faster if utilized correctly.

Credit Repair Services

Some companies offer credit repair services as part of qualified debt management or credit counseling in Florida. When working together with a credit counselor, these services are designed to help you increase your base credit score and possibly identify inaccuracies in your credit report. They also assist with correcting those inaccuracies and help reduce your debt to credit ratio.

Hardship Program

Florida debt relief through hardship programs can be beneficial if you make regular payments to avoid interest. Hardship programs allow you to pay less than the whole amount owed for six months or longer. During this period, you must continue making minimum monthly payments without incurring any penalties. After this, there will be two years of lower deductibles based on the amount previously repaid.

Bankruptcy

Sometimes bankruptcy is a viable option for eliminating Florida resident debt. There are two types of bankruptcy: Chapter 7 and Chapter 13.

Chapter 7

Chapter 7 bankruptcy is known as liquidation bankruptcy. It eliminates debt by the selling off of non-essential material possessions. The money is then split between your creditors. Even if you don’t sell enough to pay off all of your debt, your debts are forgiven and wiped clean, and you can start from scratch. That stays on your credit report for 10 years.

Not everyone qualifies to file a Chapter 7. A means test is a test that has to be taken to determine whether or not you qualify for the Chapter 7 bankruptcy. If your income is below the median income in your state, you qualify. There are also other stipulations that have to be met before filing. Debt covered includes medical bills, credit card bills, utility bills, personal loans, and some government bills.

Chapter 13

Chapter 13 bankruptcy is an arrangement to pay some or all debt you owe over a specified period. The payback period could be up to 5 years. The most common debt discharged in a Chapter 13 filing is medical bills, credit card debt and personal loans.

Once the court approves your Chapter 13 filing, creditors are forbidden to continue collection efforts. Your payments are administered by a trustee and it stays on your credit for seven years.

Who Qualifies for Debt Relief Programs in Florida?

Debt relief programs in Florida are for people facing financial hardship. That means if you’re often late paying your bills, have little or no ability to pay your debt in the future, or are facing possible bankruptcy, you qualify.

Is There a Statute of Limitations on Debt in Florida?

In Florida, the statute of limitations for debt is usually five years. This means that a creditor has five years from the date you owe them money to file a lawsuit against you.

Is Florida Debt Relief Legitimate?

Florida Debt Relief offers legitimate programs. However, it’s up to you to do your due diligence to determine the best course of action for your debt situation.

Is There Really a Florida Debt Relief Program For Me?

There’s no one Florida debt relief solution, nor is there one solution that’s best for everyone. There is a debt relief program for you. You have to evaluate your unique situation against the debt relief options that are available to you and decide how to move forward. In some instances, there may be a mix of solutions that would work best for your circumstance. Find debt relief in your state today.

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