Looking for Professional Alabama Debt Relief?
Pacific Debt is Accredited
by the Better Business Bureau with an A+ Rating
US News and World Reports ranked Pacific Debt as one of “The Best Debt Settlement Companies of 2019”
A Top 10 Rated Company by TopTenReviews.com, ConsumersAdvocate.com and Top10debtconsolidation.com
Pacific Debt has helped thousands of people reduce their debt since 2002.
See What Our Customers Are Saying
We felt good about our decision to work with Pacific. Thank you for helping us know we can climb out of a difficult position.
Alexander City, Alabama / Provided by BestCompany
Eva was very nice and knowledgeable. She walked me step by step through the program and put any concerns I had at ease.
Scottsboro, Alabama / Provided by BestCompany
Chris was very knowledgeable & professional when talking to me and answered all of my questions.
Montgomery, Alabama / Provided by BestCompany
Since 2002, we’ve settled over $250 million in debt
for our customers
Contact us to hear all your options
Get Your FREE
Savings Estimate Today!
Click To See Your Savings
Are Debt Consolidation Loans Costing You More Than You Expect?
Debt consolidation loans are promoted as offering people a positive way to reduce debt
and save money at the same time.
Your old credit cards and personal loans are closed,
so you only have one easy monthly repayment to think about for your new consolidation loan.
For many people,
the convenience of only having one loan payment each month is welcomed.
You’re also less likely to be past due with your accounts with a single monthly payment
than you would
with multiple due dates to remember each month.
On the surface, debt consolidation loans can seem like a great idea.
they can be a good option for many people,
especially if you have excellent credit and obtain a low-interest rate.
You can take advantage of paying less interest on your debt balances each month.
Unfortunately, there are times when some debt consolidation loans could put you in a worse position than you were in the beginning.
If you’re not careful,
it could end up costing you more to pay off your debt than if you’d done nothing at all.
The key to choosing the right option for your situation
is to understand the type of consolidation loan you’re getting.
It’s also a good idea to work through some comparison calculations to be sure you’re not paying more than you need to.
Secured versus Unsecured Debt
An unsecured loan doesn’t make use any of your assets as collateral for your debt.
For example, a credit card is unsecured,
as you have access to credit without using your car or your home as security collateral.
In the event that you can’t make your repayments,
the lender can’t repossess your assets to repay your debt.
It’s also worth noting that some unsecured consolidation loans can come with interest rates in excess of 20%.
secured loans require that you use an asset as collateral security for your debt.
Your creditors also have access to your assets
in the event of a default.
Secured loans are usually offered at a lower interest rate than their unsecured counterparts,
making them seem more appealing.
the really cheap interest rates are reserved for customers with excellent credit.
If your credit score is impaired you may find you’re paying a much higher interest rate than you expected,
even with a secured loan.
Comparing Your Options
The easiest way to know whether a debt consolidation loan is right
for your individual financial situation is to compare the total costs.
There are plenty of good loan comparison calculators available online
that let you input your debt balances,
interest rates and any other associated fees you’re charged.
For example, let’s assume you have a total of $22,000 in credit card balances,
store cards, student loans and personal loans you want to consolidate.
Your current minimum monthly payments add up to $516.
keep in mind that you’re only paying the minimum amounts due.
Now let’s look at what happens if you
apply for an unsecured debt consolidation loan.
If the lender charges you 17% interest over a loan term of 5 years,
your repayments will be $547 per month.
You end up paying more money out of your pocket
each month just to cover your repayments.
However, each payment you make actively reduces your debt levels,
so you’ll be debt free in 5 years.
If you’re already struggling to repay your debt balances,
paying more money each month could put a drain on your budget.
Of course, there’s also the total cost to consider.
At repayments of $547 per month over a term of 5 years,
the total amount you’ll repay to the lender is $32,805.
That’s $10,205 more than the original amount you borrowed.
Another alternative is to consider a debt settlement arrangement.
Many banks, financial institutions, and lenders will happily enter a settlement agreement for a reduced debt balance
in the hopes of getting some of their money back from you.
Pacific Debt has helped thousands of people reduce their debt.
we’ve settled over $200 million in debt for our clients.
Get Your Free Savings Estimate
Since it was an intake assessment, I cannot rate the company overall. I can say, however, this initial contact was excellent. Julius was personable and made our experience pleasant and informative. We felt good about our decision to work with Pacific. Thank you for helping us know we can climb out of a difficult position!
I’m new to the program, but I do believe its the answer to my debt problems. Chris was very knowledgeable & professional when talking to me and answered all of my questions. I’m looking forward to working with this company to become debt free!
We can help Alabama residents throughout the state, including Birmingham, Montgomery, and other cities.
We can help you and your family with relief from debt in the state of Alabama, or even nationwide.
State of Alabama
Alabama is home to the Gulf shore to the foothills of the Appalachians. Forestry and agriculture were the backbones of the state’s economy, but recent years have seen increases in aerospace, healthcare, banking, and automobile manufacturing. Alabama is ranked #24 for population and #27 for population density.
As of 2018, over 10 million people called Alabama home. Birmingham is the largest city in Alabama.
