Steeped in rich history and lively traditions, the state of Louisiana is a popular destination for music lovers, seafood eaters, and culture buffs. Unfortunately, it’s also home to over four million people dealing with debt issues. Whether from a medical emergency, lost job, separation/divorce or any other kind of financial hardship, a credit card balance that’s out of control can quickly become unmanageable. Fortunately, there are multiple options for debt relief in the Pelican State.
Money Fit offers personalized solutions for debt relief in Louisiana. Our team of expert credit counselors can help you navigate the many choices available and select a debt solution that’s best for your unique situation. We’ve helped hundreds of individuals just like you break out of the debt cycle and get back on track with their finances.
The most common option for debt relief in Louisiana is a credit counseling agency that offers a Debt Management Plan (DMP). This is a monthly payment plan negotiated by a credit counselor on your behalf to pay down your unsecured debts, including credit cards, student loans and medical bills. The goal of this method is to lower your interest rates, waive certain fees and combine multiple debts into one, affordable monthly payment.
With an average credit utilization ratio over 35% and low credit scores, it’s no wonder that 3,600 Louisiana residents reached out to us last month for help. While many of these individuals are doing their best to keep up with payments, the high interest rates and costs of living make it nearly impossible. Those who are in over their heads may be considering bankruptcy as a last-ditch effort to escape the debt trap.
A variety of state-run programs are offered to assist the residents of Louisiana with reducing and managing their debt. Some of these include Family Independence Temporary Assistance for Families, which helps families in need of emergency cash, and Child Care Assistance for Families, which provides low-income working parents with support services so that they can stay employed and maintain adequate childcare.
Other state-run programs for debt relief in Louisiana include the Community Property States program, which allows spouses to split up the assets of a deceased loved one’s estate after their death. This method of debt relief can reduce a beneficiary’s tax burden and can be more efficient than probate.
The State of Louisiana has laws that protect consumers from debt collector harassment and other deceptive practices. However, these protections are only as effective as the consumer’s knowledge and willingness to use them. Those looking for a trusted debt relief company in the state should take the time to thoroughly research their options, as even legitimate companies can still leave consumers worse off than they were before they started working with them. Consumers should avoid debt relief companies that charge upfront fees or promise quick, drastic reductions in their outstanding debt. Instead, opt for a debt relief company that provides a free, no-risk consultation to assess their needs and recommend the most appropriate solution. Click here to see some frequently asked questions.