Behind Rhode Island’s sandy shores and its gilded age mansions in Newport, lies high credit card debt.
How much credit card debt is in Rhode Island?
According to Experian, the average balance on credit cards for a consumer in Rhode Island is $6,375. Some states have much higher debt, like in Alaska, where the average credit card balance is $8,515 but we could be doing even better. Keep in mind, $6,375 may not seem like an outrageous amount of debt, but after adding in the interest that a person pays, this small debt can accumulate to over $12,000.
When paying minimum payments to pay off $6,375 in credit cards that have an interest rate of 25%, at that rate, it would take just over seven years to pay off the balance. No wonder why so many Americans are buried in debt, it’s not their fault that credit card companies choose to take such high interest, rather than letting more of the monthly payment go towards the principle.
How to Reduce Debt in Rhode Island
In 2004, Golden Financial Services (GFS) created Rhode Island debt relief, settlement and consolidation programs. Providence, Warwick, Cranston and Pawtucket were the first cities in Rhode Island where these programs were offered. They were such a success that GFS opened the programs for the entire state to use.
As of 2019, GFS is the only debt relief company in Rhode Island offering all of the best options for consumers to choose from, including an attorney model debt negotiation plan, debt validation services, and consolidation options.
Want to get out of debt on your own, without a program?
You can use the debt snowball or avalanche method to quickly pay off credit cards on your own.
However, you must be able to pay more than the minimum payments to use either of these two options.
Can you afford to pay more than minimum payments right now? If not, try making a budget.
Step 1:
Create a budget analysis by inputting all of your expenses in one column and income streams in the other.
Step 2:
You will now have a visual of all your bills in one spot. From there, scroll down and try to find ways to reduce expenses.
Step 3:
After reducing one of your expenses, now you can afford to pay more than the minimum payment on at least one card. You are now ready to use the debt snowball or avalanche method to get out of debt quickly, which you can learn about on this page next.
Can’t afford to pay above the minimum payment?
Consider Rhode Island Debt Relief & Consolidation
Rhode Island debt relief services can help a person to avoid bankruptcy and get out of debt fast, but what is the right option for you?
Depending on if you are current or behind on payments, credit score and type of creditors you owe, all play part in determining the best plan for you.
Debt settlement usually is not your best option. Debt consolidation, consumer credit counseling and debt validation are options that you should consider before resorting to settling your bills.
You have to consider the positive and negative side of each debt relief program before joining.
How to Compare the Total Cost of Debt Consolidation Programs in Rhode Island?
Make sure to go over the total cost of each option by using this debt calculator tool here. The math needs to make sense. Compare how much you’ll end up paying in the end. You can then pick the option that will save you the most if you are eligible.
Look up the company’s Better Business Bureau credentials, how long they have been in business and the company’s online reviews before joining.
Here at Golden Financial Services, we make it easy for Rhode Island residents to find the right option.
Our IAPDA Certified debt relief counselors are available to help you for free at (866) 376-9846!
Staff members are highly trained and friendly. When you call into Golden Financial Services, prepare to get educated! You can ask questions and get all of the answers that you need.
The following page summarizes each debt relief program; and both the benefits and downside to each plan.
Here are recent Golden Financial Services Rhode Island Debt Relief Client Reviews (click image to make it larger)
12 Debt Collection Harassment Tips for Rhode Island Residents
- Don’t tell a debt collector any personal details over the phone, request that they send you whatever it is they want to tell you on the phone – in writing. If they are not willing to put it in writing, it’s most likely a lie, whatever they’re saying.
- Whatever you do, don’t admit to the debt. Let them know that you do not agree with the amount they say you owe, and to send you an itemized breakdown and statement, illustrating how they came up with the amount they’re claiming you owe. DO NOT say anything else at that point. It is common for a debt collection company to add in additional fees and interest that you never agreed to, so never agree to the amount they say you owe unless they provide the details in writing and explain how they came up with that amount.
- Show NO EMOTION. Debt collection companies thrive off scaring people. The biggest trick to dealing with a debt collector is to show NO EMOTION in your voice and tone. Don’t show that you’re scared.
