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You are not the only California resident struggling to keep your card balances manageable. As a per-capita average, consumers in California have $7200 on their credit cards. There are situations when soliciting the expertise of a debt specialist is your best option. We’ll tell you what you need to know about consolidation, counseling, and settlement. After you have explored the possibilities, we can help you find a debt specialist to guide you through the process.

Debt Consolidation in California

The term debt consolidation spans several different debt relief approaches, which are all geared toward consolidating a variety of debts into just one payment each month. This could involve a loan or a debt management plan (DMP), in which a credit counselor works in concert with your creditors to develop a repayment program. You can consolidate several types of debts, including those stemming from credit cards, student loans, and cash advances. Don’t delay. See how much a debt consolidation service could save you.

Debt Consolidation in California CA

California Credit Counseling

Credit counselors work with your creditors to get you more desirable rates and terms. The process doesn’t include a loan, your credit score won’t usually drop, and the letters from collections agencies should be minimal. What’s even better, you should have only a single major payment to manage–a sum that fits your budget. By signing up with a credit counseling firm, you may be able to:

  • Combine Your Monthly Repayment
  • Lower Your APR’s
  • Eliminate Creditor Harassment
  • Develop Superior Money Management Skills

If you’re in severe debt, your credit counselor could very well have you participate in a debt management program. A debt management plan is a type of debt consolidation, as your credit card, loan, and other debt payments is combined into a single sum, but no loan is required. Your credit counseling specialist will work with your creditors personally.

Debt Settlement in California

Settling what you owe is best entrusted to a licensed debt settlement service. Debt settlement involves paying off some of what you owe, but not all of it. Creditors in California are receptive to settlement deals because if a person in debt files for personal bankruptcy, they won’t get anything. Pumped up about debt settlement? Hold on. There are a few things you need to understand. For example, debt negotiation can harm your FICO rating, as your debt won’t be paid in full. Additionally, your collection calls might not decrease appreciably, as they do if you simply consolidate your credit card debts. It may take up to half a year for anything to happen, and during that time your debts will keep mounting.

Comparison of Debt Consolidation to Debt Settlement

Do you need to decide between consolidating and settling your debt? Many debt management programs give you reduced interest rates on your credit cards. However, there is zero lowering of present debt is involved. You pay off your creditors on a monthly basis under credit counseling. So your credit score is not damaged as drastically as it will be after debt negotiations. On the other hand, consumer credit counseling ordinarily takes more time and eventually you’ll pay back your debt in full.

California CA Debt Relief