Are you struggling to pay off credit cards? Hawaii debt relief programs can help. Can’t afford to pay even minimum payments on credit cards? Hawaii debt settlement programs can cut your balances to a fraction of what you currently owe. Sick of high-interest rates? Check with a local credit union in Hawaii. Debt consolidation loans can offer you a consolidated payment with less interest. But whatever you do, avoid online lenders that try to charge upfront fees for a high-interest loan. The following page will teach you about Hawaii’s debt relief, settlement, and consolidation options!
Hawaii debt relief, settlement, and consolidation programs can:
- First, protect you from illegal debt collection activity. For example, if you believe a collector is illegally attempting to collect on a debt that expired the statute of limitations in Hawaii (i.e., six years since it was last paid). Or, if you’re receiving creditor harassment, Hawaii debt relief programs can put a stop to it immediately.
- Reduce credit cards, student loans, and unsecured debt through the Hawaii debt settlement program. Debt resolution programs in Hawaii are also available that include debt validation.
- Consolidate monthly payments into one lower payment through a debt consolidation loan. Hawaii credit unions can offer you a low-interest consolidated loan with a high credit score. Although a loan is not a debt relief program, it’s a way to save money on interest and pay off bills faster.
- Hawaii debt relief programs can also protect your credit from inaccurate information. For example, incorrect information can get disputed through a debt resolution program.
Start by speaking with a debt counselor. Then, learn about Hawaii debt consolidation and credit card relief options at (866) 376-9846.
Credit card debt in Hawaii is expected to grow over the next several years as interest rates rise and the after-effects of COVID-19 continue to linger. But Hawaii’s not the only state with this predicament. Arkansas, Arizona, Wyoming, and many other states expect to see credit card balances rise and more people fall behind on monthly payments.
But there is good news.
On a positive note, Hawaii boasts a median household income of $85,203 (the highest in the nation). And although credit card debt is snowballing in Hawaii, there are still nine states with a higher average credit card debt than Hawaii. Check it out.
Do all Hawaii debt-relief options ruin credit scores?
Consumers have multiple debt relief options in Hawaii to choose from that don’t hurt their credit scores. These options include using a consolidated loan, the debt snowball, and avalanche methods. And if you do need to fall behind on monthly payments due to financial hardship, it’s not the end of the world. Credit scores can be rebuilt, and positive credit and payment history can be re-established.
States with the highest credit card debt
- Alaska – $10,685
- Virginia – $9,120
- Texas – $9,100
- Maryland – $9,009
- Connecticut – $9,000
- New Jersey – $8959
- Georgia – $8,738
- New York – $8,510
- Colorado – $8,463
- Hawaii – $8,423
Source: Bankrate, 2021
Credit card balances in Hawaii are growing as of 2022
With credit card balances growing by over 3% per year, the demand for debt consolidation is also increasing. But before you jump into a high-interest loan, consider all debt relief programs. Hawaiians can choose from debt settlement, consolidation, management, validation, and credit counseling plans. All of your options are explained on the following page. And at any point, call to talk with an IAPDA certified counselor for (free advice).
We recommend you try the debt calculator below to get a quote on each program.
To qualify for a debt relief program in Hawaii, a person must have over $7,500 in total unsecured debt. Unsecured debt includes credit cards, medical bills, collections, and unsecured personal loans. Suppose you have under $7,500 in total debt. In that case, we recommend using some of the free tools on this website, including the budget calculator, snowball calculator, and even the debt validation letter creator.
About Golden Financial Services & the Hawaii Debt Management Companies Recommended
- All A+Better Business Bureau Ratings Including Golden Financial Services (click to verify)
- Rated #1 By TrustedCompanyReviews.com (click here to check ratings)
- Offering debt settlement for Hawaii residents Since 2004
Compare Credit Card Debt Relief Programs in Hawaii
Try Debt Calculator to Compare Debt Management Programs (Hawaii Residents Only)
Hawaii Debt Validation Program
If you can’t afford to pay your debt, debt validation could be your solution. Debt validation is the most popular option for consumers who don’t have the money to pay their debt. This program can be the least expensive way to deal with debt and get it off your credit report.
