Debt Consolidation: Los Angeles Residents Have Options Available

June 13, 2023

When people say "all that glitters is not gold"— they could be referring to the sometimes glamorous, sometimes plastic city of Los Angeles, California. While "The City of Angels" was founded in 1781 by a group of Mexican families, it wasn’t until the first discovery of gold in 1842 that its population began to boom… and boom. Today this city is home to more than 4 million people, making it the second most populous city in the entire U.S.

Los Angeles has plenty of glitz and glamor, as it serves as the epicenter of show business. People move from all over the country and world to try to get their big break in sunny L.A. But the truth is that most Los Angelenos live and work outside "the industry," and living isn’t always easy here. According to research from UCLA, local renters are paying, on average, almost half their income for rent—meaning L.A. is "the least affordable rental market in the nation."

Los Angeles is a beautiful place to live and explore. From the beachside views to the beautiful canyon hiking trails and everything else in between, it’s an unforgettable city. But the fact of the matter is that it’s not always easy to stay afloat financially with such a high cost of living. If your lifestyle has put you in over your head, some form of credit card debt relief could get you back in control.


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Explore Debt Relief Choices in Los Angeles, California

Debt is as different as the neighborhoods sprawled out across Los Angeles. And the solution you choose depends on the challenges you face. Keep reading to learn more about some of the options available to you.

Explore Debt Consolidation in Los Angeles

What does debt consolidation do for Los Angeles residents? By taking out a single loan and using it to pay off debts, this strategy allows you to simplify the repayment process. Instead of trying to juggle different balances and due dates, you can turn your attention paying back a single loan at a fixed rate over time.

The downside is that this strategy does not necessarily reduce the amount you’re paying, although a consolidation loan often carries a lower interest rate than other kinds of debt.

Conduct a Balance Transfer on Credit Card Debt

High interest rates bogging you down? One of the hardest parts of paying back credit card debt is getting a handle on all that compounding interest. Transferring your balance to a card with low or no APR can help here, assuming you can qualify for such an offer. Just look out for limited-time introductory periods after which interest rates bounce back up above 15 percent.

Learn More About Settling Your Debt

Carrying more than $7,500 in debt and wondering how in the world you’ll ever pay it off? Debt resolution aims to settle debts for less than the original amount. The first step is making sure you enroll in a reputable program. When you do, you’ll likely divert the money you were using to make payments on your debt so you can make monthly deposits into an account. As you grow this fund, negotiators from your debt relief program reach out to creditors and attempt to reach a reduced settlement.

Creditors sometimes agree to settle because the other alternative is receiving limited or no payment at all. This can be a huge relief for Los Angeles residents facing thousands upon thousands of dollars in debt. But there are a few cautions to consider. Debt settlement will affect your credit score, especially if you stop making regular payments as you’re saving up to negotiate. But it can help you avoid a more serious default like bankruptcy. You must also be willing to stick with your debt relief program, potentially for two to four years or more.

Freedom Debt Relief has settled more than $9 billion since 2002. That’s 43,891 accounts per month, on average. To see if settlement is right for you, talk to a Certified Debt Consultant at 800-910-0065.

Finding Debt Relief in Los Angeles

Sometimes debt feels as downright sticky as the La Brea tar pits. But the good news is that Los Angelenos have options like consolidation, settlement, balance transfers and many more. Here’s another way to think of it: Your financial future can start to feel more like a beautiful cruise down Mulholland Drive rather than a rush-hour commute on the Interstate 405. The first step is finding the strategy that’s right for you.

How people in California are handling debt stress

The debt cycle forces many people to spend many years and a lot of money getting out of debt. Debt can hurt your credit score, too, making it even harder to break the cycle. About 50% of consumers in California who looked for relief from their debts last month had credit scores under 600. If your credit score is below 600, there aren’t many options for refinancing your debts to a lower rate that'll help you pay it down faster. Experian says the average credit score in the U.S. is 714, and we know that many people with lower scores are being hurt by late payments and high credit card balances  

Even a single maxed-out credit card can have multiple negative effects on your financial health. Besides hurting your credit score and costing you a fortune in interest charges, the maxed-out card leaves you without available credit that you could lean on in a financial emergency. High balances are a red flag. Most people in California who started a Freedom Debt Relief program last month are using at least 70% of their available credit, and 17% have one or more maxed-out cards.  

Collection accounts are another warning sign that debt is becoming unmanageable. In California last month, 76% of consumers looking for debt relief had at least one past-due account. That makes sense, since being unable to keep up is often what drives someone to reach out for help.  

The biggest group of people seeking debt relief in California is 36-50 years old. Of all Californians applying for debt relief last month, 36.2% were in this age group. 

It’s never too early or too late to start looking for ways to get rid of your debt and improve your finances. You don’t have to be in trouble to know it’s time to make positive changes. Although about one-fourth of American adults have an account in collections, last month, more than 24% of people in California reaching out for help didn’t have a single account that was past due. Freedom Debt Relief offers strategies tailored to each individual’s situation, like making an aggressive payment plan, getting a debt consolidation loan, or negotiating with your creditors to accept less than the full amount you owe.

Freedom Debt Relief can help you understand and implement tactics such as making a workable payment plan, getting a debt consolidation loan, or negotiating to have creditors accept less than the full amount you owe. Figuring out the right mix of tactics can be the first step toward solving those nagging debt problems. 

End Your Debt

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    One low monthly program deposit
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    Settlements for less than owed
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    Debt could be resolved in 24-48 months