Debt Consolidation: San Diego Residents Have Options Available

August 3, 2022

Cited by Forbes magazine as the best place in the country to launch a small business or a startup, San Diego’s economy is quite diverse. Home to the largest naval fleet in the world, the city’s major industries include defense and the military, as well as tourism, international trade, research and manufacturing.

One of the best places in the world to live, San Diego’s climate and setting are difficult to match. On the other hand, it is also one of the least affordable places to live in the United States. With that said, if you’re a resident of San Diego for whom financial difficulty is also a reality, you’ll be glad to know there are a number of credit card debt relief solutions available to help you get things back on track.

These include debt consolidation, debt management, debt settlement and bankruptcy. Let’s discuss each below.

Debt Consolidation in San Diego

If things are just starting to look bad, debt consolidation is probably the best way to get your arms around the problem before it gets out of hand. Bear in mind though, this will often involve trading unsecured debt for secured debt. Note that unsecured debt, like medical bills and credit card obligations, require no collateral. Meanwhile, a tangible asset backs secured debt. In many cases, this will be the equity in your home or some other property. You could lose your house if you can’t keep up the payments, so choose carefully.

It’s crucial that you understand debt consolidation simply restructures your debt. It does not reduce what you owe in any way. If you can’t afford to repay your balances, other forms of credit card debt relief might be more suitable. 

Debt Management

In a debt management program, a credit counselor will assess your situation and help you develop a budget to keep up with your debts while providing for your household needs. They can also negotiate your lenders to reduce your interest rates and get fees waived. While this debt management does have an effect on your credit score, it will take less of a hit because your principal loan amounts are repaid in full.

The counselor manages your agreements, making the monthly payments for you, using money you will deposit into an FDIC-insured escrow account every month. You will do this instead of sending payments directly to your lenders. Debts can typically be paid off within 48 months if you keep up with the program.

Debt Settlement Programs

You’ll work with a third party under a debt settlement program. However, debt settlement firms ask lenders to forgo repayment on a portion of the outstanding balance—as well as all accrued fees and interest. Many lenders will agree to this because partial payment is better than none at all. They know engaging a debt settlement professional means you’re probably one step away from filing for bankruptcy protection, under which they might not get paid at all.

You’ll stop paying creditors directly under debt settlement as well. Also like debt management, your monthly payments go into an FDIC-insured escrow account, rather than directly to the people you owe. However, instead of being used to pay lenders each month, the account balance will be allowed to grow until the debt is settled.

Each additional obligation is then handled in a similar fashion.

Bankruptcy, the Nuclear Option

Compared to the choices outlined above, bankruptcy is the legal equivalent of a “nuclear option”. While your situation will be resolved more quickly—and for considerably less money—the likelihood of anyone giving you a subsequent loan for at least ten years is only slightly better than nil. If someone does agree to work with you, the interest they’ll charge will be astronomical. The only time to seriously consider bankruptcy protection is when you are absolutely unable to pay.

Debt Solutions in San Diego

As beautiful as life in San Diego can be, it’s hard to feel carefree when you’re dealing with out of control debt. While this probably won’t make you feel a whole lot better about it, thousands of hard-working people around the country have had the exact same problem. And, just as they learned, expert assistance from Freedom Debt Relief is just a phone call away. In fact, trained specialists are available seven days a week. Call 800-910-0065 to take advantage of your free consultation today!

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Find out how our program could help.

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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