Navigating the Path to Financial Stability
California may seem like the land of surf, sunshine and opportunity, but behind that postcard image there are challenges with debt. The cost of living in California is known for being particularly high: A recent survey by Experian shows that almost 40% of Californians feel that they are struggling to pay household expenses, and the poverty rate is higher than the national average.
But there is hope. Let’s go over some options you have to find debt relief in California and take steps toward financial stability.
Three powerful tools stand ready to equip you in your financial journey:
1. California Debt Consolidation Loans
These loans simplify your debts, replacing that complicated stack of minimum payments and confusing list of payment due dates with a single, more manageable monthly payment. But approach with caution: Consolidation loans often require good credit and may have high interest rates—and if you default on a consolidated loan, it may really damage your credit score.
2. California Debt Management Plans
Credit counselors are experts who will create a personalized debt management plan (DMP) to reduce your debt without sacrificing your quality of life. They are skilled negotiators who have lots of experience convincing creditors to bring down interest rates, potentially saving you thousands. While credit counselors may help with reorganizing your debt and budget, this strategy is often most effective for those with manageable credit card balances and good credit.
3. California Debt Settlement
If it feels like you’re trapped in a black hole of debt, debt settlement may be a way out. It’s a long-term strategy that requires commitment and patience, but often offers great results.
First, you’ll have to stop payments to creditors and start saving your hard-earned pay. Meanwhile, expert negotiators will fight for significant reductions in your debt balances. Although this process can last for two to four years, it may take less time than debt management in California.
Even though your credit score might temporarily take a hit with debt settlement, you could see significant reduction in your debt.
Charting Your Course
Remember, you’re not alone in your journey toward financial stability. Whether you choose to draw up a debt management plan, enroll in a debt settlement program or simply make some tough budgeting decisions in order to free up much-needed cash, it’s time that you made a clean break with your financial past. With so many different California debt consolidation options, chances are good that you’re ready to face the future with an improved personal balance sheet.
