How to Get Debt Relief in Vermont

George Simons | October 19, 2022

Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

SoloSuit is on its way to rescue you from debt

Summary: If you're struggling with debt in Vermont, SoloSuit can help you find the relief you need.

If you currently live in the beautiful State of Vermont and are struggling with monthly debt payments, you are not alone. Many Vermont residents are carrying fairly large debt loads in the form of credit card debt, mortgage debt, and especially student loan debt. Specifically, the average Vermont resident is paying down more than $38,000 in student loans which means Vermont has the seventh-highest average amount of student loan debt per resident in the U.S. in 2020.

If you are having a difficult time managing your monthly debt obligations and feel like there is no path forward, do not give up hope. Now is the time to take action and explore how to get debt relief in Vermont.

Explore these Vermont debt relief programs

Vermont residents who are struggling to find employment or housing or to pay their bills could be eligible for financial assistance through state or federal programs. Here are some services that are available:

Vermont Homeownership Assistance: This is a federal program what works with state and regional authorities like the Vermont Housing Finance Agency and Habitat for Humanity to help people buy a home.
Homeownership Preservation Foundation: This program is available to residents struggling with making timely payments on their mortgage. The Foundation offers a team of knowledgeable counselors who work with you to develop a tailored plan to ease your debt load.
Vermont Lifeline:- This program provides discounted phone services for low-income families and individuals.
Assistance with Utility Bills:- There are numerous programs exclusively available to low income Vermont residents to help pay their heating and utility expenses.
Private Student Loan Relief: Provides a network of financial counselors who link troubled families with trustworthy agencies for financial assistance with private student loans.

Assess the viability of applying for a debt consolidation loan

If you qualify, a debt consolidation loan can be an effective way to help manage and pay down your debt. A debt consolidation loan enables you to combine your debt from different creditors so you only have to worry about making one payment toward one loan. For many people, this is preferred over paying multiple creditors each charging separate fees and interest rates on revolving balances.

In addition to simplifying your debt, a consolidation loan could save you money on interest and late charges. For example, if you are carrying balances on multiple high-interest credit cards charging well over 20 percent, you may be eligible to secure a consolidation loan with a relatively lower interest rate. Generally, the interest rate for a consolidation loan will range between 10 percent and 18 percent, but the interest rate will ultimately depend on your credit score and overall financial outlook.

If you can obtain a loan with a reduced interest rate, it will mean significant savings in the amount you are required to pay to service the debt. It also usually means a much lower monthly payment.

However, there are potential pitfalls associated with a debt consolidation loan. For example, a consolidation loan is only effective if you are able to get a grip on your spending habits. The most common reason that debt consolidation fails is that the person continues to use credit after the consolidation loan is taken out and then accrues additional debt. Once that happens, you are then carrying a large consolidation loan and new revolving balances on your credit cards. This is why, if overspending is a contributing factor to your debt struggles, then a change in spending habits is necessary to successfully achieve debt relief.

Work with a credit counselor to learn about debt paydown strategies

Working with a reputable credit counselor can help you learn about different debt paydown strategies and offer guidance on how to create a monthly budget, sticking to that budget, and not overspending each month. When you meet with a credit counselor, they will examine your monthly income, expenses, and debt. The credit counselor will then work with you to develop both short-term and long-term financial goals. Then, in collaboration with the credit counselor, you will work to develop a personalized action plan to achieve those objectives. Your credit counselor may also refer you to additional services, like creating a debt management plan or budget counseling.

Assess the pros and cons of hiring a debt settlement company

In addition to working with a debt management credit counselor, another option to consider is working with a debt settlement company. The pros of working with a debt settlement company is that they will negotiate on your behalf with your creditors with the goal of reducing your overall debt load and getting your creditors to agree to a reduced sum on the amount owed. Depending on the debt settlement company you hire, this strategy can be effective and result in you only being on the hook for a portion of your debt (typically between 50%-80%).

The drawbacks of working with a debt settlement company are numerous. First, the methods and tactics used by debt settlement companies can be considered somewhat risky and may harm your long-term financial future. For example, they will tell you to stop paying your creditors and any debt collectors while the company negotiates on your behalf. Another con is that debt settlement companies do not work for free so you need to be prepared to cover the service fee for the work done on your behalf by the settlement company. There are some companies that charge a flat fee while others charge a percentage fee, which can reduce your savings.

That being said, even after paying the fee to a debt settlement company, there's a great chance you will still end up saving after the settlement.

Another con to using a debt settlement company is the hit you may take to your credit score. Because debt settlement companies typically do not pay creditors during their negotiation process, your accounts will likely go into default, and you may receive calls from aggressive and disrespectful debt collectors.

Vermont debt collection laws can protect you

Along with the Fair Debt Collection Practices Act (FDCPA), which protects consumers like you from abusive debt collectors, Vermont state laws can keep you safe from unfair debt collection tactics.

The Vermont statute of limitations set a deadline for debt collectors to sue someone over an old debt. In other words, if the statute of limitations on a debt has passed, you cannot be taken to court over it.

Before you pay a debt collector anything, which resets the clock on the statute of limitations, you should check the statute of limitations on different types of debt in Vermont:

Vermont Statute of Limitations on Debt
Debt Type	Deadline in Years
Credit Card	6
Medical	6
Auto Loan	4
State Tax	6
Mortgage	14
Written	8
Oral	6
Judgment	10
Source: Findlaw

You can find the debt relief you need in Vermont

If you reside in Vermont and are struggling with a significant amount of debt (whether that be credit card debt, student loan debt, medical debt, etc.), do not throw your hands up in despair and embrace a life where you are perpetually dragged down by debt service payments. There are options available to show you how to get debt relief in Vermont. Those options usually include:

Applying for one of the programs available exclusively to residents of Vermont.
Consolidating your debts through a debt consolidation loan.
Working with a credit counselor to pay off your debts.
Negotiating a settlement of your debts with the assistance of a debt settlement company.
Knowing your rights under federal and state laws

If you are sued for debt, the first step to winning is responding in court. You can use SoloSuit's Answer form to respond to your debt lawsuit and win today.

Check out this video to learn more about how to respond to a debt collection lawsuit:

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You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

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"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

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>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate