The 4 Best Debt Relief Options for Californians

The great state of California is known for its pristine beaches and perfect year-round temperatures. But the Golden State has also become a symbol in America's battle against debt, as many residents struggle more than ever with their finances due to the increasingly high cost of living.

From mortgages to credit card debt, it seems as though everyone is feeling the pinch.

Many have had no choice but to turn to debt relief to ease the burden, but which one is the right debt relief option?

This article will explore the 4 different types of debt relief available to Californians and help you determine which option is best for your situation. So keep reading – your financial future may be dependent on it!

What is California debt relief?

California debt relief is debt reduction through a certified program like debt settlement. The overall goal for any California debt relief program is to reduce the amount you owe and debt collectors and creditors. We have listed the different ways to find California debt relief below.

The California debt statistics can be seen as fairly grim. It is a very expensive place to live, and the minimum wage does not match the expenses. Many California residents suffer from heavy credit card debt.

Despite assistance programs like homelessness prevention programs and assistance from local public housing authorities, the average California home-owner has more than $5,000 in auto loans, $4,000 in average credit card debt, and more than $401,954 in mortgage debt.

The different types of California debt relief options available

There are four different ways to find California debt relief. Let's take a look at each of these debt relief options in detail below.

1) Credit Counseling or Debt Counseling Option

In credit counseling, a credit counselor helps you learn proper money management including developing a budget, helping you understand your credit scores, and setting up a debt management plan.

A debt management program may include rolling all bills into one payment, taking out a loan to pay off debt, or negotiating with creditors to decrease your interest payment.

Credit counseling is probably the best for people just beginning to get into debt or who can afford to make monthly payments.

Look for a nonprofit credit counseling agency with certified credit counselors.

Click here to learn more about Credit Counseling and the credit counseling agency.

2) Debt Consolidation Option

In debt consolidation, all bills are rolled into one lump sum. The debtor then finds a debt consolidation loan, often a home equity loan or personal loan. This loan is used to pay off all debts, and the debtor focuses on paying off the debt consolidation loan with a single monthly payment.

To make this work, you must be able to qualify for a loan with a lower interest rate than you currently have. Some people have good luck with a zero-interest credit card balance transfer to pay off credit card debt but always read the fine print. The terms and post-introductory interest rate can make this very risky.

Debt consolidation is best for people who have a good credit score and that have the plan to pay off the loan quickly. If you have a relationship with credit unions, you may be able to get a debt consolidation loan with good terms. Online lenders often offer better rates as well.

Click here to learn more about debt consolidation and debt consolidation loans.

3) Bankruptcy Option

Bankruptcy is usually the last-resort debt relief option. The legal action of filing bankruptcy wipes out most of your owed debt including most credit card debt, however, it severely damages your credit rating for up to ten years, and bankruptcy is an expensive and time-consuming process.

Bankruptcy requires the need for expensive legal services like a bankruptcy attorney to file it correctly.

Click here to learn more about bankruptcy.

4) Debt Settlement Option

Debt settlement works when a legitimate company like Pacific Debt Relief, negotiates with your creditors to lower the total amount you owe. You save up money in a dedicated savings account, and after there is the needed sum, the negotiated debt is paid off.

Generally, debt settlement companies deal with unsecured debt like credit cards, medical debt, and personal loans.

A debt settlement program is usually best for people who can not make monthly payments and are considering bankruptcy.

How can California debt relief help me if I'm struggling to make payments on my debts each month?

Learning to budget and manage your money can actually help you free up money to make payments. Lowering the amount you owe through our debt negotiation while saving money can dramatically reduce or eliminate monthly payments.

It is very easy to get into debt. It is far more difficult to get out of debt, sometimes nearly impossible. This is why you'll hear us stress the need to be as proactive as possible and not to get into debt in the first place. Paying your bills on time would be the first step.

How do I apply for debt relief in California, and what kind of documentation do I need to provide?

There are safety net financial assistance programs available for California residents. You can find more information here.

Since we are a professional debt settlement company with years of experience, we will address these questions from our perspective. Remember that even if you do not qualify for our debt settlement program, we can refer you to a trusted partner that better fits your financial needs.

1. Gather all information about your debts and income
2. Make a free, no-obligation call to our award-winning customer service team
3. Get an assessment of your situation
4. Decide if this is the program for you
5. Enroll in our California debt settlement program
   

Do I Qualify for Debt Relief with Pacific Debt if I live in California?

