Credit Card Debt Relief in California

August 12, 2019 Jonathan Gavalas


Credit Card Debt Relief California


Like most Americans, Californians rely heavily on credit cards. According to Transunion (credit rating agency), the average credit card debt in California is $5,196. In addition to credit card, they carry other loans such as student loan, mortgage debt and auto loan debt.

California is known to pass laws to protect its citizens.  Consumer debt is no exception. The debt collectors are prohibited to harass their borrowers when demanding for payment. 

Debt collectors have to be licensed. California statute of limitations for credit cards is 4 years; for written contracts. For oral contracts, the statute of limitations is 2 years. 

Steps to reducing Credit Card Debt

California is a state located in the western United States. The growth of the movie industry in Hollywood and Los Angeles, agriculture, high tech in San Francisco and other sectors led to creation of a $ 1.85 trillion economy.

Income is a crucial determinant of average credit card debt across the state as it can either make it more or less significant.

Taking California’s 150 cities in consideration, the ones with heaviest credit card burden are generally those with the lowest mean household incomes. These include cities such as Lancaster, Compton, and South Gage.

Proven Credit Card Debt Relief Solutions California

-Make two minimum payments per month


Request a lower interest rate; this can be done by calling each credit card company and requesting a lower interest rate. 


Set a budget; spend your money wisely so you can afford to pay your credit card debt. 

Your budget should reflect the amount of money that you spend. 


Consolidate your debt; it may be one of the best solutions to solve your high credit card debt.


Don’t use your Cards; make plans to pay in cash, and you will definitely spend less. 


Pay off the highest interest rate card first; invest any extra money you have into paying off your interest rate card first, while also paying the minimums on others. 


California Debt Relief Programs

To deal with the numerous cases of credit card debt, California has debt relief options such as operational non-profit debt counseling services, credit consolidation, debt management programs and even bankruptcy. 

For example, debt management programs work hand in hand with creditors to solve credit card debt cases by discouraging high interest rates on credit cards and coming up with an affordable monthly payments. 


Water Bill Help: Residents with low or moderate incomes, especially in Northern California can access water-bill discounts on a monthly basis.

Help with Medical Debt Collectors and Charity Health Care: California has laws that protect patients from debt collectors who are either illegal, aggressive or both. This state also assists its residents in gaining free access to medical care when need be. 

Homeowner Assistance Programs: It gives payment of up to $472.60 annually to eligible individuals to assist with home expenses. Applicants have to be 62 years of age or above, be disabled or blind to qualify for it. 

Healthy Families: The program gives free diagnosis, surgical operations and evaluation to uninsured and low incomes residents.

California Homebuyer’s Down Payment Assistance Program: to ease the burden of debts, this program gives low rate mortgage as well as down payment for first-time homebuyers. 

Debt Consolidation Programs in California


To deal with high credit card debt rates in California, debt consolidation loans are offered in the state. These programs provides a means of solving money issues, thus avoiding bankruptcy, more so, for Californians. 


However, this is just one of the several assistance plans that California has. Also, it offers financial assistance to aid with medical expenses and mortgage loans.


Debt consolidation interventions in California are of two types, namely; California consolidating loan that is secured and unsecured. You will get a new loan to pay off your many loans hopefully with a lower interest rate. 

Debt consolidation loan is ideal for people;

– With too many loans

-With loans that give you a hard time managing them

-Not able to pay their loans

-Have loans with high interest rates

It is worth noting that debt consolidation companies must provide an estimate of how long the program will take and should not charge upfront fees. 

 Despite the various efforts to offer debt relief, there are factors considered before you qualify for a consolidation loan. 


Debt consolidation is given when a person;


-Has a good-to-great credit


-Is in a number of debts that keeps growing due to high interest rates


Also, debt consolidation interventions may not work for Californian if one has;


-A poor or bad credit


-Loss of a job or divorce


-High debt-to-income ratio


-Too low credit score


-Is not willing or not in a position to change spending habits