- Free credit repair included
- Negative marks can come off credit
- Pay a fee and nothing else
- Written guarantee
What if debt validation doesn’t work?
If a debt is validated or a summons is received, a full refund is provided for that account. In addition, the debt will then get settled by a law firm for no additional cost!
Debt Settlement – Hawaii (Pros & Cons of the Program)
Millions of consumers have used debt settlement services to escape high unsecured debt. It works!
Neither reason is the consumer’s fault. At Golden Financial Services, part of our success relies on how transparent we are with consumers and the amount of education we provide consumers before enrolling them in a program.
Hawaii debt negotiation and settlement services allow you to sit in the backseat and relax while professional negotiators steer the wheel and drive you out of debt.
How Fast Can You Become Debt-Free With a Debt Settlement Program in Hawaii?
You can choose from one comfortable monthly payment that gets you out of debt anywhere from 12-48 months.
Debt Settlement Payments Go Into a Special Purpose Savings Account
Client payments go directly into an FDIC-insured trust account every month. Clients have complete control over this account. This savings account is where the funds accumulate so that the debt negotiators can begin settling each debt one by one. A debt settlement program’s fees also gather in this account but are only earned after a debt gets settled and resolved, ensuring clients only pay if results get achieved. For example, after a debt negotiator gets a creditor to agree to a reduced debt payoff amount, the client is contacted right away with the settlement details and, at that point, can either approve the settlement or reject it. If they accept the settlement agreement, the funds are released from their trust account and paid directly to the creditor.
The reason that debt settlement companies use a trust account of this type is to monitor the funds available for settlements.
How fast a person can save money in their special purpose savings account (i.e., their trust account) determines how fast they can become debt-free. Payment plans are flexible, but the higher the payment, the quicker a person can become debt-free. “The payment” is the amount that gets deposited into the trust account each month. No matter how many creditors a person owes, they will only have one payment on a debt settlement program each month. Hawaii residents are set up with only one payment every month after getting approved for the program. The plan is easy for a person to manage rather than to pay multiple creditors on their own every month.
Effect Debt Settlement Has on Credit
Since creditors are not paid monthly, credit reports will show late fees and collection accounts. Consequently, credit scores can go down temporarily, and balances will grow higher before getting settled and paid off. But the good news is that after a debt goes to collection, that’s where it gets negotiated down to a fraction of the total owed. Collection agencies only pay 10%-20% of what the total debt is worth when buying credit card accounts. Since collection agencies pay such a low price for debt, they are willing to settle the debt for around half before debt settlement company fees.
The original creditors will wipe their hands clean of debt after approximately four to six months of the consumer being delinquent on payments. The original creditor will then get reimbursed through insurance for the debt and sell the debt to a collection agency. On top of that, the banks get reimbursed through tax credits by showing a loss on the debt. So don’t think that the banks won’t get paid back!
A Portion of Balance Gets Forgiven
In the end, a portion of credit card balances and collection accounts can get forgiven, allowing clients only to pay a fraction of the total debt owed.
Tax Consequences of Settling a Debt For Less Than The Full Amount
If a client receives a tax bill after a debt gets settled for less than the total amount owed, they will request that their accountant help them file IRS Form #982. This tax form will illustrate insolvency and can eliminate any tax debt owed.
Can I Get Sued While on a Debt Settlement Program?
Another downside to keeping in mind about debt settlement is that creditors could issue a summons to go to court (this is rare and happens on less than 5% of the accounts enrolled in the debt settlement program). The original creditor will sometimes issue a credit card summons rather than just writing off the debt and selling it to a collection agency. This is their way of making someone’s life more difficult. But again, experienced debt settlement companies in Hawaii and debt settlement attornies know that most credit card lawsuits are frivolous and filled with errors and inaccuracies. Credit card companies issue a case hoping that the person will skip court out of fear. So the rule of thumb is never to miss court.
Can A Credit Card Lawsuit Get Dismissed?