• All your existing debt should total at least an enrolled debt amount of $10,000 in unsecured debts (credit card debt, payday loans, debt consolidation loans, unsecured loans, medical expenses, collections and repossessions, business debts, and some student loans).
• You are having difficulties making minimum monthly payments or late fees (you'll put what you can afford into a single monthly payment into a settlement fund) or making on-time payments.
• If you live in a state where we provide debt relief, like California. We also provide debt settlement in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Florida, Idaho, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Mexico, New York, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia, Wisconsin

* Since not all states are included, not all clients can enroll in our company. People living in other states can be connected to one of our trusted partners.

What California Residents can expect from our California Debt Settlement Program

• Your monthly payments will be based on your budget
• Resolve your situation in 2-4 years, based on the national average
• No upfront fees and low monthly fees. Fees vary from 15-25% of the total enrolled amount and state of registration
• Personal attention from your assigned Account Manager and Certified Debt Specialist
• Award-Winning and Rated Best Customer Service & Support
• We can negotiate decreased balances and lowered interest rates with individual creditors holding unsecured debt
• No unsecured personal loans are needed

Once I'm approved for a debt relief program, what happens next and how long will it take to see results?

Once you are approved and enroll in the Pacific Debt Relief program, you will make monthly payments into a secured savings account. The monthly payment is based on your monthly income and budget.

While you start making these payments, we then start to negotiate with each creditor. Since we have worked with thousands of companies, especially credit card companies, we know who is likely to settle and for how much. We have settled more than $300,000,000 in debt for people just like you. We have established relationships with most of these companies.

It usually takes between 24 and 48 months (2 to 4 years) to complete the program. During this time, we encourage you to learn budgeting and money management skills.

How much does debt relief cost and is there any way to get it for free?

Our fees vary between 15% and 25% of the total enrolled amount.

Do not sign up with debt settlement companies that require upfront fees. This may indicate that the debt settlement company is a scam.

You can absolutely try to do it yourself for free. But consider that you get what you pay for and we are professional negotiators! Not only that but there is an exorbitant amount of time required both to contact and negotiate from start to finish with each creditor. This is where our established business relationships can help speed up the process.

Will my credit report be affected by enrolling in a debt relief program, and how can I rebuild my credit after completing the program successfully?

Your credit score will most likely take a hit no matter what type of debt relief you pursue. With our California debt settlement plan, you usually need to stop making payments to really convince a creditor that you are serious before they will settle any debt. This can obviously cause your credit score to decrease as the number one factor in credit scores is on-time payments.

With a little time and care, your credit score will recover and bounce back. We have many articles written about fixing your credit score.

With bankruptcy, the bankruptcy stays on your report for at least ten years.

With debt consolidation, you can decrease your credit score by taking out a loan, although paying off your bills does help.

The secret, once you find debt relief, is to 1) pay all bills on time; 2) not open more debt; 3) keep revolving debt like credit cards paid off, and 4) we've said it once, and we'll say it again, PAY YOUR BILLS ON TIME.

Are there any risks or downsides associated with enrolling in a debt relief program, and what should I watch out for before making a decision?

There are a lot of scammers out there. Always look for accreditation, how long the company has been in business, and if they charge up-front fees. Check both reviews by customers and other 3rd party companies like Trustpilot.

Pacific Debt Relief Accreditation

We are accredited by:

• The Consumer Debt Relief Initiative (CDRI)
• International Association of Professional Debt Arbitrators
• Better Business Bureau. View the Pacific Debt BBB ratings.

Accreditation means that we have met or exceeded standards and training for our work. You can get more information about accreditation and if the company is accredited by contacting each accreditation company.

Being accredited and having satisfied customers is key when evaluating debt relief firms. Learn more about what to look for in a reputable debt relief company when making this important decision.

Reviews of our Debt Relief Program

•  Accredited by Better Business Bureau since 2010 with BBB A+ rating(4.79 rating and 144 reviews)
•  US News and World Reports and Bankrate.com ranked Pacific Debt as one of “The Best Debt Settlement Companies of 2020”
•  4.8 star rating by BestCompany.com (over 2341 client reviews)
•  4.8 star rating by TrustPilot based (over 718 verified consumer reviews)
•  ConsumerAffairs.com Accredited (over 538 verified reviews with an average rating of 4.6 stars)
•  A Top 10 Rated Company by TopTenReviews.com, ConsumersAdvocate.com, and Top10debtconsolidation.com
•  4.6 star rating by Google (83 client reviews)
•  100% rating by SuperMoney (9 client reviews)

Follow the links to read actual reviews by verified clients. We are very proud of our ratings and reviews! Pacific Debt has helped thousands of people reduce their debt. 

Pacific Debt Relief Has Years of experience and Success

Since 2002,  we've settled over $300 million in debt for our clients and have helped countless people figure out their best debt relief options. We offer a no-obligation, FREE debt relief estimate where we can see how much money we can save you.

Here are some reviews of Pacific Debt Relief