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How Debt Consolidation Loans Texas Can Help Reduce Your Debt

Most of us have debt, but if you don’t know how to deal with it and let it get out of control, you might have a problem on your hands. Statistics show that people living in Texas carry the third largest amount of debt in the country at an average of more than $185,000 per person![1] Due to the way they handle debt, they also have among the lowest credit scores in the country, at 659 or lower.[2] For those looking to improve their credit rankings, they can take advantage of debt consolidation loans in Texas.

What Are My Rights When it Comes to Debt Collection in Texas?

If you are heavily in debt and have debt collectors contacting you frequently, you should be aware of your rights. Just because you owe money, no matter how much it is, you still have rights under Texas law.

In Texas, debt collectors can’t garnish your wages or take away your home to pay off a debt.[3] If your home has been declared a homestead, it can’t be taken to pay a debt, except for debts taken for the purchase of the home, for home improvements, for home equity or to pay certain taxes.

Texas also has a four-year statute of limitations for collecting debts. That means debt collectors only have four years to collect a debt. This does not mean that they won’t continue to try to collect the debt after four years, it just means that they can’t take legal action if a debt is more than four years old.

Debt collectors are also prohibited from doing the following things when trying to collect payment:

  • Threaten violence or other criminal acts
  • Use profane or obscene language
  • Falsely accusing you of fraud or other crimes
  • Harassment
  • Call before 8 a.m. or after 9 p.m., unless the collector knows those times are more convenient

How Can I Get Out of Debt?

If debt collectors have you on speed dial, then it might be time to figure out a plan to get out of debt. Many people in Texas turn to debt consolidation programs and debt consolidation loans in Texas.

Debt consolidation programs and debt consolidation loans Texas allow you to combine qualifying debts into one monthly payment that you can afford, rather than the several that you’ve been avoiding.

Debt that is eligible for this type of program includes:

  • Credit card debt
  • Unsecured personal loans (no collateral tied to the loan – car, house, etc.)
  • Collections accounts
  • Medical bills
  • Other unsecured debts

If you have the following debt, it is not eligible for a debt consolidation program:

  • Mortgages
  • Car loans
  • IRS tax debts
  • Student & Payday loans

Debt consolidation loans Texas can help lower your interest rate and help you to avoid fees that only push you farther into debt.

UmbrellaDEBT Can Help

UmbrellaDEBT has helped tens of thousands of people work their way out of debt and get the financial freedom they deserve. Debt counselors will review your case and will try to advise you with the best course of action for your situation. Call today to start your path to the financial peace you deserve.

Sources:

[1] https://www.chron.com/news/houston-texas/texas/article/Texas-is-No-3-when-it-comes-to-highest-average-12299401.php

[2] https://www.cnbc.com/2019/05/21/americans-average-credit-score-in-every-state.html

[3] https://www.texasattorneygeneral.gov/consumer-protection/financial-and-insurance-scams/debt-collection-and-relief/your-debt-collection-rights

Umbrella Debt Relief 1-844-389-6745
200 W. Palmetto Park Road Suite 200 Boca Raton FL 33432