Send the credit card summons to the debt settlement company and let the negotiators respond to it immediately, then work to either get the debt dismissed or settle it for less than the total owed as they would any other debt. Even if a person receives a summons, reputable debt settlement services will know exactly how to resolve this debt and successfully get their client through the program.
When fought, credit card lawsuits can get dismissed, or at the very least, they can get settled for much less than the total amount owed, just like a regular debt settlement but typically cost slightly more. For example, a credit card summons may get settled at around 60%-70%, whereas any other debt could get reduced by 40%-50% (before fees).
Hawaii Debt Settlement Lawyers
Debt settlement programs recommended through Golden Financial Services include legal protection with a reputable settlement law firm.
How Much Money Can You Save With Debt Settlement?
In total, Hawaii residents will save around 30% of their total debt when using debt settlement services. In other words, including debt negotiation fees and what gets paid to the collection agency, clients end up paying back around 70% of their total debt.
Debt settlement is preferred over bankruptcy, but it’s not the preferred program for Golden Financial Services clients.
Hawaii residents prefer debt validation over debt settlement, and here’s why:
- 1. debt validation includes a money-back guarantee, and debt settlement does not
- 2. debt validation does not result in any tax consequences if the debt is proven invalid
- 3. debt validation is less expensive than debt settlement when results are successful
- 4. debt validation can result in a debt becoming legally uncollectible, and a lawfully uncollectible debt can’t legally remain on credit reports
- 5. debt validation includes credit restoration for no additional cost
- 6. debt validation contacts all collection agencies immediately, putting a stop to collection harassment and phone calls
Is Golden Financial Services the Debt Relief, Settlement, and Management Company in Hawaii?
Golden Financial Services works with the top-rated and most reputable debt relief, settlement, and consolidation companies in the nation. Our mission and job are to help you find the lowest possible payment and best debt relief program to help you get out of debt successfully and save the maximum. Our IAPDA Certified counselors are trained on each program and are legally obligated to go over how each program works and make sure you understand the downsides of each plan as well. We will help you get approved for the method of your choice and work to lock you in at the absolute lowest possible payment.
What’s different about Golden Financial Services is that we give you the power to choose based on what suits you best. There is not just one plan to choose from but multiple programs available, ensuring you get the correct type of assistance.
We only recommend Hawaii debt relief lawyers and debt reduction companies that maintain and have:
- an A+ BBB rating
- are IAPDA certified
- maintain positive online reviews
- a proven track record of success
- offer programs that include lawsuit defense, legal protection, and a money-back guarantee of some type
Golden Financial Services IAPDA Certified Professionals can explain everything to you at 866-376-9846.
Non-Profit Consumer Credit Counseling in Hawaii
Suppose you can comfortably afford minimum payments or higher, consumer credit counseling may be your best option. Your creditors continue to get paid with consumer credit counseling but at a reduced interest rate, and you only have to make a single payment each month. The consumer credit counseling company is who you pay, and they will then disperse the funds to your creditors each month but at a reduced amount.
What’s excellent about consumer credit counseling is that you can be 1-2 months behind on your credit card payment, and consumer credit counseling can re-age the account so that you’re current on payments and late fees get waived!
Golden Financial Services is not a non-profit company. Still, if you qualify for consumer credit counseling, we will refer you to one of the best licensed and non-profit consumer credit counseling companies in Hawaii.
Bankruptcy Debt Relief Hawaii
Golden Financial Services does not recommend bankruptcy unless it’s for extreme cases, like if someone is on the urge of losing their home and bankruptcy is the only route to save it, or if a person has been served with multiple credit card lawsuits. Hawaii residents interested in bankruptcy must consult with a Hawaii attorney specializing in bankruptcy, but be careful because attornies will often try to sell a consumer on bankruptcy even if it’s not their best option. Chapter 13 bankruptcy requires a person to pay at least half of their debt back over five years, so unless this type of bankruptcy is being used to save your property from foreclosure, why else would anyone ever want to go this route? Credit Counseling, debt settlement, and validation services are preferred over bankruptcy.
Bankruptcy debt relief can negatively affect a Hawaiian credit score for over seven years, so avoid it at all costs!