Start My Answer

How to Get Debt Relief in Hawaii

Sarah Edwards | June 05, 2024

Sarah Edwards
Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: If you're struggling with debt in Hawaii, SoloSuit can help you find the relief you need.

If you're a resident of Hawaii, you're likely battling high property taxes, rental rates, expensive consumer goods, and consumer debt. Hawaii is currently the most expensive state to live in, with a cost index of 193.3.

Rising inflation and gas prices haven't helped matters, and ordinary citizens are feeling the pinch. Apartment rental rates are up 20% compared to last year, leaving many without adequate housing options.

In addition to soaring costs, the average Hawaiian earns an income of $59,760, which is only slightly above the national average of $58,260. Since the average household in Honolulu has $12,429 in credit card debt, it's no wonder people get caught on a hamster wheel of trying to afford their everyday expenses while battling consumer debt.

Fortunately, there are protections in place for Hawaii residents with consumer debt.

How does the Fair Debt Collections Practice Act (FDCPA) protect Hawaii residents?

The FDCPA was first created to protect consumers from unscrupulous debt collection activities. There are a variety of prohibited activities that debt collectors may not engage in. A few examples include:

  • Publicly listing consumers who allegedly refuse to pay debts
  • Causing a telephone to ring continuously with the intent to annoy or harass
  • Using obscene or profane language during a call
  • Implying that they are an attorney when they are not
  • Using deceptive means to collect on a debt

Other debt collection activities may be illegal as well, especially if they seem abusive or are made in an attempt to harass the consumer.

What protections does the state of Hawaii provide?

Each state has its own statute of limitations laws. These laws prevent debt collection agencies and other creditors from suing alleged debtors after a specific amount of time has passed. Statutes of limitations vary depending on the type of debt held. In Hawaii, the statute of limitations sets out the following time limits:


Hawaii Statute of Limitations
on Debt

Debt Type

Deadline in Years

Written

6

Oral

6

On Account

6

Auto Loan

4

Rent

6

Judgments

10 (court of record), 6 (court not of record)


Source: Findlaw

Once the time limit has passed, the creditor or debt collection agency can no longer pursue action against you in court to collect an overdue debt. However, this does not mean that you no longer owe the debt. The creditor may still contact you via phone or mail to try to collect money from you.

If you respond to their communications and confirm that you owe the debt or send any sort of payment, you reset the statute of limitations. This allows the creditor to open a lawsuit against you again.

How can I obtain debt relief in Hawaii?

If you're currently drowning in debt in Hawaii, you're likely seeking relief that can help you make a new start. There are various options you can consider, including debt consolidation loans, home equity loans, and debt settlement.

How do debt consolidation loans work?

Taking out a debt consolidation loan can be a great option for those with decent credit. Generally, you must have a credit score above 650 to qualify for a debt consolidation loan.

If you qualify, you'll be given a sum of money that you can use to pay off all of your current lenders. In exchange, you'll make a single monthly payment to your debt consolidation lender until the loan is paid off.

Debt consolidation loans often carry lower interest rates than credit cards and other types of consumer loans. This can allow you to reduce the overall amount of interest you would pay to your original lenders and shorten the amount of time to pay off your debt.

For example, if you have five different credit cards with a balance of $5,000 each and an APR of 15%, you could obtain a debt consolidation loan for $25,000 with an interest rate of 6%.

If the minimum payments on your credit cards were $120 per month, $62.50 would have gone to interest, while the remaining $57.50 would have paid the outstanding balance.

Under your new debt consolidation loan, the $600 payment that you made towards credit cards would be applied to your loan, with only $125 paid for interest each month. The remaining $475 would reduce your overall balance. That's a savings of $187.50 in interest charges each month.

How can I use equity in my home to pay off debt?

If you're a homeowner, you may be able to obtain a cash-out refinance loan. This allows you to withdraw a specific amount of equity from your house in order to pay off consumer debts. The terms of your mortgage will then be adjusted, and a new interest rate and time period to pay off your house will apply.

This method is similar to a debt consolidation loan, in that you'll pay off all of your creditors with one payment. However, rather than paying a creditor for a debt consolidation loan, you'll be paying back yourself. Interest rates may vary when using this method, so it's important to compare options before tapping into your home's equity.

How does debt settlement work?

Debt settlement involves negotiating with your lenders for a reduced overall balance owed. You may attempt to do this on your own, or you can work with a debt settlement agency that will manage the process for you.

If you decide to work with a debt settlement agency, you may be able to reduce the amounts you owe to your creditors by as much as 50%. However, the debt settlement agency will charge fees for their services. Typically these vary from 15% to 25% of the overall debt.

Debt settlement programs may last anywhere from 12 months to 48 months, depending on the settlement amount and how much you're able to pay monthly.

Utilize these Hawaii debt relief programs

Hawaii has several programs to help its residents who are struggling with debt. Check out these services to see if you qualify:

  • Hawaii Financial Assistance: provides assistance to needy families with (or expecting) children and provides parents with job preparation, work and support services that enable them to leave the program and become self-sufficient. This is accomplished through strategies implemented in the Pursuit of New Opportunities (PONO) welfare reform program which delivers cash assistance and the First-to-Work (FTW) program which provides employment preparation and support services.
  • Med-Quest: provides eligible low-income adults and children access to health and medical coverage through managed care plans.
  • American Consumer Credit Counseling: a not-for-profit agency that offers free credit and housing counseling, debt advice, and other financial services to individuals and consumers nationwide.

Are you being sued for an old debt in Hawaii?

If a creditor has recently filed legal action against you in an attempt to collect a debt, you need to take action.

The first step to winning a debt lawsuit in Hawaii is to respond to the Summons and Complaint by filing a written Answer. In your Answer, you should follow these three steps and file before the deadline:

  1. Reply to each claim listed in the Complaint
  2. Assert your affirmative defenses
  3. File your Answer with the court and send a copy to the plaintiff

Learn more about these three steps from SoloSuit's CEO, George Simons, in this informational video:

https://www.youtube.com/watch?v=TQAKQ0G2KhE

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James


Get Started


We have answers.
Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.


Ask a Question


>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources

It only takes 15 minutes.
And 50% of our customers' cases have been dismissed in the past.

"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" – Heather


Get Started


Not sued yet?
Use our Debt Validation Letter.

Our Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.


Let's Do It

Contents