The attorney general of Illinois has sued five companies that it claims broke state law when it demanded upfront fees in exchange for assistance with student loan repayment problems. The companies named in the lawsuit reportedly asked for as much as $1,250 to provide services, and none of the amount paid went toward the borrower's student loan balances. One of the main goals of the lawsuit is to help victims regain their money.
Texas residents who are struggling to pay off their debts may be interested in some of the options available to eliminate debt. Depending on a person's situation, any of these options may be the key to ending creditor harassment.
Texas law states that any credit card debt that has been delinquent for more than four years may no longer be enforced by a civil suit. This statute of limitations was created by the legislature to protect consumers from onerous lawsuits that they could not properly defend themselves against because too much time had passed for them to still have access to the relevant exculpatory evidence.
Having a credit card is a big responsibility. However, having a credit card does not have to put a person in debt for the rest of their life. In fact, one of the largest myths is that using a credit card means carrying a large balance from month to month. By paying off the debt each month, a person can use credit without paying interest or going into debt.
Think back to late September of 2001. As the public processed shock and grief related to the terrorist attacks against our nation, many individuals questioned what they could do to help in the aftermath. The public was urged to donate money to help the victims, to send supplies to Ground Zero and to spend money in ways that would prevent the economy from declining significantly.
Many people in Texas struggle with credit card debt without their friends, neighbors or even family members knowing about it. Credit cards allow people to keep up appearances as they continue purchasing luxury items for so long as they keep making monthly minimum payments. Card holders who only pay the minimum every month see their balance quickly gather interest, and before long they can face an overwhelming debt.
The unforeseen has a way of creating a lot of difficulty for people trying to manage their finances. Many individuals in Texas suffered in the most recent recession, often because of circumstances completely outside their control. Others are still feeling the pinch in the form of mounting credit card debt and pressures from creditors.
According to recent data from FICO, the effects of the recent recession may have dramatically affected how young adults finance their purchases. According to the data, about 16 percent of consumers between the ages of 18 and 29 did not have a credit card as of the end of 2012. In contrast, only eight percent of young adults could say the same five years earlier. Instead of credit cards, young people are opting for debit cards.
How often in the midst of the most recent recession have consumers received pitches from credit card companies inviting them to take out a new account? Such offers were common around Plano and other Texas towns and seemed to be indiscriminate in terms of who they were sent to. Someone facing financial hardship was as likely to get the call as someone in the financial pink.
When consumers find themselves strapped for cash, they often turn to credit cards to bail themselves out. As a lot of people in Texas have learned in recent years, this can start a person down a frustrating road that offers no possible hope of debt relief and recovery.