Debt Consolidation California
What You Need To Know About Debt Consolidation In California
California holds claim to being the most populated state in the country with over 40 million residents. The state is also the third largest by area, behind only Texas and Alaska. Unfortunately, California is also fourth in the nation when it comes to average household debt.
Clocking in just shy of $10,500 per household, it is no wonder why more and more families are seeking debt consolidation in California. While there are some states, such as Ohio, that carry half the debt load as Californians, seeking solutions on ways to become debt-free is truly a national topic of conversation.
California Debt Laws
As you consider your options for debt management, it is important to understand applicable debt laws and the general workings of debt consolidation. California follows all applicable federal laws related to debt. The state then goes further and expands consumer protections in two ways.
First, California imposes a four-year statute of limitations as to how long creditors can continue pursuing outstanding balances. Although walking away from debt after a mere 48 months sounds attractive, doing so can cause irreparable harm to your credit that will likely follow you for a long time.
Second, the state has strict laws effectively eliminating the harassment and misleading by lenders towards debtors. Unlike the federal law that applies only to hired debt collectors, California tightens the belt on original creditors. This includes credit card companies.
The terms of your credit card agreement are binding. This means any payments you miss on your credit card put you in default. Initially, credit card companies may simply impose a late payment fee or increase your interest rates. However, miss more than one or two payments and you are likely to begin receiving phone calls and letters seeking payment.
As a credit card holder, you are legally obligated to pay back any money charged to the card. If you cannot afford your monthly payments, after a certain amount of time has passed, credit card companies may sue for the outstanding debt or sell your debt to a collection agency who may attempt a lawsuit. Neither situation benefits you as a consumer.
Fortunately, lawsuits take a tremendous amount of time and resources to pursue. Suing debt holders is the last action credit card companies want to take. This provides time and opportunity for credit card holders to seek out solutions including debt consolidation. In California, there are a couple of paths to take when looking to wipe out credit card debt.
One approach to reigning in debt is through debt consolidation programs. California is a state which has several organizations offering professional services for debt consolidation. California allows those in debt to utilize such organizations to regain control of their financial situation.
Debt consolidation is a generic term used to describe a debt relief plan which combines all your debt into a single, monthly payment. Various programs exist to help you find a plan that meets your long-term goals with your monthly budget. By providing lower interest rates and fees, debt consolidation programs allow you to pay more toward the principal balance, reducing the time it takes to pay off your debt.
UmbrellaDEBT representatives have decades of experience and have helped tens of thousands of individuals regain financial independence from debt. Contacting one of our professional debt counselors is confidential. The first step is to summarize your outstanding debt. Once a monthly budget is established, your counselor will explain the many different options available to you.
Our programs have helped thousands of faithful families become debt free. By working with our professionally trained staff, we may help stop the collection calls, reduce or eliminate interest, and consolidate your debt into a single, affordable monthly payment. If you are ready to take the first step on the path toward a debt-free future, contact us today or apply online.