California CA Debt Consolidation
Do you live in California? Do you need to consolidate debt? You aren’t alone. In addition to the Golden State’s great beaches, parks, and tourist attractions, residents of California have been racking up credit card debt, personal loans, and other unsecured debts at alarming speeds. Can you believe that Californians have over $116 billion in credit card debt?
California is arguably the most famous American state. Unfortunately, it is also becoming very well known for having a statewide personal loan and credit card debt crisis. Having too much debt in California is almost as common as eating turkey on Thanksgiving.
Millions of people travel to California. Despite being home to the Hollywood elite and Silicon Valley’s tech-zillionaires, Californians seem to keep getting deeper in debt. Whatever city you may live in – Los Angeles, San Diego, San Jose, San Francisco or anywhere in between – a California debt solution is available to you.
Here are some California debt statistics that you may not be aware of:
The average California household has $9,472 in credit card debt of which $558 was paid down this last year.
The total credit card debt of all California residents is over $116 billion of which $7.2 billion was paid down last year.
California Debt Consolidation Options
California Debt Consolidation Loans
Taking out a loan in California to consolidate your debt is another popular option but is debt consolidation a good idea? It can reduce your overall monthly payment and provide some short term relief. That’s the good news. The bad news is some of these loans have longer terms and it could mean that you will pay even more interest in the long run.
When you take out a debt consolidation loan in California, it can cause a temporary dip in your credit score. The lender will run what is called a “hard credit inquiry” which can lower your score by a few points. On the other hand, if you improve your financial budgeting and make all your payments on time, the result will most likely be a positive affect on your credit score.
California Debt Settlement
“Debt Settlement” has become an increasingly popular option in California.
Credit Associates, our top-rated debt resolution company in California, negotiates with creditors on your behalf to reduce the total amount you owe, have the creditor take a loss on the remaining debt balance, and agree to a new deal with creditors to make monthly payments over a 2 to 3 year period.
A debt settlement program in California will negatively affect your credit score but it will allow you avoid bankruptcy and your credit score will likely improve once you complete the program.
Your days of being taken advantage of in the Golden State will be over.
Some Interesting California Facts:
The average household income in California is $71,805 (national average is $60,336)
41% of the population is educated in California.
The GDP of California is almost $2.8 trillion.
The population of California is 39,536,653.
California Debt Management
Debt management is a term that is also tossed around on the internet when searching for ways to get out of debt in California. This strategy is based on lowering the interest rate of the credit cards to make your payments more manageable.
It is a widespread belief that debt management companies in California, otherwise known as consumer credit counseling agencies, are non-profit organizations.
If you choose to work with a CA debt management company, you need to be sure that (1) there are no hidden fees; (2) the debt counselors are certified; (3) educational materials are free of charge; (4) they offer budgeting support; and (5) they are a member of a national credit counseling organization.
Paying Off Debt In California
If your debt is manageable, you can pay off your debts in monthly installments and manage the entire process on your own and from your very own home in California. You should keep in mind that if you can only afford to make the minimum monthly payment, you may be in for a long ride. A $2,000 credit card balance that carries an 18% annual rate can take just over 30 YEARS to pay off in you only make the 2% minimum monthly payment every month.
Be sure to put as much extra money as you possibly could towards the accounts with the highest interest rate as you pay off each credit card.
Did you know that California…
is the most heavily populated state in the America.
California is one of the country’s wealthiest and socially influential states.
California’s citizens are heavily taxed at 9.3% (the national average is 4.6%)
Filing Bankruptcy in California
Filing bankruptcy in California is generally the last resort. If you are unable to pay your debts and you don’t see any other way out, you should contact a bankruptcy professional to get legal advice.
You should keep in mind that in a California bankruptcy, you are at risk of losing all your assets and possessions. A bankruptcy will negatively impact your credit score for the long term and it is up to the court to decide if you qualify for a Chapter 7 (entire debt wiped out) or a Chapter 13 (a percentage of the debt will be wiped out).
A Chapter 7 is the most popular method of bankrutpcy in California. All your debt is wiped out with the exception of tax debts, domestic support obligations, and federal student loan debt.
A Chapter 13 requires you to pay back a percentage of your debts over time. It takes longer and costs more but you have a greater chance of keeping your home with an approved payment plan.