Debt Settlement in North Carolina
Statistics & Laws on North Carolina Debt
The unemployment rate in North Carolina was above average at nearly 7% in 2016. North Carolinians carry an average credit score under 680, which puts them in the “average” or “good” range. They also carry an average credit card debt of $6,500 which is 25% greater than the national average of $5,200.
Consumers in North Carolina enjoy protections from the FDCPA such as:
- Debt collection agencies cannot contact a debtor’s place of work via mail or telephone unless a significant effort has been made to contact the debtor at their home and no contact was made.
- Collection agencies in North Carolina can charge no more than 6% in interest rates.
- 100% wage protection is offered to North Carolinians for a period of 60 days.
Statute of Limitations
The North Carolina statute of limitations set the amount of time that a creditor has to legally pursue collection of an unpaid debt. This limit is different for each type of debt and includes:
- Open Credit Card Accounts: 3 Years
- Oral Agreements: 3 Years
- Written Contracts: 3 Years
- Promissory Notes: 5 Years
How Does Debt Settlement Work?
The process of debt settlement works by negotiating a payment for less than the balance owed (principal) on your unsecured personal debt accounts in North Carolina. Different from Debt Consolidation and Credit Counseling which only affect the interest rate, settlement can reduce the balance owed and improve the interest rates.
Because it can potentially cut huge chunks off of the principal balance, Debt Settlement can be one of the quickest means of handling your debt in North Carolina. Most creditors in the state are willing to accept settlement offers of much less than the full balance owed as this is a better alternative than losing the entire amount when a debtor files for bankruptcy.
Our team of experienced debt negotiators at New Era Debt Solutions have been able to land great settlement offers for our clients in North Carolina for over 20 years. In our experiences, the most successful clients of debt settlement in Charlotte, Raleigh, Greensboro, Winston-Salem, Durham, and other North Carolina cities were the ones who were willing to take immediate action to clear their debt.
North Carolina Debt Settlement Programs can include unsecured debts such as:
- Credit cards
- Department store cards
- Signature loans
- Personal lines of credit
- Old repossessions
- Other unsecured debts
- Old judgments
- Private student loans in default
The following types of debt do not qualify:
- Home mortgages
- Federal student loans
- Car loans
- Other secured debts
- Credit Union debts
- Medical / Hospital bills
This list is of debts is not exhaustive. Please check with your North Carolina debt counselor for information.
North Carolina Debt Settlement By City
- Charlotte Debt Settlement
- Raleigh Debt Settlement
- Greensboro Debt Settlement
- Durham Debt Settlement
- Winston-Salem Debt Settlement
- Fayetteville Debt Settlement
- Cary Debt Settlement
- Wilmington Debt Settlement
- High Point Debt Settlement
- Concord Debt Settlement
Alternative Options for Debt Relief in North Carolina
Here is a brief description of each of those five debt relief methods.
1. Continue making minimum monthly payments.
Making only the minimum monthly payments can turn paying off a simple debt into an endless nightmare. It may feel affordable to take this route to financial freedom, but this may just be the worst strategy of debt relief one can utilize. Many debtors end up paying more in interest than they do in actual principal when they employ this type of plan for repayment of a debt.
2. Credit Counseling or Debt Management.
Debt management programs are a form of credit counseling in which a single, lower-interest monthly payment is made to a counseling agency. The funds are then distributed amongst your unsecured debts on your behalf. You still end up paying back 100% of your principal debt balance plus any interest that has accrued, but often at a lower cost in interest because the rate is lower. Credit counseling programs are designed to take between 3-5 years to complete and have low fulfillment rates in North Carolina despite the fact that they are mostly offered for free.
3. Debt Consolidation.
Debt Consolidation involves taking on a larger loan with a low-interest rate and using that capital to pay off your higher-interest, unsecured loans. This leaves you making a single monthly payment that is, theoretically, lower than the monthly payment that had to be made for all of your credit cards and other unsecured loans.