- It’s illegal for a debt collection company to call you earlier than 8 A.M. and later than 9 P.M.
- Make sure to write down exactly what they say to you over the phone or try to record the call if possible, so that you can use what they said to you – against them! They have apps on your iPhone that can make it easy to record calls.
- It’s illegal for them to use profane language.
- It’s illegal for Rhode Island debt collectors to tell you that you’ve committed a crime by not paying a debt.
- If you tell the debt collector–even one time–that you are–not allowed to get calls at work–and they call you a second time at your job – that’s ILLEGAL!
- The Rhode Island Statute of Limitations on debt collection accounts and credit card debt is ten years.
- Did the debt collection company send you a letter before calling you? If not, you can let them know that they need to send you a letter illustrating who they are (their legal name), the amount that you allegedly owe, that you can dispute the debt if you don’t agree with it and the name and address of the original creditor–by law they’re required to send you this within 5-days after you request it on that first call. After that phone call, they now have only five days to send it.
- Rhode Island debt collectors cannot send you any type of letters that look like a judgment or lawsuit unless it really is one. If they try to make you think that they will sue you or a lawsuit is pending, that is also illegal. Unless there is truly a lawsuit in place, they cannot try to scare you by making it seem as though a lawsuit is pending or going to happen soon if you fail to pay. Let the debt collection company know that you know – this scare tactic is ILLEGAL!
- If you send a Rhode Island debt collection company a written request asking for proof that they’re licensed to collect on debt in Rhode Island, and they cannot provide you this proof, they must stop collection on the debt. The debt will become legally uncollectible and they can no longer report it on your credit. A Rhode Island debt collection company must provide proof that they’re licensed to collect on debt in Rhode Island.
For a Free Debt Relief Evaluation, Rhode Island Residents Can Call (866) 376-9846 Today!
Debt Validation in Rhode Island
Some consumers use a program called debt validation. Debt validation is where a debt can be disputed. It’s your legal right.
If your creditors can’t prove it’s valid, which surprisingly they often can’t – you may not have to pay it. When a debt is proven to be “invalid” or “invalidated”, the debt collection company can no longer “legally” report the debt on your credit.
Here is a debt validation letter, showing how the debt collection company (originally Citibank) is agreeing to stop collection on the debt and remove the negative marks from the client’s credit report.
This type of program utilizes federal laws to challenge third-party debt collection companies. The objective is to protect a person’s consumer rights and ensure the third-party debt collection companies are abiding by the federal laws.
Due to the possibility of the debt and negative marks coming off your credit, and due to the possibility of not having to pay an unsecured debt collection account, debt validation is one of the most popular debt relief programs in 2018 for Rhode Island debtors to consider.
Rhode Island Debt Validation Benefits
- You may not have to pay the debt, where all you would end up paying is the debt validation program fees
- The debt could come off your credit report entirely
- The debt collection company must stop all collection activity until they prove the debt is valid by producing all of the correct information and complete documentation being requested
Rhode Island Debt Validation Downside
- Creditors can sue
- Creditors don’t get paid
- Credit can be negatively affected
- Not everyone qualifies, and not all debts will qualify
For a Free Debt Relief Evaluation, Rhode Island Residents Can Call (866) 376-9846 Today!
Golden Financial Services is not a debt validation company. We have partnered with a document preparation company that can assist you with sending out the debt validation package to dispute your debt.
Debt Settlement Rhode Island
Debt settlement programs make it easier to pay off multiple unsecured debts at once. A debt settlement company sets up their clients with a single monthly payment.
Your creditors’ “are not” paid each month with debt settlement, but a debt settlement company gives you only a single payment to worry about each month for the purpose of making it easier for you to manage your monthly bills. Your monthly payment is deposited into a trust account with debt settlement and accumulates there until there is enough money available to settle your debts one by one.
Rhode Island Debt Settlement Benefits
- One low monthly payment
- Debt free in around 24-48 months
- Pay less than the full amount owed on each account
For a Free Debt Relief Evaluation, Rhode Island Residents Can Call (866) 376-9846 Today!
