Between student loans, the rising cost of housing, and everyday expenses, staying out of debt in the United States is nearly impossible. California is one of the country’s most expensive states, making residents in this region particularly reliant on bank loans and other forms of credit. California residents are subject to high taxes, costly medical care, and premium consumer goods. It should not be surprising that the average person relies on borrowed funds to support their everyday life.

Thankfully, various debt relief programs are currently available in California. These initiatives are designed to assist those struggling to make loan payments and cover interest charges. From state programs to the renowned National Debt Relief organization – California residents can now reduce their repayment obligations and become debt free faster.

Suppose you reside in California and are struggling to pay down your debts. In that case, it is essential to do your research and determine the best course of action according to your specific financial circumstances. Below we have provided everything you need to know about California debt relief.

California Debt Relief: Everything You Need to Know

California Debt Relief: What Are Your Options?

First, let’s go over your options for debt relief in California. Credit counseling agencies across the United States offer Debt Management Plans, which involve negotiating with creditors to reduce interest rates and monthly payments. Organizations of this kind negotiate with lenders on the client’s behalf and take on the total debt so that clients can pay a reduced monthly fee to the agency rather than paying directly to creditors. An example is National Debt Relief, which is among the country’s most established credit counseling agencies and has saved Americans billions of dollars in debt repayment.

Debt settlement is another form of debt relief in which representatives negotiate with creditors, requesting a reduction in the total amount of debt. Unlike credit counseling agencies, which are typically not for profit, debt settlement companies usually charge a fee in exchange for their services and can not guarantee a successful outcome.

Another option, in extreme circumstances, is to file for bankruptcy. This legal process eliminates debt by liquidating assets or structuring a repayment plan. Bankruptcy laws in California protect borrowers; however, this process can be severely detrimental to the client’s credit score.

California Debt Relief: What California State Programs Are Offered?

Those seeking debt relief in California have access to various state programs targeted toward the specific driving factors that lead Americans into debt. For example, owning real estate in California has become largely inaccessible to the average earner. For this reason, a program called Keep Your Home California assists homeowners struggling to cover their mortgage payments. This program helps to reduce the principal, reinstate the borrower’s mortgage, and provide unemployment benefits as needed.

Another debt relief program available exclusively in California is the California Earned Income Tax Credit. This benefit aims to assist low-income households with debt repayment and other essential expenses.

The cost of utilities is another factor that significantly impacts the ability of California residents to pay down their debts. The California Alternate Rates for Energy program was established in response to this problem. This program helps prevent residents of California from going into further debt by reducing their monthly bills.

Finally, residents pursuing post-secondary education in California have access to California’s Student Loan Borrower Bill of Rights. This state law protects students from going into extreme debt by educating them on lending practices and assisting with legal disputes pertaining to their student loans.

Overcome Debt in California — Aerial View of Lake Tahoe Mountains and Turquoise Blue Water, California, USA

California Debt Relief: National Debt Relief & How they Can Help

As previously mentioned, National Debt Relief is one of the most reputable credit counseling agencies in the United States. Borrowers struggling to pay down their debts can contact this organization for relief from almost any type of unsecured debt. This category includes credit cards, lines of credit, medical bills, personal loans, repossessions, most business debts, and select student debts. For over a decade, National Debt Relief has been assisting Americans with their finances by negotiating with creditors. The organization helps make repaying debt more manageable by persuading lenders to lower their interest rates and total payment expectations.

National Debt Relief is an industry leader, providing compassionate customer service, affordable payment plans, free initial consultations, and support throughout the debt repayment process. When you work with the team at National Debt Relief, your unsecured debts are transferred over, so that monthly payments are made directly to the organization rather than to your various creditors. A National Debt Relief representative will help you to reduce these monthly payments and recommend a payment schedule within your means. Payment schedules typically take between 24 and 48 months to complete. Once your newly agreed-upon balance is paid down to zero, the lump sum will then be transferred over to your creditors, making you officially debt free.

California Debt Relief: Do You Need Help with Student Debt Relief?

Students in California have access to a range of debt relief programs that can reduce the burden of tuition fees and other associated expenses after graduation. For example, depending on your field of study, you may be eligible for a student loan forgiveness program. These programs cover a portion of the cost of education for those entering specific professions such as education, public service, or healthcare.

Another option is to defer student loan payments when you are not earning enough money to meet monthly obligations. While this can be useful in the short term, students can expect additional interest to accrue during their deference period, which is why we recommend exploring other options.

If you have taken out a private student loan, you should be able to refinance or consolidate the borrowed funds just as you would for any other unsecured bank loan. National Debt Relief is also available to help reduce private student loan repayments and help you become debt free in just two years or less.