Does Texas Have a Debt Relief Program?

Debt can be a heavy burden for many Texans, especially as the average amount of debt increases among the population, and many individuals find themselves struggling with short-term loan debts. If you’re facing these financial difficulties, you might find yourself wondering, “Does Texas have a debt relief program?” No matter what your circumstances may be, it is vital to know there are plenty of options available to you that can help get you back on the right path.

Debt can feel overwhelming. No matter the amount of debt you carry, you should never feel shame for asking for help. A Fort Worth debt consolidation lawyer is here for you, ready to help you with the necessary debt relief and get you on the road to financial recovery. If you are a resident of the state of Texas and are feeling the weight of your debt burden, it’s time to know and explore your debt relief options.

Common Types of Debt Faced by Texans

Actions and threats from debt collection agencies can impact almost every part of your life. Carrying the burden of debt can prevent you from being able to provide your loved ones with even their basic needs, negatively affect your mental and physical health, and keep you from obtaining that home or car you are in need of.

Thankfully, for many Texas residents, there are debt relief options available. These options can offer help for various types of debt, including:

• Car Loan Debt: When you lose your vehicle due to repossession, it isn’t just a financial loss. It’s a setback that affects your ability to get yourself and your family to work, school, appointments, and so much more. In turn, not being able to get to work or having to rely on someone or something else for transportation means a loss of access to much-needed wages and having to pay extra for necessary transportation.
• Medical Debt: Going into medical debt is rarely a choice. If you or a member of your family suffers a chronic or life-changing illness or is involved in an accident, their medical needs and treatments must come first. Unfortunately, the debt can reach unimaginable heights when you can’t afford the bills that start flowing in after or during treatment. Your first move might be to put these debts on your credit card, which, in turn, will only cause you to go deeper into debt.
• Student Loan Debt: Most individuals are told that going into student loan debt is a great idea and a necessary investment in their future. The unfortunate truth is that the parties who lend the money are often the ones reaping the most benefits in these arrangements.
• Credit Card Debt: This kind of debt is the easiest to build and the most common. High interest rates and harsh penalties can stick you in a bad position where you end up paying much more than you ever had access to. If you can use credit cards wisely, they can be a good financial tool to have in your back pocket. However, they can also leech away your finances, leaving you in a worse position than you started in.

If you find yourself facing any of these types of debt, it’s time to look into the debt relief available to you. No matter how heavy or overwhelming your burden may feel, there may be ways to better your situation.

Debt Relief Options in Texas

Debt relief can come in various forms and programs that allow you to pay off or manage debt. These include the following:

• Debt Consolidation: This involves a process of taking out a new loan or other form of debt to pay off several already-existing debts at once. In most cases, the new debt will have a lower interest rate, which will help lower your monthly payment overall.
• Debt Settlement: Typically, a debt settlement allows an individual to pay off debts for a lesser amount, usually by paying a single lump sum. The difference between this and debt consolidation is that debt consolidation usually does not change how much you owe.
• Bankruptcy: There are two options when filing for bankruptcy as an individual. Chapter 7 bankruptcy occurs when a person’s assets are sold off, except for certain exempt ones, to pay off their debts. A Chapter 13 filing allows the debtor to keep more of their assets, but they have to promise to create and agree to a plan to pay off their debts in three to five years.

Ways to Spot Debt Relief Scams

There are two main ways of telling if a debt relief option is a scam. These companies find individuals dealing with debt and prey on them. Don’t fall for their predatory behavior. Unlike a debt consolidation lawyer, they do not want to help you.

The two signs of a debt relief scam are:

• They Make Contact First: An unsolicited phone call from someone who offers to help you eliminate all debt is often a sign to proceed with caution.
• They Require a Fee Upfront: If the debt relief company offers to help you get rid of your debt but requires you to pay them a fee before you receive their services, they’re most likely lying to you.

FAQs

What Is the Texas Debt Relief Program?

A: Texas residents have access to several programs that will help relieve some or all of their debt. This includes options such as a debt management program, seeking a debt consolidation loan, negotiating a debt settlement, or filing for bankruptcy. Texas also offers various resources for those struggling with financial hardships, like SNAP, WIC, and TANF.

What Happens to My Credit Score If I Seek Debt Relief?

A: Certain debt relief programs may negatively impact your credit score. In debt settlements, the process can be time-consuming. Additionally, a debt settlement can negatively affect your credit by a range of points. Unfortunately, the stronger your credit score, the more significantly it may be impacted. However, the damage to your credit score may be worth the other benefits of debt relief.

Are There Any Risks or Downsides to Seeking Debt Relief?

A: Unfortunately, there are some downsides to debt relief options. Bankruptcy goes through the courts and can end up being costly. It can also cause significant damage to your credit score. Debt settlements can also cause credit score damage. However, debt relief is the ideal solution for many people. While it may involve fees and affect your credit score, you may not have better options.

Is There a Credit Card Debt Forgiveness Program?

A: Yes, there is a credit card debt forgiveness program, but there are certain requirements one must meet in order to qualify. Unfortunately, just having many bills from various credit cards and struggling to stay on top of payments does not qualify you for the program. Your credit cards must be from companies that have agreed to participate in the program. Your account must also be charged off, meaning you haven’t made a payment in a specific amount of time, depending on the creditor.

Contact a Trusted Fort Worth Debt Consolidation Lawyer

If you’re struggling under the burden of excessive debt, it’s time to contact a trusted debt consolidation lawyer who can help you navigate the complex world of Texas debt relief. The team at Steele Law Firm, PLLC, is here to help you reach a healthy financial future. Remember, you don’t have to face these challenges alone.