If you reside in California and you're having debt problems, then California debt consolidation programs can help you. There are a lot of California debt consolidation companies that offer a number of relief options to help you when you're in financial distress.
What are the types of California debt consolidation?
There are 2 types of California consolidation - CA debt consolidation program and California consolidation loan. To find out if at all a consolidation program would suit your purpose, go for a no-obligation free counseling with a consolidation company. Just explore the options before you choose the right one for you.
CA debt consolidation program:
Under this program, you can get help from CA consolidation companies who'll negotiate with your creditors in order to lower your interest rates and monthly payments. Instead of keeping track of multiple payments, you combine your bills into a single monthly payment and send it to your consolidation company. The company then distributes the payments amongst your creditors.
California debt consolidation loan:
It's an option using which one can pay back his/her bills using a single unsecured California consolidation loan. All you need to do is, pay off the consolidation loan at low interest rate and in monthly installments. Use the calculator given below and find out when you can repay your bills by taking advantage of consolidation loan.
Apart from unsecured consolidation loans, there are also secured California debt consolidation loans like the home equity loans that can help you pay off multiple bills together.
Avg credit card debt: $5,460
Delinquency rate on (credit card): 1.42%
Mortgage debt: $331,561
Delinquency rate on (Mortgage): 1.42%
Auto loan debt: $18,143
Delinquency rate on (Auto loan): 0.88%
Unsecured personal loan debt: $10,117
Delinquency rate on
(Unsecured personal loan): 3.55%
Do San Diego consolidation companies offer similar programs?
No matter what city you live in - whether it's San Diego, Fresno, Sacramento, Long Beach, San Francisco, Los Angeles, or San Jose, you'll find that most companies offer the same basic programs as CA debt consolidation companies so as to help you consolidate bills.
Can San Jose consolidation companies help to deal with CAs?
Companies helping you with debt consolidation in San Jose assist you in dealing with collection agencies. The consultant at the consolidation company will negotiate with the collection agencies so that they lower your interest rates and offer you an affordable payment plan. San Jose consolidation companies can work with your creditors and collection agencies and have your bills consolidated into a single monthly payment.
Can California debt settlement help if I can't consolidate my bills?
If you can't afford to consolidate your bills and manage the monthly payments under a consolidation program, you should try a California debt settlement program. These programs help you reduce your outstanding balance. In most cases, you can settle your bills for much less than the outstanding amount when you're under a CA debt settlement program.
Are Los Angeles debt settlement programs available?
Los Angeles debt settlement programs are available with settlement companies operating in the city. These programs work in a similar way as CA debt settlement programs. The upfront fees charged by Los Angeles debt settlement companies are capped to a certain limit as allowed by the State of California. In case you don't want to pay a third party for settling your bills, you can do it on your own. Just check out the steps to settle your bills yourself.
Whether you consolidate or settle your bills, make sure you have the self-discipline to avoid unnecessary expenses and save enough to make on-time payments on your bills. It'll save you from getting off the track and help you eliminate your bills faster.
Can California debt consolidation help you to deal with payday loans?
Payday loans (also known as cash advances and deferred deposits) are legal in California. The maximum loan amount is $300 and the maximum APR is 460% for a 2-week loan. This means if you borrow $300, then you have to pay $1380 for it within two weeks.
Usually, people borrow payday loans because they can’t afford to fulfill their short-term financial needs. The problem is if they can’t afford to pay $300, then how would they pay $1380 and that too within 2 weeks in California?
This is a major problem. On top of that, California state law prohibits rollovers. This implies that lenders can’t give you a fresh loan to repay your existing debt even if you have not crossed the maximum permissible limit. Let’s say, you have borrowed only $100 but failed to pay it off. Unlike other states, lenders in California can’t give you another $200 to pay off your existing debt.
Needless to say, most borrowers get into payday loan debt due to these reasons.
