Sarah Edwards | October 19, 2022
Summary: If you're struggling with debt in Hawaii, SoloSuit can help you find the relief you need.
If you're a resident of Hawaii, you're likely battling high property taxes, rental rates, expensive consumer goods, and consumer debt. Hawaii is currently the most expensive state to live in, with a cost index of 193.3.
Rising inflation and gas prices haven't helped matters, and ordinary citizens are feeling the pinch. Apartment rental rates are up 20% compared to last year, leaving many without adequate housing options.
In addition to soaring costs, the average Hawaiian earns an income of $59,760, which is only slightly above the national average of $58,260. Since the average household in Honolulu has $12,429 in credit card debt, it's no wonder people get caught on a hamster wheel of trying to afford their everyday expenses while battling consumer debt.
Fortunately, there are protections in place for Hawaii residents with consumer debt.
The FDCPA was first created to protect consumers from unscrupulous debt collection activities. There are a variety of prohibited activities that debt collectors may not engage in. A few examples include:
Other debt collection activities may be illegal as well, especially if they seem abusive or are made in an attempt to harass the consumer.
Each state has its own statute of limitations laws. These laws prevent debt collection agencies and other creditors from suing alleged debtors after a specific amount of time has passed. Statutes of limitations vary depending on the type of debt held. In Hawaii, the statute of limitations sets out the following time limits:
Hawaii Statute of Limitations |
|
Debt Type |
Deadline in Years |
Written |
6 |
Oral |
6 |
On Account |
6 |
Auto Loan |
4 |
Rent |
6 |
Judgments |
10 (court of record), 6 (court not of record) |
Source: Findlaw |
Once the time limit has passed, the creditor or debt collection agency can no longer pursue action against you in court to collect an overdue debt. However, this does not mean that you no longer owe the debt. The creditor may still contact you via phone or mail to try to collect money from you.
If you respond to their communications and confirm that you owe the debt or send any sort of payment, you reset the statute of limitations. This allows the creditor to open a lawsuit against you again.
If you're currently drowning in debt in Hawaii, you're likely seeking relief that can help you make a new start. There are various options you can consider, including debt consolidation loans, home equity loans, and debt settlement.
Taking out a debt consolidation loan can be a great option for those with decent credit. Generally, you must have a credit score above 650 to qualify for a debt consolidation loan.
If you qualify, you'll be given a sum of money that you can use to pay off all of your current lenders. In exchange, you'll make a single monthly payment to your debt consolidation lender until the loan is paid off.
Debt consolidation loans often carry lower interest rates than credit cards and other types of consumer loans. This can allow you to reduce the overall amount of interest you would pay to your original lenders and shorten the amount of time to pay off your debt.
For example, if you have five different credit cards with a balance of $5,000 each and an APR of 15%, you could obtain a debt consolidation loan for $25,000 with an interest rate of 6%.
If the minimum payments on your credit cards were $120 per month, $62.50 would have gone to interest, while the remaining $57.50 would have paid the outstanding balance.
Under your new debt consolidation loan, the $600 payment that you made towards credit cards would be applied to your loan, with only $125 paid for interest each month. The remaining $475 would reduce your overall balance. That's a savings of $187.50 in interest charges each month.
If you're a homeowner, you may be able to obtain a cash-out refinance loan. This allows you to withdraw a specific amount of equity from your house in order to pay off consumer debts. The terms of your mortgage will then be adjusted, and a new interest rate and time period to pay off your house will apply.
This method is similar to a debt consolidation loan, in that you'll pay off all of your creditors with one payment. However, rather than paying a creditor for a debt consolidation loan, you'll be paying back yourself. Interest rates may vary when using this method, so it's important to compare options before tapping into your home's equity.
Debt settlement involves negotiating with your lenders for a reduced overall balance owed. You may attempt to do this on your own, or you can work with a debt settlement agency that will manage the process for you.
If you decide to work with a debt settlement agency, you may be able to reduce the amounts you owe to your creditors by as much as 50%. However, the debt settlement agency will charge fees for their services. Typically these vary from 15% to 25% of the overall debt.
Debt settlement programs may last anywhere from 12 months to 48 months, depending on the settlement amount and how much you're able to pay monthly.
Hawaii has several programs to help its residents who are struggling with debt. Check out these services to see if you qualify:
If a creditor has recently filed legal action against you in an attempt to collect a debt, you need to take action.
