Florida Debt Consolidation Loans
Along with mile upon mile of the sunny, sandy beaches that hug the state on both sides, Florida does well on the economic front too. The Sunshine State boasts the fourth-largest economy in the United States with a Gross Domestic Product (GDP) of $926 billion in 2016. The major contributors to this growth are general services, financial services, trade, transportation and public utilities, manufacturing and construction.
Adding to this abundance, Florida is one of nine states where residents don’t have to pay income tax. But just because the state’s main industries are profitable, and its residents don’t have to pay income tax, doesn’t mean that everyone is prospering. If you’re dealing with debt and need help, it is available. If you find a reputable company, you’ll be able to check out various credit card debt consolidation options and choose the right path forward for your level of debt and financial situation.
Floridians can free up cash each month with Freedom Debt Relief
Ozzy S., Freedom client²
“Right away, I had more money each month because of program costs so much less than what I was paying on my minimums.”
Excellent •
Questions and Answers about Florida Debt Relief
Here's more information about your debt relief options in the Sunshine State.
What are the main types of debt relief programs available for Florida residents?
Florida residents have many choices when it comes to debt relief programs. Debt consolidation could be a good option if you simply need a more affordable payment. Many credit counseling agencies also offer debt management plans that could help you pay back your debt with guidance and support, and possibly more favorable terms.
If you’re really struggling to make your debt payments, a debt settlement company could help you negotiate for partial debt forgiveness. Bankruptcy, a legal process, could be a good option in some cases if it helps you do a financial reset or get caught up on delinquent accounts. Florida has some of the most generous bankruptcy laws in the nation. In Florida, you’re allowed to keep more of your personal property than in other states.
Aside from the generous bankruptcy exemptions on personal property, Florida residents have the same options as people in other states. In other words, the state of Florida doesn’t operate any special debt relief programs for residents.
Florida debt consolidation eligibility requirements
Florida’s state government has no special debt consolidation programs for residents. Floridians can apply for debt consolidation loans with private lenders, just the same as residents of any other state.
Each lender is free to set its own eligibility requirements, and there's some variation between lenders. That said, your chances of getting approved for a debt consolidation loan go up if you can meet the following requirements:
Credit score of 620 or higher
Stable, consistent monthly income
36% or less debt-to-income ratio—the percentage of your monthly income that goes toward housing and minimum debt payments
The requirements can also vary depending on the type of loan you use to consolidate your debt. You don’t always need collateral to back up a personal loan, for example. If you use a home equity loan to consolidate debt, you need to have enough equity to borrow against.
Florida laws regulating debt settlement companies
Florida has no specific laws that regulate how debt settlement companies operate. Instead, debt settlement companies are directly regulated under federal law by the Telemarketing Sales Rule, which is enforced by the Federal Trade Commission (FTC). This law bans debt settlement companies from charging upfront fees and misleading customers about their debt relief possibilities.
Florida does regulate how credit counseling agencies, which are similar, can do business in the state. For example, a credit counseling agency can’t charge you more than $50 to set up a debt management plan, one of the most common ways that agencies help their customers. Credit counseling agencies can’t charge more than $10 per month for a debt management plan, either. Under Florida state law, agencies must send out your monthly payments to each creditor included in your debt management plan within 30 days, to avoid any delays or late fees.
Pros and cons of debt management plans vs. debt settlement in Florida
At first glance, debt management plans and debt settlement look similar. Here are the differences.
Debt management plan pros:
Streamlines monthly debt payments
Could reduce interest rates and waive fees
Financial education and support
Debt expert handles communication with your creditors
One-on-one support throughout the program
Debt management plan cons:
Unsecured debts only
Monthly payment can be very high
Most people pay monthly fees
You'll probably have to close your credit cards
Initial negative impact on credit score
Doesn’t reduce your debt
Debt settlement pros:
Could substantially reduce debt amount
Knock down debts faster than minimum payments
Affordable payments
No upfront fees
Debt expert handles communication with your creditors
One-on-one support throughout the program
Debt settlement cons:
Unsecured debts only
Forgiven amounts may be taxable
Fees if you work with a professional debt settlement company
Initial negative impact on credit standing
Creditors could still pursue you for the debts
How to find legitimate nonprofit credit counseling services in Florida
You can find reputable nonprofit credit counseling agencies nationwide—including Florida—by getting a referral from the National Foundation for Credit Counseling or the Financial Counseling Association of America. These organizations represent hundreds of member agencies and thousands of individual counselors. You can also find credit counseling agencies on your own.
When shopping around for a reputable agency, consumer advocates recommend you:
Read reviews and ratings from actual customers online
Look for agencies that offer free initial counseling sessions
Check with the office of your state’s attorney general to verify the agency
Ask if the agency offers services on a sliding-fee scale, based on income
Check for a counselor’s qualifications and certifications
If opting for a debt management plan, ask about initial setup and monthly fees
Ask if counselors are paid on commission (which may skew their advice) or a set wage
Choose agencies that offer a range of counseling options, not just debt management plans
Are there specific Florida programs for medical debt relief?
No, Florida has no specific medical debt relief programs. That doesn’t mean you’re out of luck, though.
Medical providers sometimes offer interest-free payment plans. Some may even offer discounts or financial assistance if you qualify. Providers can also direct you to special medical financing options, like deferred-interest credit accounts. Deferred interest means interest-free as long as you repay the debt in full by the deadline. If you don’t, you’ll be charged interest back to the date of the transaction.
If you’re low income and have certain chronic illnesses, you may be able to get help. Check the archives of the National Financial Resource Directory, operated by the Patient Advocate Foundation.