The median state income is $46,257. As of 2018, the minimum wage is $7.25 per hour. Unfortunately, 24.3% of Alabamian children under 18 live in poverty. For residents overall, 17.1% of all people in Alabama live under the poverty level.
Median state income: $46,257
Minimum wage: $7.25/hour
Children in poverty: 24.3%
People in poverty: 17.1%
Is Alabama a Community Property State?
Unfortunately, Alabama is not a community property state. Therefore your assets are not seen as equally owned by you and your spouse. Currently, there are only 10 states that are community property states. In the state of Alabama, the judge will decide which assets are shared by you and your spouse, and what the equity is for each.
More than half (70%) of Alabamians hold a mortgage. The median home price in Alabama is $126,800 (2018). Of course, that median price depends on the location with some areas being much higher.
Homeowner rate: 70%
Median home price: $126,800
Alabama’s current unemployment rate is 3.8%. However, the underemployment rate is 10.4%. Underemployment is the percentage of civilian workers who are unemployed, employed part-time or are not seeking employment.
If this is you, we can help. Pacific Debt offers Alabama debt relief solutions tailored to your unique situation and budget. Our certified counselors help you work up a budget and explain your options.
Unemployment: 3.8% (2018)
Underemployment: 10.4% (2017)
Alabamians carry a lot of debt. The average credit card debt is $7,105 (2018). The average student loan debt is $31,257. When you add all that debt on top of the cost of homes (rental or owned), versus the median income, it is very easy for Alabamians to get into debt.
Avg credit card debt: $7,105 (2018)
Avg mortgage debt: $140,963 (2017)
Avg student loan debt: $31,257 (2017)
Alabama Statute of Limitations
Alabama’s statute of limitations lays out maximum time periods that debt collectors can take action against a delinquent debt. These statutes of limitations begin on the date that your debt goes delinquent.
For debts taken out in Alabama, the following are the statutes of limitations for different types of debt.
Oral agreements: 6 years
Written contracts: 6-10 years
Promissory notes: 6 years
Credit cards and other revolving loans: 3-6 years
Alabama Debt Relief and Debt Consolidation
If you have more debt than you can pay off, Pacific Debt can help you consolidate your debt and learn to live debt free. Since 2002, we’ve settled over $200 million in debt for thousands of clients. We are a nationally top ranked debt relief company located in San Diego.
We will help you work through our proven and comprehensive debt relief program. Your certified debt relief counselor will review all your options. If debt settlement is right for you, we move forward with our debt consolidation program and work to save you money. Pacific Debt can help with most unsecured debt like credit cards, personal loans, medical bills, and repossessions.
It is not an easy process and it won’t happen overnight, but you can do it. Pacific Debt will be there every step of the way to help.
Alabamians are protected against unscrupulous debt collectors. The federal Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive or harassing bill collection practices. In addition, the Alabama Fair Debt Collection Practices Act (AFDCPA) adds protections against more types of collectors and actions. If you are a victim of any of these actions, you may take legal action against them.
Overall, debt collectors can NOT:
Charges more than 10% interest
Garnish more than 25% of wages
Use/threaten physical force or criminal tactics to harm you, your property, or your reputation
Accusing you of committing a crime for not paying the debt
Make/threaten to make defamatory statements to someone else
Threaten arrest, to seize assets, or garnish wages unless actually planning to take such action
Use obscene or profane language
Cause you to spend money you wouldn’t otherwise have spent (ie long-distance telephone calls)
Call you repeatedly or let your phone ring repeatedly
Contact your employer, except to verify employment or health insurance status, garnish wages or locate you
Reveal information about debt to anyone except your spouse or your parents if a minor.
Publicly publish your name for failing to pay
Send a postcard or letter with revealing information on the envelope
Claim to be someone other than a debt collector, including a governmental official
Use stationery that appears to be from a law firm
Charge you collection or attorney’s fees unless legally allowable
Threaten to report you to a credit reporting agency if they have no intention of doing so
Send a letter claiming to come from a claim, credit, audit, or legal department unless it actually is
Debt collectors must:
Disclose caller identification
May contact your family to locate you
Must serve you with notice of a lawsuit if suing you
Alabama Bankruptcy Court Information
Bankruptcy is a legal action that can erase most of your debt as well as your credit history. It is not an action to take lightly. If you do, you must follow the following steps in Alabama.
Persons filing for bankruptcy must:
Complete credit counseling within six months before filing for bankruptcy.
Complete a financial management instructional course after filing bankruptcy.
Complete a Bankruptcy Act Means Test to determine if you are eligible for a Chapter 7 or 13 bankruptcy
Itemize current income sources; major financial transactions; monthly living expenses; debts (secured and unsecured); and property (all assets and possessions, not just real estate).
Collect last 2 years of tax returns, deeds to real estate you own, car titles, and loan documents
File for bankruptcy
Chapter 7 bankruptcy fee is $306
Chapter 13 bankruptcy fee is $281
Meet with court assigned bankruptcy trustee
Attend a Meeting of Creditors
Confirm plan if filing for Chapter 13 bankruptcy
DISCLAIMER: We are not lawyers and are not giving legal advice. Before filing bankruptcy, talk to a lawyer in your state.