Debt can feel like a never-ending cycle of payments with no end in sight. If you’re in this situation, it’s important to remember that you’re not alone and there are options available to help you do debt consolidation in Louisiana. Seeking help is the first step to becoming financially independent. There are many resources available to those who are willing to work towards regaining their financial stability. With determination and effort, you can break free from the cycle of debt.
There are many resources available to help you get out of debt and protect yourself from unscrupulous debt collectors. Louisiana has a number of laws in place to protect consumers from excessive interest rates, aggressive debt collection tactics, and more. If you need help getting out of debt, consider contacting a nonprofit credit counseling agency or consumer protection.
In Louisiana, it’s important to know the ins and outs of borrowing and the laws that protect you. This article will take a closer look at these topics, as well as the resources available if you find yourself in a bind.
An Overview Of Louisiana’s Debt
Since the devastating effects of Hurricane Katrina in 2005, the southeastern state of Louisiana and its residents have required assistance in the form of federal funding. In terms of federal spending, Louisiana ranks fourth-highest in the nation. In Louisiana, the cost of living is lower than the national average. This is due to the state’s strong economy. However, unemployment rates are still high, with 4.5 percent of citizens out of work.
As Louisiana home values continue to rise, many residents are finding it difficult to afford the median monthly rent of $1,250. For those trying to buy their first home, the situation is even direr. The good news for homeowners is that their property values have increased by 1.3 percent over the past year. However, this does little to help those who are struggling to keep up with rising costs.
According to the New York Federal Reserve, Louisiana residents have less credit card and mortgage debt on average than most other Americans. However, the state ranks second in the nation for car loans and 23rd for student loans.
How To Get Out Of Debt In Louisiana?
No matter how much money you owe, there are always steps that you can take to get your finances under control and eventually become debt free. For example, you can:
Consolidate Debt
If you don’t have a bad credit score, you might be able to do debt relief in Louisiana with a lower-rate personal loan or credit card. This could help you save money on interest or get lower, more predictable monthly payments. This can help you stay organized and feel less overwhelmed. However, depending on the interest rate and repayment period, you may end up paying more in the long run.
Refinancing
There are a few options available to help ease the burden of high-interest debt. One is to work with your lender or a third party to refinance one of your larger loans, such as your mortgage or auto loan, at a lower interest rate or with a longer payment term. This can secure more affordable terms or lower your monthly payments so that you can free up cash for other, higher-rate debts. However, if you refinance federal student loan debt by transferring it to a private company, you will no longer be able to take advantage of certain protections, such as deferring your payments or setting up an income-driven repayment plan.
Try A Balance Transfer Card
If you have good to excellent credit, you may be able to transfer your debt to a card with a low or 0% APR. This could help you save money on interest and pay off your debt more quickly. However, you typically need a strong credit score to qualify for the best promotions. You may also get stuck with a high-interest rate on your remaining debt if you can’t afford to pay it all off at the end of the card’s promotion.
Negotiate Better Terms
You can talk to your lender about lowering your interest rate or minimum payment, or you can try to work out a more manageable debt repayment plan.
Bankruptcy Filing In Louisiana
If you feel like you’re stuck in debt with no way out, you may be able to file for bankruptcy. This will discharge most types of debt, with a few exceptions like student loans. To get your student loan debt discharged, you must prove that the payments are causing you extreme hardship.
Bankruptcy is a difficult alternative that can have a lasting impact on your credit. Depending on the type of bankruptcy, it can stay on your credit report for seven to 10 years.
If you file for Chapter 7 bankruptcy, you may have to give up some of your most valuable assets in order to pay off your debts. However, with Chapter 13 bankruptcy, you may be able to keep more of your belongings. While this option does require a long-term repayment plan, it could help you get out of debt for good.
Bankruptcy can be a fresh start for people who are struggling with unmanageable debt. It can help you get out from under debts that you can’t afford and allow you to move on with your life.
Statute Of Limitations
In Louisiana, you are protected from being sued for a debt that is too old to be prosecuted under the state’s statute of limitations.
If the debt is too old to be sued on, then you’re in the clear. However, if you decide to take responsibility for the debt and agree to pay all or part of it, that could potentially restart the clock on the statute of limitations, depending on where the debt originated and state law. You may want to speak with a Louisiana lawyer before taking any action.
As an example, a debt collector or creditor in Louisiana can only sue you for overdue debt that is three years old or less. If the debt is more than three years overdue, the collector or creditor can still try to collect the debt from you, but they cannot use legal remedies such as suing you and obtaining a judgment against you.
Unlike in some states, Louisiana applies the same statute of limitations to nearly all debt, including medical debt, mortgage debt, auto loan debt, and credit card debt.
- Medical Debt: 3 years.
- Auto Loan Debt: 3 years.
- Credit Card Debt: 3 years.
- State Tax: None.
Even if your debt is past the statute of limitations in Louisiana, you’re not necessarily in the clear. Your unpaid debt can still show up on your credit report for up to seven years after you default, which can drag down your credit score. Additionally, you won’t be able to discharge your private student loan debt through bankruptcy unless you can prove “undue hardship” — even if it’s been overdue for more than three years.
Debt can have a major impact on your life, limiting your ability to move forward with your finances. But you don’t have to go it alone; there are resources and laws available that can help you get back on track and protect yourself from further harm.
Louisiana Cities
- New Orleans
- Baton Rouge
- Shreveport
- Metairie
- Lafayette
- Lake Charles
- Bossier City
- Kenner
- Monroe
