Finding debt relief in Alaska isn’t any harder than any other state in the U.S. Although Alaska is noted as being the third wealthiest state in America, it happens to also be the second most expensive state to live as well (because of the distance from the U.S.’s other contiguous states). One can easily see how debt can become a problem here, if not careful.
The median Alaskan household income is $64,576. The average credit score in Alaska is the 21st highest, at 659 and the average household credit card debt is $7,937. In 2011, Alaska was listed as one of the top five states with the highest credit card debt.
Alaska Debt Relief Services
The debt relief services in Alaska are like anywhere else. The options consist of debt consolidation loans, debt management, bankruptcy and debt settlement. All of these debt relief options have their pros and cons. A financial advisor can help Alaska residents with choosing the best debt relief solution. Here is a summary of each of the Alaska debt relief options:
- Debt management: With credit counseling services, debt management can be obtained, helping Alaskan consumers deal with their debt problems. This is similar to debt settlement, except all of the debts will be transferred to the debt management company, who will pay the debts for the consumer, using a bank account of the consumer. Agents from these companies also assist with lowering interest rates, monthly payments and the overall outstanding balance.
- Debt settlement: This is a popular debt relief solution used by consumers. A debt settlement agent will negotiate with creditors on behalf of the debtor to have outstanding balances lowered.
- Debt consolidation loan: Consolidating all of your debt can be done with a debt consolidation loan. This product can be obtained from banks, lenders and debt relief companies. One of the most popular is the home equity loan, but this uses your home as collateral.
Alaska Debt Collection Laws
Each state has its own rules and laws regarding debt collection from consumers. Under the Fair Debt Collection Practices Act, which is enforced by the Federal Trade Commission, consumer protection laws were set in place. For instance, the following are prohibited debt collection practices:
- Creditors are not allowed to call a debtors workplace, friends, neighbors, family members or co-workers about financial obligations.
- Collectors cannot claim property unless it was used as collateral to obtain the loan/credit.
- When a debtor has a lawyer, the collector should only communicate with the lawyer, not the debtor.
- Collectors are not allowed to falsely inform debtors to file a dispute or response against the claims, nor can they tell the debtor to sign a confession of judgment.
- No fees are allowed to be added by the collector to the debt owed by the debtor.
Alaskans can use legal services or debt management services to help with the debt that they owe. It’s important to only use an experienced and licensed professional company or lawyer for debt relief in Alaska.