4. Debt Settlement or Debt Negotiation in North Carolina.
Debt settlement differs from the first two options in that the actual principal balance you owe is negotiated downward. Because you end up owing less, debt settlement is generally a faster and less expensive debt relief option than either debt counseling or debt consolidation. Lower interest rates are also a primary goal of a settlement program.
For the individual who continually has trouble meeting his or her debt obligations, bankruptcy may be an inevitable step in restoring financial stability to their lives. A formal declaration of bankruptcy stops the creditor collection process and the debtor no longer owes some or all the unsecured debt, but the damage to your credit profile can be quite extensive and last for years. Bankruptcy is a last-ditch debt relief effort that should only be taken on when absolutely necessary.
Figure Out Where to Go from Here
Do you have a legitimate financial hardship condition?
A majority of debt problems in North Carolina are due to a: loss of income, medical issue, or divorce/separation. Each of these situations can create a financial hardship and can happen to anyone through no fault of their own, but any one of these situations can throw a household budget into serious chaos.
Debt Settlement is not a “free lunch” system for people who don’t want to repay their debts. Rather, it is a debt relief program for those are over their head in bills due to a hardship circumstance, and you’d prefer to work things out with your creditors rather than declare bankruptcy in North Carolina; then Debt Settlement can provide an honest and ethical debt relief alternative.
Are you committed to getting out from under your debt?
Debt Settlement is an aggressive approach to debt relief; and, as such, it presents an occasional challenge. Your level of commitment to staying the course, even when the road gets a little bumpy, often determines success. For those who are willing to see it through, debt settlement can get you through your financial difficulties faster and at a lower cost than any other debt relief option in North Carolina.
Are your debts primarily from credit cards?
Most types of unsecured debt can be negotiated, including lines of credit, signature loans, repossession deficiencies, financing contracts, department store cards, miscellaneous bills and more. The deepest discounts, however, are usually obtained with credit card debts; so, if most of your debt load is comprised of credit card debt, you can anticipate good results from the Debt Settlement strategy.
Can I Trust New Era Debt Solutions to Handle My Settlement Properly?
You can pick the good debt settlement companies from the bad ones by asking these 14 important questions. Beyond this, it’s always a good idea to check the Better Business Bureau (BBB) for the company’s rating with clients in North Carolina. New Era Debt Solutions is rated an A+ with the Better Business Bureau.
New Era has been helping North Carolina consumers become debt free since 1999. We’ve settled over $250,000,000 in debt and worked with thousands of clients from states across the country. You don’t have to take our word for it; visit our Testimonials page to read or listen to reviews that past clients have written for debt settlement in Mecklenburg County, Wake County, Guilford County, Forsyth County, Cumberlound County and other areas from around North Carolina.
Here’s what makes New Era different from other North Carolina Settlement Firms:
No Upfront Fees. A Debt Settlement company should not charge you any fees unless or until they settle your debt. Period. This is not only the most ethical way to do business – per an FTC ruling effective October 27, 2010, it’s also the only legal way to charge fees.
- No “add-on” fees.Some debt settlement companies try to get around the law by charging administrative fees, signing fees, consultation fees, and various other excuses to get money from you. Good guy debt settlement companies such as New Era charge only a settlement fee, which you do not pay until your debt is settled.
- End-to-end service.Some “debt settlement” companies you may talk with are only sales groups who will sell or pass your account off to a different company to handle your settlement. This means your financial data is being passed around and the salesperson has no control over – or interest in – how your debt is settled. Look for a company such as New Era who will handle your program from beginning to end.
- With the crash of the sub-prime mortgage industry in North Carolina many new debt settlement companies headed by prior mortgage industry people suddenly popped up. These companies do not have nearly the experience or the relationships that lead to your best settlement deals. Look for companies who have been around long enough to amass a solid settlement track record. For example, New Era has been settling debts since 1999, and we’ve settled more than $250,000,000 in debt for our clients.
Get Started on the Road to Debt Relief Today
Are you a North Carolina consumer looking for an affordable debt relief program? Call today to get a FREE analysis of your debt from an experienced professional at New Era Debt Solutions. We can show you how much time and money you can save by choosing the right debt relief company. Contact us to get started or call (800) 527-4421 today.