The need for credit card debt relief is particularly critical in places such as California, which suffered the mortgage crisis in a profound way. Unemployment has also had a severe impact on the economy of this state. Even if you remain employed, wages have remained flat while prices have skyrocketed.
If you find yourself heavily indebted to credit card companies as a result of your efforts to survive this difficult time, you should be aware of the dangers to which you expose yourself when you carry significant debt loads. You should also know that there are ways out of your debt problems. Some of these solutions are better than others.
Many people become so accustomed to indebtedness that they become complacent and stop worrying about it. They might think that they can eventually just walk away from their debts or escape them somehow. Actually, most creditors are quite serious about their intents to get their money back. Credit card companies can be very aggressive. The statute of limitations in California for debt collecting activities varies depending on the kind of debt owed. Creditors may have anywhere from two to four years to pursue you. This is plenty of time to take legal actions and even garnish your wages.
Solutions to Debt Problems
You do not have to throw yourself on the mercies of your creditors. There are a number of opportunities for debt relief available to the common person. Among these California credit card debt relief programs are debt consolidation and bankruptcy.
Debt consolidation is a method of erasing debt to which many people resort because they sincerely want to pay back what they owe but cannot handle the high interest rates of their credit cards and the multiple payments required every month. This route to debt freedom is not as short as some might believe.
Most debt consolidators make a large loan to their clients. With this loan, debtors can pay off their creditors. They remain in debt, but now they owe their debt consolidation company instead of several others. The interest rate on this loan is usually better than the rates they paid on their other debts. However, it could take many years for the clients to pay off this large loan.
Bankruptcy is another option for people seeking their way out of debt. Many people are attracted to the finality and totality of bankruptcy. Though it may be a drastic move, a bankruptcy decision usually eliminates debt entirely. The negative consequences often seem bearable in exchange for complete erasure of debt.
The Debt Settlement Option
Increasingly, many people interested in California credit card debt relief programs are looking at debt settlement as a better option in comparison to debt consolidation and bankruptcy. A debt settlement can do more than just erase debt. It can often do so quicker than these other solutions and without causing such lasting damage to credit scores.
The best way to repay your debts without submitting to ridiculous interest rates is to refuse payment while amassing a large sum with which to negotiate with their creditors. This process is difficult. That is why these debt advisers offer to help clients manage this situation over the course of two to four years.
If your debts qualify for their help, these debt consolidators will do something much better than make you a loan. You begin by paying them a monthly sum that is similar in size to the payment that you are already making. This helps you avoid the burden of additional expenditures. Part of this sum is a service fee. The rest begins to accumulate in a deposit set aside for negotiations. Over the next two to four years, your debt consolidators will use this growing fund to offer one-time payments to your creditors. These payments amount to less than what you actually owe. In exchange for these large payments, your creditors agree to close your account and erase the debt.
When your last creditor agrees to this exchange, you are debt free. Your credit rating begins to rapidly improve. Many people report receiving credit card offers right after their last creditor accepts payment.
This system gets people out of debt much faster than regular debt consolidation. It also heals the damage to their credit rating faster than a bankruptcy, which can scar your credit record for as long as ten years. Contact us if you think that this program would work for you.