A debt consolidation program can help you deal with payday loans in California. It helps to lower the astounding interest rate on your loan and set up a budget-friendly repayment plan. The consolidation company works out a deal where you have to pay much less than what you’re doing now.
2 Payday loan consolidation tips for California residents
Revoke ACH authorization:
After you enter the consolidation program, make sure you cancel the ACH authorization of the payday loan company so that they can’t make automatic withdrawals. You can check out the ACH revocation regulations here.
Check out the CA pdl laws:
How much can you borrow from a lender and at what interest rate? Is the lender legal in your state? What if the lender is not legal in California or violating the state laws? What can you do in that situation? The state payday loan laws give you all the information. Read all the laws carefully because that will give you the perfect idea to deal with lenders - both legal and illegal. For instance, if you have borrowed from an illegal lender, then you don’t need to pay interest rates. Did you know this fact earlier? The lenders will never tell you this law.
Other ways to deal with payday loans in California
Request for an extension:
You can request the lender to give you more time for paying off the loan. Keep it in mind that lenders can’t charge an extra fee for the extension of time.
Settle your loans
If a consolidation program doesn’t help you, then the next best option is to settle the debt. You can negotiate with the lenders directly provided you have good negotiation skills. Otherwise, you can leave the matter in the hands of debt negotiators who are an expert in settling payday loans.
If you need legal protection or assistance, then contact the California Department of Business Oversight. Call at their TOLL-FREE number - 1-866-275-2677 or visit the website www.dbo.ca.gov.
What are the benefits of CA debt consolidation?
With the help of a consolidation program, you can get the following benefits:
- Reduced interest rates and monthly payments
- Stop receiving collection calls
- No dealing with multiple creditors
- No need to file bankruptcy
How much
you can save
in California
FAQ on California consolidation and settlement
However, if your income isn't enough for you to make regular payments on all accounts, then it may be a good idea to go for a CA settlement program wherein your outstanding balance can be reduced.
Attorney General's Office
California Department of Justice
Attn: Public Inquiry Unit
P.O Box 944255
Sacramento, CA 94244-2550
Real life scenarios
Solution: If your main problem is to manage your multiple payments, you can opt for a debt consolidation loan in California. By taking out such an easy and low-interest loan, you can repay all your existing unsecured debts such as your personal loans and credit cards. Then, all you have to do is make a single payment every month to repay the consolidation loan on time.
Solution: Before answering your query about whether or not you can repay your auto loans through CA debt consolidation loans, check out with your lender if there's any prepayment penalty on your auto loan. Even if there is, you may negotiate to reduce it if you make the necessary payments and repay the loan at once.
Well, you can take out a debt consolidation loan in California and repay the existing balance on your auto loan. Then, you'll have to repay the unsecured consolidation loan through regular monthly payments.
However, before doing so, check out whether or not you're getting a relatively lower interest debt consolidation loan in California. It is because usually the interest rate on a secured loan (like auto loan) is lower than an unsecured loan.
If your credit score is good, you'll be able to take out such an easy loan with suitable terms and conditions.
When you obtain such a loan, you can include your personal loan as well. That means, calculate how much you've to pay for your auto loan and personal loan. And, take out a loan with which you can repay both the existing loans.
Doing so, you'll be able to replace your loans with a new one, which is more manageable.
Solution: In such a situation, you can opt for debt settlement in California. If you can't repay the debts in full, since you have already defaulted on one credit card, you can opt for debt settlement. It is a debt relief option through which you can get rid of your debts fast by paying less than what you owe. However, your credit score may reduce a bit, and you'll have to pay a tax on the forgiven amount.
To settle your credit card debt in California, you can approach a debt settlement firm or negotiate with your creditors and collection agency on your own. If you opt for a settlement program, then you can settle your debts just by paying a monthly amount to the settlement company every month. To do so, check out reviews about settlement companies or law firms in California, talk to them, and choose a suitable company to settle your debts.