Home to more than 1.4 million residents, Hawaii is a very small state with a lot to offer to its residents. There are a total of seven major islands in the state, and tourism is a popular economic activity on most of them because of the tropical beauty of the islands. You may not realize, however, that Hawaii has a strong agricultural base as well. Some of the top agricultural products grown in this state include pineapples, coffee, macadamia nuts, bananas and other items. It also has a diverse landscape that includes world-famous beaches as well as hills, mountains and even a volcano.

In Hawaii, approximately 56 percent of the state’s residents rent their homes, and this is significantly below the national average. Accord to the U.S. Census Bureau, the median mortgage payment that homeowners pay each month is $2,270. Renters pay an average rent of $1,438 per month. While the state’s unemployment rate is low compared to the national average at less than five percent, Hawaii has a serious consumer debt problem. The average resident in Hawaii carries more than $6,900 in credit card debt, and this does not include other debts, such as medical bills, loans and more. With the high cost of living in the state, it may be a surprise to learn that the per capita income in Hawaii is less than $30,000 per year. With such significant statistics that paint a dark financial picture for Hawaiians, it is understandable that you may be one of the state’s many residents who struggle with a heavy debt burden. If you are looking for a solution to your debt problem, rest assured that help is available.

Common Debt Relief Options Available in Hawaii

Hawaiians can benefit from several different forms of debt relief. Depending on your financial situation, you may find that one option is best suited for your current needs. For example, debt consolidation is often used by individuals who are still able to make minimum monthly payments and who have maintained a good credit score. It combines all credit card debt into a single installment loan for easier management, faster debt reduction and lower monthly payments. However, if you have already fallen behind on your payments or if you have a bad credit score, you may benefit from an alternative form of debt relief. Debt settlement is most often considered in this type of financial situation, and it is a great alternative to bankruptcy.

Through debt settlement, you will negotiate with your creditors for a reduction in outstanding balances. They are not obligated to agree to write off a portion of your debt. However, if you have already fallen behind on your debts, many will agree to this. Then, the debt may be consolidated into another account so that you can enjoy the benefits of a lower interest rate on an installment loan term. This creates affordable monthly payments that are easier to manage and that yield faster debt reduction. It is easy to get in debt over your head, and paying down debt balances can be a challenge. Through debt relief strategies, however, you may be able to overcome your situation and improve your finances substantially.

Hawaiian Laws Regarding Debt Collection

As a Hawaiian in debt, it is in your best interest to learn more about what the law says about debt collection. First, be aware that the law allows creditors to take you to court and to force payment on outstanding accounts. Through this effort, the court could agree to place a lien on your property, garnish your wages or take other action to force payment. However, the statute of limitations for credit card debt in Hawaii is six years. This means that after six years has passed since you first became delinquent on your account, your creditors can no longer sue you in court. Furthermore, there are additional protection laws in place in Hawaii. For example, debt collectors in this state cannot entice the individual to file for bankruptcy and cannot lure the individual to pay the debt with the promise of receiving an item of value. Furthermore, the debtor does not have to pay collection fees, and the maximum interest rate that a debt collector may charge on a collection account is ten percent.

Debt is a serious problem for many individuals in Hawaii. Each person, however, has their own debt situation that must be carefully reviewed before you decide how to proceed. Debt settlement is ideal for those who have already fallen behind in making monthly payments and who have a damaged credit rating. If you believe that this option will work well for you, you can reach out to a debt negotiator for assistance with the settlement process. With the right debt relief strategy in place, you may be able to overcome your current financial issues.