Also check the Statewide Medicaid Managed Care (SMMC) program in your state. This program might help you reduce your healthcare costs going forward so that you can catch up with your current medical debt.
Many pharmaceutical companies offer medication at low or even no cost to eligible individuals. Information is typically on the manufacturer's website or through resources like NeedyMeds.org or Medicine Assistance Tool.
What is the impact of filing for bankruptcy on your credit score in Florida?
The impact of filing for bankruptcy depends on the type of bankruptcy you’re filing rather than your home state. In general, a bankruptcy mark could lower your credit score by as much as 200 points, depending on your individual situation.
If you file for Chapter 13 bankruptcy, the information will stay on your credit report for seven years. The negative impact will diminish as time goes on. A Chapter 13 bankruptcy requires you to make debt payments over five years (three years if you’re low-income).
A Chapter 7 bankruptcy could wipe out some or all of your unsecured debts in a few months. It stays on your credit report for 10 years. The effect on your credit will be less as the years go by, even before it falls off your credit report entirely.
Florida government assistance programs for credit card debt
Florida, like most states, has no special government assistance programs if you’re having a hard time dealing with credit card debt. You’ll need to find ways to handle your debt, such as with a debt consolidation loan or with other options. For example, a non-profit credit counseling agency could enroll you in a debt management plan.
Other strategies include working with a debt settlement firm or filing for bankruptcy. Depending on your income and personal situation, you may also be eligible for public assistance programs. For example, Supplemental Security Income for disabled people, which can offer extra funds that you could use to help pay down your credit card debt. The non-profit resource 211.org (which you can contact by phone) can help you find other support options.
Average cost of debt relief services in Florida
Professional debt relief companies typically charge a fee equal to 15% to 25% of your enrolled debts. The fee is collected after the company successfully negotiates an agreement with your creditor, you approve it, and at least one payment is made. In other words, for every $10,000 in credit card debt that’s successfully settled, you’ll pay between $1,500 and $2,500.
In addition to the debt settlement fee, there are other debt relief costs. You may have to pay a monthly maintenance fee for the bank account where you build up funds for offering your creditors. This maintenance fee is collected by the bank, not the debt settlement company.
If the debt settlement company isn’t able to negotiate your debts, you may owe more fees and penalties. If they’re successful, you may owe income taxes on the forgiven debts.
Other types of debt relief come with extra costs, too. Debt consolidation loans often charge origination fees, and debt management plans often charge setup and monthly fees.
Florida statute of limitations on credit card debt collection
Under Florida state law, creditors have five years to collect on most kinds of debt. After that, you’ll still technically owe it and it'll appear on your credit report for up to seven years, but your creditor can’t legally collect it. If a creditor or debt collector tries to sue you and you think the statute of limitations has run out, you could ask the judge to throw out their lawsuit. Some creditors try to collect on old, uncollectible debt, hoping you’ll pay, but that doesn’t mean they have the right to do so.
Be careful about what you say to debt collectors who call you about an old debt. If you agree to make a payment on the debt, that could restart the clock on the statute of limitations. Even something as simple as acknowledging the debt when talking to a debt collector could reset the statute of limitations in some cases.
It’s time to take action against your debt. There are a variety of paths that can lead you to financial freedom, including debt consolidation.
It might not be right for you, but debt consolidation in Florida could be worth investigating. Debt consolidation may simplify the debt repayment process. If you can secure a loan at a reasonable interest rate, you could make debt resolution less stressful. Most consolidation loans require collateral—a high-value asset such as a home or a car—that you need to put up to receive the loan.
A secured loan is a bit of a double-edged sword: on the one hand, it can help you get a lower interest rate, which means you pay less over time. On the other hand, if you do fall behind or can’t make your payments, you’re in danger of losing your leveraged asset. That means your house could be foreclosed on or your car seized.
The other option is to get an unsecured loan. These may be harder to come by and usually carry much higher interest rates because the lending company doesn’t have any guarantee that you’ll repay the entire loan. An unsecured loan could help simplify your repayment process, but it could also lead to a greater amount of debt in the long run.
Whether it’s debt consolidation or one of the other ways to become debt-free, Florida residents have options. Don’t wait any longer. It’s time to take care of your debt and live a life of freedom. Get started now. The Certified Debt Consultants at Freedom Debt Relief can help you find the right solution for your unique situation. Call 800-910-0065 now.
Request a free debt evaluation to find out how we could help you:
- Resolve your debt faster
- Significantly reduce what you owe
- Make one low monthly program payment
You Are Not Alone
People all over the Sunshine State are struggling with debt. When it comes to credit card debt, Florida has four cities out of the top 25 U.S. cities with the most debt. The state also has the second-highest credit card delinquency rate, with 1.45 percent of Florida cardholders being more than 90 days delinquent on one or more cards.
A debt consolidation loan may be the perfect solution for you if you owe more than $10,000 and you have decent credit. But it will only make sense if the interest rate offered is lower than what you’re currently paying on your cards. Understand that debt consolidation may make repayment easier by restructuring your debt, but it does not reduce what you owe. Credit card debt consolidation may be a better solution if you can’t afford to repay your balances.
The statute of limitations on credit card debt in Florida is five years. But why wait that long and have to deal with calls from lenders? Speak with a Freedom Debt Relief Certified Debt Consultant today to see what debt-clearing route would work best for you. Call 800-910-0065 now for a free consultation and learn about debt consolidation loans and other solutions.
Floridians can free up cash each month with Freedom Debt Relief
Ozzy S., Freedom client²
“Right away, I had more money each month because of program costs so much less than what I was paying on my minimums.”
Excellent •
End Your Debt
Find out how our program could help.
- One low monthly program deposit
- Settlements for less than owed
- Debt could be resolved in 24-48 months
