Credit Card Debt Relief in Alabama

August 12, 2019 Jonathan Gavalas

 

Credits Cards Consolidation

Alabamans’ average credit card debt is $4817. It has decreased down by 13% from the second quarter of 2009 when it was $5, 165. The statute of limitations in Alabama is 3 year on a credit card.

This means that debt collectors won’t sue you until 3 years after you go into default. 

Interest rate is really an important factor to consider when applying for a credit card. Not all cards are the same. They all come with different interest rates, penalties if you pay your card late, special offers and advantageous terms. 

It is worth noting that a credit card debt that comes with high interest rates can make that debt get out of control quickly

Interest rates vary from 12% to 25%. Always choose a lower rate. Also, it is better to pay your card’s balances every month to avoid penalties etc. that will accumulate your credit card debt. 

Credit card Debt Relief in Alabama

It is crucial that you study the forms that are given when applying for your credit card. Some credit companies requires you to pay annual fees while others will just charge an application fee. 

Some credit companies will fine you if you pay your bill late or impose a credit limit increase fee if you obtain a higher credit limit.  Avoid too many fees.

Special Offers

Choose a credit card that comes with rewards and special offers. You can earn cash back with these offers which can be credited to your account. Rewards include points for every purchase you make with them, airline miles, just to name a few.

You can redeem these points by cashing them or making purchases. Airline miles can be turned into free flights. Do not overspend in order to take advantage of more rewards.  

Alabama Credit Card Debt Relief Options

Alabama is a beautiful southern state where residents and visitors like staying. Despite having an exceptional climate and gorgeous scenery, there are many people who are struggling with credit card debts. 

Those with low incomes and high debt balances can be in a challenging financial situation. 

It can be very stressing to be threatened by debt collectors. Some of them may sue you or put you in jeopardy of losing your job by their constant calls at work. 

If you are looking for debt relief options in Alabama, you can consider a debt professional, debt relief program, just to name a few. Debt professionals can offer free consultation to anyone looking for debt settlement options.

They will help you get out of your debt by negotiating with creditors to reduce what you owe them. The effectiveness of these debt relief options will depend on your income and the assets that you have. 

Another effective debt relief option is debt consolidation. This involves consolidating your credit card debt through a debt consolidation loan. A company that does debt consolidation may simply loan you money to pay your credit card debt. 

Debt Consolidation in Alabama

Alabama consolidation companies can help you pay off your bills comfortably without defaulting. They will first offer free advice based on your finances and your debt. 

They mainly have 2 types of debt consolidation loans. They include loans secured by equity in your home and unsecured ones.

All loans will replace all past debts and bills. This means that all your creditors will be paid and you will just owe your consolidation company. They will offer a quick fix solution by replacing multiple debts with one new loan.

Your rights when dealing with debt collectors

If you are in a financial crisis, there are debts that you should give first priority over others. Use your money to pay what is crucial for your family. This include food, gas,  electricity bill, and clothing.

There is very little a debt collector can do to you so never allow debt collectors affect your decisions. 

-Pay your rent or mortgage first

-Pay your student loan first if you have one

-Give low priority to paying loans that are not tied to property 

Debt Collection laws in Alabama

Under the Fair Debt Collections Practices Act, debt collectors should have a license that allows them to collect debts from consumers. The statute of limitations in Alabama for open accounts is 3 years. 

Once 3 years have expired without a credit card holder making a payment, the collection agency can file a legal case.

A credit card can provide you with financial freedom in case you do not have cash handy. However, if you are not careful, it can burden you with heaps of debts.

In Alabama, a person cannot obtain a credit card until they are 19. Choose the right credit card company to avoid high interest rates, harsh penalties and take advantage of special offers that comes with some cards.