Dena Standley | October 19, 2022
Summary: If you're struggling with debt in West Virginia, SoloSuit can help you find the relief you need.
Many West Virginians have turned to credit card transfers in an attempt to to reduce the interest and the size of the payments on their debts. Zero-interest credit card transfers have become the most popular type of credit in the state. Transferring debt from one card to another isn't always a bad idea, but many consumers continue to use debt to get by, and as the debt grows their financial situation worsens.
Last year, the Build Back Better Act - Child Tax Credit (CTC) helped many needy families supplement their income. That changed in January 2022 when senator Joe Manchin withdrew his support for the Act. The over 50,000 children who relied on this fund risk sinking deeper into poverty. Their parents have to work multiple part-time jobs. And dependence on credit is once again rising.
If you're one of those struggling with too much debt and traditional ways of getting out of debt are not working, try one of these:
With determination, you can get out of debt sooner than you think.
Many entities claim to help with debt relief, but you should be careful who you work with. To protect you, the government keeps an updated list of banned credit relief providers and those that are approved in West Virginia.
When you choose to work with a credit counseling agency, be honest with them about your finances. After understanding your situation, they can help you:
Let's break these two methods down a little further.
It can be challenging for an average consumer like you to create a workable plan. Someone who has worked in finance can help. It's okay to accept their help if you need it. Debt counselors are qualified to look into your income, debt, recurring expenses, and more to create a workable budget. The goal of the budget is to get you out of debt.
Depending on how deep you are in debt, the counselor may suggest a tighter spending budget, "freezing" your credit cards, and not using other forms of credit for some time. If you stick with the suggestions, you will be out of debt within five years or less.
Your counselor speaks with your creditors to let them know they will be acting on your behalf. They negotiate lower monthly rates to lower the risk of default. Once the plan is in place, you need to make a monthly payment to the counseling organization. The counselor then discreetly divides that money among your accounts.
Your job is to keep up with the monthly payments while not taking on more credit. While you can arguably work out a debt repayment for yourself, working with a partner makes you accountable. Also, debt counselors are professionals; they are best placed to give financial advice and handle creditors.
It's not common for credit card providers to forgive whole debts. But they can consider forgiving part of the debt if your debt counselor pleads your case.
Many federally-approved debt counselors have agreements with lenders to help struggling consumers. So, if they feel that you qualify for debt forgiveness, they will ask on your behalf.
If they are successful, the creditor reduces the debt by a percentage, instantly reducing your debt. From then on, every payment you make reduces the amount.
Here's a comparison between debt management plans and forgiveness:
Debt Management vs. Forgiveness
Debt management plans
Reduces monthly payments
Instantly reduces the debt
Not using credit reduces the risk of more debt
You can get into more debt if you continue to use credit
Single monthly payments
You may still have several accounts
You may pay taxes on forgiven amount
When the situation is dire, creditors will understand. Banks, especially, know that the economy has taken a hit. They have benefited from government aid and may be more willing to discuss your options than you imagine.
You can request them to adjust your monthly payments to help you keep up. Making smaller minimum monthly payments will keep you in debt for longer. But it will take away the late fees, the risk of delinquency, and adverse reports on your credit.
Alternatively, you can offer a lump-sum settlement of a lower amount. You offer to pay off the account if the lender settles for less than the original amount. You may be able to negotiate a 40% or 50% settlement.
Just be aware that, if a lender forgives more than $600, the amount may be taxable. Settled accounts are also reported to the credit bureaus and will affect your credit score.
If the creditor sells the debt to a collector, you can negotiate an even lower settlement. By the time the creditor charges off your account, they have written it off as a loss and sold it for pennies on the dollar. The room to negotiate is wide. Most often than not, debt collectors accept less than the total amount.
Did you know you can settle a debt even after it goes to court? To learn more about how debt settlement works, check out this video:
More like filing for a divorce, bankruptcy has its pain, but it has its benefits too. Starting over may not be what you want to hear when seeking debt relief. So why would you even consider bankruptcy?
On the other hand, here's why consumers fear filing bankruptcy:
If you have tried other options and nothing is working, filing for bankruptcy can be your lifeline. Be sure to consider which chapter bankruptcy works best for you, whether a chapter 7 or a chapter 13.
Debt is stressful. However, if you can get into debt, you can get out of it. To succeed, think seriously about the direction you want your life to take. Ask for professional help from debt counselors, and never give up hope.
You can find more debt management resources on SoloSuit's blog.
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.
"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.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.