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Debt Consolidation Loans in Texas: Best Credit Card Relief Programs & Settlement Help Companies

With a population of 25.1 million people, Texas ranks as the second largest state in the US after California. In the last couple of years, the state of Texas has been experiencing favorable economic conditions thanks to the vibrancy of its technology and energy industries. Although the state’s unemployment rate remains lower than the national average, Texas still ranks among the states with the highest demographic living under the federal poverty threshold. This obscure economic situation is attributable to the state’s large population.

Due to the low unemployment rate, the number of people actively looking for jobs is relatively higher. As a result, a large percentage of this population (especially the unskilled and semiskilled) will accept low paying jobs which leads to the plummeting of the state's average income. Amidst this strange economic situation, there’s a large part of low-income Texan populace stuck with mountains of credit card debts and medical bills they can’t sustain.

If you’re from Texas and happen to find yourself in such a situation, make an effort to get your financial situation in order. You could try debt management options such as debt consolidation. It could take a while, depending on how deep your financial woes run but with the right amount of discipline and hard work, you’ll get there.

What Is Debt Consolidation?

Debt Consolidation Loans in TexasDebt consolidation refers to the act of pooling all your existing unsecured debts together and paying them off as one. You will get one loan enough to pay off your creditors all at once and get rid of your debt. You will remain with a single more manageable loan that you can pay off via affordable monthly payments at a fixed interest rate. The debt consolidation company will negotiate for a reduced interest rate with the creditor on your behalf. A debt consolidation loan can be secured (with collateral) or non-secured (without collateral). Getting a debt consolidation loan before you start defaulting on your prior debts can save your credit score.

Who Is The Ideal Participant Of A Debt Consolidation Program?

Debt consolidation is a good option if you are going through a rough patch financially and can’t keep up with your credit card debt. Prime candidates for these programs are low-income earners carrying overwhelming amounts of unsecured debts and medical bills. Technically, anyone with a paying job and can’t sustain his/her debt can participate in a debt consolidation program.

Debt Relief Laws/Regulations in Texas

The Fair Debt Collection Practices Act (FDCPA), the Texas Administrative Code (OCCCS) and the Texas Finance Code: Debtor Assistance jointly constitute the set of rules and regulations that govern debt collection and debt management practices in Texas. Some of these regulations laid out in the FDCPA include:

  • The statute of limitations- in Texas, the statute of limitation ends exactly one year after the date of defaulting. If the statute limitation is up, the debt is no longer recoverable and will not appear on your credit report.
  • Violating the payment is categorized as a misdemeanor. The punishment is a fine ranging from 100-500$ for each violation.
  • Unless it’s clearly stated in the original contract, a creditor cannot ask for a collection fee from the debtor.
  • The creditors must strictly adhere to all regulations indicated in the Fair Debt Collection Practices Act (FDCPA).

Advantages of Debt Consolidation in Texas

  • You get a lower interest rate in your monthly payment when you adopt a debt consolidation program.
  • A debt consolidation loan can help you maintain or even improve your credit score if taken on time.
  • Debt consolidation makes your loans more manageable because you only have to make one single payment every month.
  • Your loan consolidation company gets you a reduced interest rate on the debt consolidation loan.
  • You get to avoid constant harassment calls from your creditors for being late on your payments.
  • A debt consolidation program will help you regain control of your finances.

Many low and middle-income earners are finding themselves struggling with massive amounts of consumer debts in Texas and are in need of a get out of debt plan. The increasing gap between the haves and the have-nots as well as the boiling multifaceted socioeconomic challenges have largely contributed towards this predicament. As a result, many people are adopting the debt consolidation approach to get rid of unsustainable debts. When choosing a debt consolidation company, be wary of firms offering guaranteed-to-qualify loans, easy credit, and extremely low-interest loans especially if you have a low credit score. You can check with Better Business Bureau to confirm the legitimacy of the debt relief companies credentials and services.