Start My Answer

How to Get Debt Relief in Vermont

George Simons | July 21, 2022

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:

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

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.

Respond with SoloSuit

"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


Get Started


We have answers.
Join our community of over 40,000 people.

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.


Ask a Question


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

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.



Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.


Win against credit card companies

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

Get answers to these FAQs

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?

SoloSuit FAQ

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 I Stop Wage Garnishment?

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?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

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?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

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

How to Liquidate Debt

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

How to Stop a Garnishment

Debt Eraser 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