Dena Standley | October 19, 2022
Summary: If you're struggling with debt in Delaware, SoloSuit can help you find the relief you need.
Unsecured loans can quickly change from being your way out of a bind into a nightmare. Even the most financially conscious person can have unmanageable debt because of one financial hiccup. The extraordinarily high-interest rates on most payday loans add to debt woes for many who fall into the trap of needing these quick loans.
If you live in Delaware and find yourself in too many unsecured debts, you are not alone. Statistics show that the average Delawarean cardholder has a credit card debt of $6,736 as of early 2022. And with increasing inflation, high energy costs, and growing global instability, more and more people rely on credit cards.
If you feel overwhelmed with credit cards or other unsecured loans, you have a few options as a resident of Delaware:
Let's find out.
Delaware has one of the most lenient laws governing payday loans. While some states have a maximum payday loan of $500, you can get up to $1000 in Delaware.
A payday loan is a quick loan you borrow and have to pay on your next payday. These loans don't come cheap. Delaware doesn't limit the interest a lender can charge on these loans. The lender decides what to charge you. 300% APR is considered a competitive rate. And it can go as high as 500%.
So if you are considering a payday loan to get you out of a fix, best read between the lines before you agree to it.
Payday loans are best to use when settling small debts. For example, if you suddenly found yourself unemployed but recently got a job, you can borrow the money to help you keep your repayments up to date until you get paid. It's advisable only to use payday loans if you know you can pay the high interest. Otherwise, you may quickly regret the decision as it will get you deeper into debt.
This table summarizes the terms for payday loans in Delaware.
Delaware Payday Loan Terms
59 days or fewer
No regulation, but the lender must expressly spell the terms in the agreement
For more laws on payday loans in Delaware, visit the official website.
You settle a debt by working out a repayment plan with your creditor. Most creditors prefer a lump-sum offer to settle because this reduces the chances of future defaults. You have two options:
Working out a self-guided debt settlement can be tough, but it can be your only way out. Creditors are in business for money, and if you are offering them something, they may prefer to take it rather than risk getting nothing at all.
However, using debt settlement companies has its challenges. For one, you pay fees for the services when money is your problem in the first place. Also, the agency will delay payments on all your accounts for at least two months until they have a substantial amount in the new savings account to offer the creditors. All your accounts are delinquent as you wait, and your credit is destroyed. You may also start getting debt collection calls and threats of lawsuits.
Some debt settlement companies may require a large debt to work with you. Some only start taking clients with as high as $7500 in debt.
Whether you go with a debt settlement agency or choose to settle the debt yourself, remember that if you succeed and the creditor forgives more than $600, the IRS considers this amount taxable income.
Check out SoloSuit's video on debt settlement to learn more about settlement process
Debt consolidation is taking out one larger loan to pay off your current debts so that you are left with one account instead of several. It's great because it helps you get organized. Now you have just one instead of multiple due dates and different interest rates to keep up with. It gives you a sense of relief, but there's more to consolidating debt than meets the eye.
Debt consolidation promises you that you can borrow enough money to get out of debt. That doesn't sound right. However, if you are desperate, the promise may lure you into borrowing to pay the debt. In reality, you're still in debt.
When consolidating debt can work for you:
A refinance is a new loan you borrow to pay the old one. It's like loan consolidation, except you can only refinance auto or home loans. If you are drowning in debt, a refinance may work for you as you sort out your financial house. You can free up some money to settle your other debts.
There's almost nothing good to say about bankruptcy. However, Delaware has some of the best terms for chapter 7 bankruptcy. You can keep your home if you have $125,000 or less in equity.
As the last of your last resorts, apply for bankruptcy if you really can't pay off your debts. If anything, it will give you a clean slate. Your debts will drop off, and you can start building your credit afresh. You may lose some of your property and find it hard to access credit, but it can be worth it for the peace of mind of not dealing with debt collectors and debt-collection lawsuits.
Applying for bankruptcy is daunting, but you can find help to deal with the process here:
Delaware also has free community help for those struggling with debt.
Struggling with debt is not in the slightest way easy. If you evaluate your situation, you can find a way to get back control of your finances and build your credit score one step at a time. If you've been sued for debt in Delaware, Solosuit can help you respond to the debt lawsuit and win in court. Check out SoloSuit's services today to learn more about your options.
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.
>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Going to Court for Credit Card Debt — Key Tips
How to Negotiate Credit Card Debts
How to Settle a Credit Card Debt Lawsuit — Ultimate Guide
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