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Americans all across the country struggle to pay back money that they’ve borrowed. Between credit cards, medical bills, and personal loans, the majority of American adults have debt or some kind. Residents of Nebraska are not any different.

For the most park, Nebraska resident are good about the money they borrow. With an average credit score over 720, Nebraska is one of the best states on average for credit health. Unfortunately, a good credit score also means you’re allowed to borrow more money, making it even easier to get into debt you can’t pay back.

On average, Nebraska residents owe a high amount of credit card debt. At almost $7,000, Nebraska’s average credit card debt is above the national average.

Whether you owe above or below the state average debt, you’re probably looking for a way to pay it off. When you have debts that you’re unable to pay off, it can hold you back from living a financially free life.

Debt relief programs for Nebraska residents can be one of the best ways to get out of debt. However, understanding what debt relief programs apply best to which financial situation will help you determine which program is right for you.

What are Nebraska Debt Relief Programs?

A debt relief program can provide a Nebraska resident with a better avenue for getting out of debt. If you’re struggling to make your minimum monthly payment or your interest rate is preventing you from making a dent in the money you owe, a debt relief program can help you get your debt under control.

There are a few different kinds of debt relief that a Nebraska resident may want to consider. Here are some of the most popular types:

Debt Consolidation:

  • Debt Consolidation: If you’re struggling with a variety of high interest rates, a repayment schedule you’re unable to keep up with, or too many debts to manage, debt consolidation may be the right relief program for you. Through debt consolidation, you’re able to take out a larger loan that covers your small loans. You are then able to focus on repaying that one debt rather than many different smaller debts.

Debt Settlement:

  • Debt Settlement: Debt settlement is beneficial if you’re looking to reduce the amount of money you need to pay in total. Debt relief is best advised for the individuals already missing their minimum monthly payments. Through debt settlement, you and your creditor would come to a new agreement about the money you need to repay.

Debt Refinancing:

  • Debt Refinancing: If you’re only struggling to get one debt under control, debt refinancing may be the best relief program for you. Through refinancing a loan, you can come to new terms with your creditor that you can more easily pay. Refinancing your debt may give you a new interest rate, minimum monthly payment amount or an extended final payment due date.

Each relief program fits best with a different financial situation.

Debt Relief Laws in Nebraska

Debt relief programs are available to Nebraska residents, but before you go and apply for the program you believe fits your situation best, you need to understand Nebraska’s laws surrounding debt collection.

The statute of limitations for debts in Nebraska are 4 years for open accounts and oral agreements and 5 years for written contracts and promissory notes. The statute of limitations begins running when your last payment on the debt becomes delinquent, not when the credit card was opened or the loan was taken out.

If the debt has expired through the statute of limitations, you’re no longer required to pay on it. A debt collector will not be able to acquire money from you to pay towards that particular debt. This means you will not need to to go through a debt relief program.

Debt collection agencies must also comply with the Fair Debt Collection Practices Act, or the FDCPA. Under the FDCPA, debt collectors are not to use threatening, harassing, or unethical practices to obtain money from a debtor. If you believe that a debt collector is not acting within the rules and regulations of the Fair Debt Collection Practices Act, be sure to report them immediately.

A debt relief program can be extremely beneficial if you’re struggling to get out of debt. However, you will want to be sure you’re doing the appropriate research about each debt relief program before you apply for a program. Because each program has its own benefits and drawbacks, you want to ensure you’re selecting the right program for your unique debt repayment situation. Always talk with a debt relief professional about your options before you make a final decision.