If you are a Pennsylvania resident who is struggling with credit card payments, then you have programs available that can help. Credit card debt is often hard to eliminate due to high interest charges, but it does not mean that consumers have no options available. Pennsylvania PA residents do have options available to get out of credit card debt.
Statute of Limitations and Wage Garnishment Considerations:
Pennsylvania has clear laws when it comes to the possibility of facing wage garnishment and understanding the statue of limitation on credit card debt. Understanding the laws is the first step in getting out of the negative situation.
The statute of limitations in Pennsylvania for credit cards and any other open accounts is six years. This means that if you have not paid on your credit card for six years, then your creditor is no longer legally able to pursue the debt. Unfortunately, the time period from the first default to six years provides plenty of time for collection calls, letters and similar action that can lead to stress.
The good news for PA residents is that the state does not typically allow wage garnishment. When the debt in question is credit cards, the creditor is not legally allowed to pursue a wage garnishment of anyone who lives and works in PA.
Those who have moved to Pennsylvania after wage garnishment judgments occurred elsewhere are not always protected by the law. Individuals who are facing previous wage garnishment will need to talk to a lawyer to find out the options available for the situation.
Consolidation Loans:
As a resident, it is possible to pursue consolidation loans through private lenders, social lending or similar venues. The problem is that, in most situations, the loans are simply too expensive to actually make a difference in the situation.
As someone who is struggling with credit card debts, you have likely paid late or missed payments on your debts previously. You also might find that credit card interest rates are as high as 20 percent or more.
The problem with taking out a consolidation loan is that, in most situations, it will end up denied by traditional lenders. When this happens, you might considered social lending. Unfortunately, in social lending you can expect to see high interest rates due to the current situation.
As a general rule, you will need a credit score of 700 or greater to get a consolidation loan that is worth obtaining. If you fall into the average or below category, then you can expect to see interest rates that range from 20 percent to 35 percent in social lending situations. Most traditional lenders will deny the funds if credit scores are not excellent. Obviously, an interest rate of 20 percent or more will not help when you already have credit cards with interest of 20 percent.
Negotiation Services:
While consolidation loans are usually not the best debt relief option, Pennsylvania residents do have credit card relief programs available that will help. The credit card relief programs work through negotiation services and have helped over 100,000 people with their situation.
Negotiation often starts with consolidation programs. Instead of taking out a high interest loan that does not lower the interest rate, you will work with professional negotiators who talk to the creditors and ask for a lower interest rate. This helps reduce the expense so that you do not need to pay high monthly fees.
Consolidation through negotiation strives to lower interest rates without taking new loans. This not only helps improve the situation by making payments affordable, but it also avoids the major credit risks of taking out a new loan. Taking a new loan will usually backfire when trying to eliminate credit card debts since it does not address spending habits or budgeting.
Working with a credit card relief service will also help by working out a budget so that you are able to make the monthly payments to the program. Counselors consider the situation and issue workable advice based on your personal needs and goals.
In some situations, counselors might suggest settling the accounts. Settlement is another negotiation service offered through credit card relief programs. The settlement process requires saving up a lump sum of cash while negotiations and bargaining is taking place.
After the lump sum is saved and the creditor agrees to the amount, you pay the lump sum of cash at one time. The creditor will consider the account paid and you no longer need to worry about that credit card. In some situations, settlement will save as much as 50 to 60 percent or more of the existing debt.
Procrastinating on finding the right service will only cost you money. You can save money with negotiation programs that consolidate and settle your accounts. Call us today or fill out the form to find a relief program that will help your financial situation in Pennsylvania and all over the rest of the United States.