The first step to winning a debt lawsuit in Hawaii is to respond to the Summons and Complaint by filing a written Answer. In your Answer, you should follow these three steps and file before the deadline:
Learn more about these three steps from SoloSuit's CEO, George Simons, in this informational video:
https://www.youtube.com/watch?v=TQAKQ0G2KhE
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.
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
Need more info on statutes of limitations? Read our 50-state guide.
Why do debt collectors block their phone numbers?
How long do debt collectors take to respond to debt validation letters?
What are the biggest debt collector companies in the US?
Is Zombie Debt Still a Problem in 2019?
If a car is repossessed, do I still owe the debt?
Is Portfolio Recovery Associates Legit?
Is There a Judgment Against Me Without my Knowledge?
Should I File Bankruptcy Before or After a Judgment?
What is a default judgment?— What do I do?
Summoned to Court for Medical Bills — What Do I Do?
What Happens If Someone Sues You and You Have No Money?
What Happens If You Never Answer Debt Collectors?
What Happens When a Debt Is Sold to a Collection Agency
What is a Stipulated Judgment?
What is the Deadline for a Defendants Answer to Avoid a Default Judgment?
Can a Judgement Creditor Take my Car?
Can I Settle a Debt After Being Served?
Can You Appeal a Default Judgement?
Do I Need a Debt Collection Defense Attorney?
Do I Need a Payday Loans Lawyer?
Do student loans go away after 7 years? — Student Loan Debt Guide
Am I Responsible for My Spouses Medical Debt?
Should I Marry Someone With Debt?
Can a Debt Collector Leave a Voicemail?
How Does Debt Assignment Work?
What Happens If a Defendant Does Not Pay a Judgment?
How Does Debt Assignment Work?
Can You Serve Someone with a Collections Lawsuit at Their Work?
How Many Times Can a Judgment be Renewed in Oklahoma?
Does Debt Consolidation Have Risks?
What Happens If You Avoid Getting Served Court Papers?
Does Student Debt Die With You?
Can Debt Collectors Call You at Work in Texas?
How Much Do You Have to Be in Debt to File for Chapter 7?
What Is the Statute of Limitations on Debt in Washington?
How Long Does a Judgment Last?
Can Private Disability Payments Be Garnished?
Can Debt Collectors Call From Local Numbers?
Does the Fair Credit Reporting Act Work in Florida?
The Truth: Should You Never Pay a Debt Collection Agency?
Should You Communicate with a Debt Collector in Writing or by Telephone?
What Happens After a Motion for Default Is Filed?
Can a Process Server Leave a Summons Taped to My Door?
Need help managing your finances? Check out these resources.
How to Make a Debt Validation Letter - The Ultimate Guide
How to Make a Motion to Compel Arbitration Without an Attorney
How to Stop Wage Garnishment — Everything You Need to Know
How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
Defending Yourself in Court Against a Debt Collector
Tips on you can to file an FDCPA lawsuit against a debt collection agency
Advice on how to answer a summons for debt collection.
Effective strategies for how to get back on track after a debt lawsuit
New Hampshire Statute of Limitations on Debt
Sample Cease and Desist Letter Against Debt Collectors
The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah
West Virginia Statute of Limitations on Debt
What debt collectors cannot do — FDCPA explained
Defending Yourself in Court Against Debt Collector
Arkansas Statute of Limitations on Debt
Youre Drowning in Debt — Heres How to Swim
Help! Im Being Sued by My Debt Collector
How to Make a Motion to Vacate Judgment
How to Answer Summons for Debt Collection in Vermont
North Dakota Statute of Limitations on Debt
ClearPoint Debt Management Review
Indiana Statute of Limitations on Debt
Oregon Eviction Laws - What They Say
CuraDebt Debt Settlement Review
How to Write a Re-Aging Debt Letter
How to Appear in Court by Phone
How to Use the Doctrine of Unclean Hands
Debt Consolidation in Eugene, Oregon
Summoned to Court for Medical Bills? What to Do Next
How to Make a Debt Settlement Agreement
Received a 3-Day Eviction Notice? Heres What to Do
How to Answer a Lawsuit for Debt Collection
Tips for Leaving the Country With Unpaid Credit Card Debt
Kansas Statute of Limitations on Debt Collection
How to File in Small Claims Court in Iowa
How to File a Civil Answer in Kings County Supreme Court
Roseland Associates Debt Consolidation Review
Do Debt Collectors Ever Give Up?
Can They Garnish Your Wages for Credit Card Debt?
How Often Do Credit Card Companies Sue for Non-Payment?
How Long Does a Judgement Last?
How Long Before a Creditor Can Garnish Wages?
How to Beat a Bill Collector in Court