Creditors might become aggressive when seeking to collect on past-due balances. Laws may restrict the behaviors of debtors, but that doesn’t mean they cannot take legal steps to recover any money owed. Once patience expires, a creditor might file a civil suit in a West Virginia court, creating more stress for the debtor. Anyone struggling with financial obligations could explore debt consolidation plans for possible resolutions.
Debt consolidation as a potential solution
A debt consolidation strategy generally involves taking out one loan to pay off several other obligations. Usually, a low-interest loan pays off high-interest credit card balances. A common source for the new loan is a home equity line of credit. Those without a home or another source of secured credit could take out a personal loan. However, personal loans require a good credit score, and high credit card balances would drag the score down.
Some may opt for a “bad credit” consolidation loan. The loan may come with a higher interest rate, but there is only one monthly payment. Meeting one monthly payment obligation could make financial management less stressful.
Working with the creditors
Once a debt consolidation loan pays off other debts, collection action ceases since the balance on the old accounts is now zero. Account-holders may need to exercise disciple to keep the credit card balances from climbing upwards again. However, if someone cannot receive approval for a debt consolidation loan, expect collection action to continue.
Consumer protection laws exist to protect people from harassment and scams. If a collection agency uses illegal means to recover obligations, the debtor may explore legal remedies to address the harassment.
Suing a collection agency for harassment is one option. In some instances, taking strong legal action may be unavoidable.