“Credit card debt in Hawaii grew by 3.4% in the first quarter of 2019 compared to the same period last year ― the biggest year-over-year growth in the nation”, according to credit reporting agency Experian.
Arkansas and Wisconsin were tied for the lowest average credit card debt increase at 0.3%.
On a positive note, Hawaii boasts a median household income of $85,203 (the highest in the nation). And although credit card debt is growing at a rapid pace in Hawaii, there are still nine states that have a higher average credit card debt than Hawaii. Check it out.
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, 2019
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, simply 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 and read the sections about debt settlement and validation carefully.
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. If you have under $7,500 in total debt, 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 a 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. 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! The consumers that don’t make it through a debt settlement program successfully fail because either they weren’t explained the program correctly or because they used an unreputable settlement company. 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 full 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 accumulate in this account but are only earned after a debt gets settled and resolved, ensuring clients only pay if results get achieved. 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 get paid directly to the creditor.
The reason that debt settlement companies use a trust account of this type is so that the company can monitor the funds available for settlements.
Depending on 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 again 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 each month on a debt settlement program. Hawaii residents are set up with only one payment every month after getting approved for the program so that the plan is easy for a person to manage, rather than having 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 eventually 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 cheap 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 a 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 additionally will 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. This is excellent news for the consumer, but one downside of debt forgiveness is that the portion of the debt that is forgiven can be construed as taxable income. Like any downside, there’s always a way to combat it.
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 full 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 keep 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). Rather than just writing off the debt and selling it to a collection agency, the original creditor will sometimes issue a credit card summons. 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 lawsuit hoping that the person will skip court out of fear. So the rule of thumb, never skip 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 working to either get the debt dismissed or settling 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 get their client through the program successfully.
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%, where 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 to 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 is 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 make a choice based on what suits you best. There is not just one plan to choose from but multiple programs available, ensuring you get the right 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
If you can comfortably afford minimum payments or higher, consumer credit counseling may be your best option. Your creditors do 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 the 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 that specializes 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 all preferred over bankruptcy.
Bankruptcy debt relief can negatively affect a Hawaiians credit score for over seven years, so avoid it at all costs!