If you find yourself having trouble managing your debts in Hawaii, the first step you should take is contact your creditors and ask for an alternative repayment plan that's convenient for you. Some creditors may agree to work with you, others won't. This is when you need to get professional help to pay your bills. There are several Hawaii debt consolidation/settlement companies willing to offer programs that will give you relief from debt so that you can relax and lead a stress-free life.
Hawaii debt consolidation program and its benefits
This is a program that helps you combine multiple bills into one debt at a low interest rate. You enroll with a consolidation company that negotiates with your creditors so that they cut interest rates charged on your credit cards, medical bills, etc. You make one low monthly payment to the Hawaii consolidation company that distributes it to your creditors. Check out the 6 steps of a consolidation program in detail.
The benefits of Hawaii consolidation program are:
- You make one convenient monthly payment instead of many.
- It's easy to track your monthly payments when you deal with one company.
- Your creditors will not take legal action because you're paying on the debt.
For further details, refer to the 8 benefits of consolidation.
Hawaii debt consolidation loan and its benefits
This is an unsecured personal loan you can use to pay off all your unsecured bills quickly and avoid filing bankruptcy. But you need to make sure that you get an interest rate that's lower than your current rates. Moreover, you should stop using your credit card (cc) bills and refrain from taking out new loans until you get your finances back in order.
Hawaii debt settlement programs - Pros and Cons
If you have high interest credit cards and you're having problems making the minimum payments, it's time you negotiate a settlement with your creditors. If you're skeptical whether you'll be able to work out a settlement on your own, try getting help from a Hawaii debt settlement company.
The representatives at the Hawaii debt settlement company will ask you to send your monthly payments to the company. Once you've saved up a certain amount of money, the Hawaii debt settlement company will attempt to negotiate with your creditors to accept a lower principal amount. Use the debt settlement calculator and get an estimate of how much your balance can be reduced.
What are the other ways to tackle debt in Hawaii?
Apart from Hawaii debt settlement or consolidation, you have other options such as credit counseling and debt management (DMP) which can help you manage your bills efficiently. Here's a brief idea of how each option works:
Credit counseling: This is where you contact a credit counselor and get help with budgeting and other tips to help you manage your bills on your own.
Debt management plan (DMP): If the counselor finds that you need more help, they may recommend a DMP. Under this plan, a counselor works out payment arrangements with your creditors. You make one monthly payment to the counselor who then distributes it amongst your creditors.
Which is the most suitable debt relief option?
Since your financial situation is unique, the option you choose to pay your bills on time should be one that fits your needs. So, what you need to do is calculate the total amount you owe and figure out the types of accounts you have. Then compare the ways to repay your bills and weigh the pros and cons of choosing Hawaii debt consolidation, settlement, or DMP. Only then you'll be able to understand which option will benefit you the most.
FAQ on Hawaii debt consolidation and settlement
Q) I live in Hawaii and have cc bills worth $120,000. I'm late on a number of payments on some of these cards. Can the credit card company take away my car?
Ans: The credit card companies will not be able to repossess your car unless you have paid off the loan you took out to buy the car and they get a judgment lien put on your car. If you choose to use the Federal exemptions in Hawaii, you will be able to keep any equity in your car up to $2,575. To avoid getting a judgment lien on your car, contact a Hawaii debt consolidation company or a Hawaii debt settlement company for a free consultation.
Q) I have 11 pdls and cannot keep up with the payments and fees. My husband isn't aware of these loans and wonders where my money goes. I'm having a tough time managing the household expenses. I've just applied for 3 more loans to tackle the situation. Please help!!
Ans: Taking out additional loans will not solve your problems. You should first check with Hawaii's Department of Commerce & Consumer Affairs Division of Financial Institutions to make sure any internet payday loans you have taken out are legal. If the lender is not licensed to do business in your state, you only owe the principal. However, if you find that the loans are legal, then you can consult a Hawaii consolidation company and let them negotiate lower interest rates with your creditors.
Q) 3 years ago I received a judgment on cc account and recently a lien was placed on my property. Is it legal for a cc company to place a lien on my home for unpaid cc accounts? Currently I have medical bills and 4 credit cards to be paid off and I don't think I can pay off the entire amount I owe. What should I do?
Ans: Any unsecured debtor can sue you for an unpaid debt, and if they win, they can get a judgment lien placed on your property. A Hawaii debt consolidation program or a Hawaii debt settlement program will not help you get rid of your judgment lien, but it will help you manage your other bills so you can pay off the lien and get it released.