California Debt Relief: Debt Settlement and Consolidation

California can be an expensive state to live in because it has the third-highest cost of living behind Hawaii and Alaska. Making ends meet can be hard, possibly forcing you to rely on credit cards. In California, people carry more credit cards (5.9) and more debt on their cards ($6729) than the average American.

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Housing and rent costs are also much higher than in other states. With high prices, debt settlement and consolidation may be necessary to get your feet back on the ground. California debt relief can offer you several options such as reducing interest rates on credit cards, make monthly payments more affordable, and avoid bankruptcy with several assistance plans.

We have outlined the exact options to you below.

Debt Relief Options

Debt Settlement

This idea is risky and will affect your credit score. It involves discontinuing payments to your creditors until the debt collectors contact a company for settlement. You will need to pay compiled interest and possibly attorney’s fees.

This option is best if you have some savings you can use to pay down the debt immediately. It can also be done if your debt is already in collections.

Debt Consolidation

Consolidating means taking out a personal loan and paying down all the debt you may have on credit cards. Then you will just have one easy payment every month with lower interest rates. You will need a good credit score to get a good interest rate.

Debt Management

Debt management can combine your debt into one monthly payment plan. The payment will have a lower interest rate. It doesn’t include a loan so you can be approved even with a low credit score. Your score will also improve as you make all your payments on time.

Consumer Debt Counselors

The average American has about $52,940 worth of consumer debt including auto loans, credit card debt, student loan debt, home equity lines of credit, and mortgage loans. Debt tends to peak at around age 40, but some people’s is earlier if they have higher than usual amounts of student debt.

The average California resident has about $73,350 in debt which is much higher than the national average.

Consumer Debt in California

The average credit card debt is $3,230 in California and nationwide it is $2,780. This shows that California residents have more credit card debt than other states. The ages with the highest credit card debt are ages 50-59.

Credit card debt can be among the hardest debt to pay off because many credit cards have very high-interest rates. Credit card debt is also easy to keep racking up because each month you make a payment, you have more of a balance to spend.

Credit card debt can often be refinanced or be paid with a personal loan. Personal loan payments usually have lower interest rates and can help you pay off your debt much quicker.

Credit Card Debt in California

In 2018, California had the 30th highest average card debt on credit cards at $7,100. Per capita, the state has $5,480 in credit card debt while the national average is $2,780. You can see that California residents have much higher credit card debt than the average American.

Statute Of Limitations for California Credit Card Debt

In California, there is a four-year statute of limitations. This does not include debt with an oral contract which has a statute of limitations for two years. So, after the debt is four years old, a debt lender is not allowed to request collection from you.

Four years is much shorter than other states as some even have a statute of limitations that is 20 years or more.

Mortgage Debt in California

Mortgage debt is higher in California than in other states because housing is less affordable. Most residents have to take out large mortgage loans to afford a home that sells for much lower in other states like Ohio or Georgia.

The average mortgage debt in California is $58,590. States like Arkansas only have a mortgage debt of around $20,010. It is easy to see why mortgage debt in California is so high and could need some debt settlement relief.

Student Loan Debt in California

Student loan debt is the second-highest type of debt in The United States. The average amount is $5,730 and in California, it is $4,640. California residents have slightly lower student loan debt than the average American.

Auto Debt

In California, the average auto loan debt is $4,710. The national average is about $5,000. California’s auto debt is close to the average amount.

FAQ's About California Debt Relief:

How does a debt relief program affect your credit?

This depends on the type of program you choose. Debt settlement will affect your credit score the most. Some people’s credit score completely tanks when they take the settlement approach because it involves letting all your debt go into collection. You will need to dip into your savings and make a large payment on it as soon as possible to get your credit back up.

Credit card refinancing and personal loans will impact your score more minimally. As long as you make payment on time for the duration of the loan, your credit score will bounce up quickly.

Is there really a debt relief program for me?

It’s important you don’t allow your debt to get out of control. Debt settlement and personal loans are easier when your debt is lower and paying it off will take less time. Clearing debt will allow you to easily set aside money every month to pay off your credit cards or mortgage easier.

Then you will be able to use the rest of your income to start rebuilding your wealth rather than using the majority of your money to pay off overwhelming debt. Debt relief programs come in all shapes and sizes so there is always an option for everyone.

Get Debt Relief in California Today

TurboDebt offers a debt relief option for everyone because they know that debt is not the same for everyone. They can help you take control of your debt and start getting control back over your finances.

How Much Do You Owe?

Select your debt amount:

How Much Do You Owe?

Select your debt amount:

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