The downside to Debt Settlement
- If you settle a debt for less than the full balance, the IRS could consider the amount saved as income. To deal with this potential tax consequence, talk to an accountant about filing a #984 tax form to show that you were insolvent. If you are insolvent, you would not have to pay any taxes on the amount saved in a settlement.
- To use a debt settlement program you must be behind on your credit card payments. Creditors are not paid on a monthly basis with debt settlement, as they are with debt consolidation. Therefore, credit scores and additional negative consequences come with debt settlement. Creditors can sue, late fees and interest can accrue on top of your original balances.
- To view, a full list of disclosures visit this page next.
Requirements include;
– Total accumulative debt must be above $2,000
– Only unsecured debt is eligible for the program
– Individual account balances must be above $200 per account
– Debts ranging from credit card debt to student loan debt is all qualified for the program (nearly any type of unsecured debt qualifies)
– With debt settlement, Rhode Island consumers must have a hardship
Rhode Island Consumer Credit Counseling
With consumer credit counseling, Rhode Island consumers can reduce their interest rates and consolidate their payments into one. With this type of program, it’s not a loan.
Rhode Island Consumer Credit Counseling Benefits
- Reduced interest rates on credit cards
- Only one monthly payment
- You get to stay current on your payments, leading to less of an impact on your credit score
The downside to Consumer Credit Counseling
- Takes around 5 years to finish the program
- Monthly payment stays around the same as when paying minimum payments on credit cards
- It is reported on your credit that you joined a consumer credit counseling program
Requirements include;
– This program is for credit cards only
– Cannot be in collection status
– Late fees can be waived if approved for the program
– Total balance must be above $2500
Golden Financial Services is not a consumer credit counseling company but can refer you to a non-profit Rhode Island licensed consumer credit counseling company.
Debt Consolidation Rhode Island
With debt consolidation, Rhode Island consumers can have all of their debt paid off in full through a loan. Golden Financial Services does not offer consumer loans, but in general debt consolidation loan companies in Rhode Island will require the following.
Requirements include;
– Must have a high credit score (above 700 FICO score on average)
– Must have sufficient income to show a low debt to income ratio
– Must have a low debt to credit ratio (credit limits cannot be all maxed out)
Keep in mind that with debt consolidation, it is only a viable option if your new loan is one with a low-interest rate. In terms that are easy to understand, to get a low-interest rate loan, your credit needs to be in good shape. If you have bad credit, debt consolidation is not a smart option.
PRO TIP: When it comes to debt consolidation, you can even use a home equity line of credit. This is one of the smartest options for Rhode Island residents to consider, due to the low-interest rates that come along with a home equity line of credit.
Best Rhode Island Debt Relief, Settlement, and Consolidation Company
Golden Financial Services has been assisting consumers in Rhode Island with debt relief since 2004. We work with the top debt relief providers in the nation and can help you to find the right program for your particular situation.
For a Free Debt Relief Evaluation, Rhode Island Residents Can Call (866) 376-9846 Today!
How do Rhode Island Debt Relief Programs Affect Credit?
Debt settlement Rhode Island plans require a person to be delinquent on monthly payments, to the point where accounts are eventually sold to third-party collection agencies. Obviously, your credit score will take a hit once you fall behind on payments. However, credit scores also are negatively affected when your credit cards are maxed out.
After each account is written off and sold to a collection agency, each debt is then reduced and paid off. Accounts get reported with a zero dollar balance in the end. The downside with settlement plans is that late marks and collection accounts remain on credit reports for up to seven years.
With validation services, if accounts are proven to be invalid the debt gets removed from a person’s credit report entirely, in many cases. For this reason, validation should be your first option.
If you have a high credit score right now and can comfortably afford to pay minimum payments or more you could use debt consolidation to save money on interest.
Debt consolidation loans in Rhode Island can be used to help a person’s credit score improve because all credit cards get paid in full. Your credit utilization ratio then improves and payment history remains positive.
You can use a home equity line of credit, balance transfer cards and any type of bank loan to consolidate your debt and improve your credit score. Rhode Island credit unions are known to have the lowest interest rate loans. To qualify for a low-interest loan a person’s credit score needs to be above 715 in most cases.
