In the aftermath of the recession, the Emergency Economic Stabilization Act gave hundreds of billions to banks while denying economic relief to Californians, who were pummeled by rampant foreclosures and a 10%+ unemployment rate in 2011. Even today, many debt-stricken families in the golden state struggle to pay their credit card debt and mortgages. California debt consolidation hasn’t helped much. But, the story of San Diego’s Armando Gomez brings hope.
Two years ago, Gomez had the misfortune of becoming unemployed. The painter by profession took whatever odd jobs he could find to feed his family. Drowning in credit card debt, he needed to research fast and aggressive credit solutions. Unfortunately, credit counselors provided no outlet to effectively reduce his credit card debt.
The California Debt Consolidation Problem
According to a Consumer Reports survey, “credit counseling debt management plans have a 79% consumer dropout rate.” The study found that consumers failed to complete the debt consolidation plans because their steep monthly payments were close to or higher than the consumers’ credit card debt minimum payments. Another cause for the high dropout rate is that debt management plans basically reduce interest rates.
Realizing the band-aid treatment of California debt consolidation, Gomez faced two choices. Either not paying his credit card bill or skipping a mortgage payment. According to the Mortgage Bankers Association, “more than 6 million homeowners were either delinquent on their payments or in foreclosure at the end of the third quarter of 2011.” However, determined to save his home, Gomez defaulted on a Bank of America credit card obligation.
Powerful Solution to Crush Credit Card Debt
Soon enough, bill collectors barraged the poor debtor with nasty collection calls. The harassing callers seemed like pushy car salesmen, except they were demanding that he immediately pay up a very large debt. By the time calls escalated into legal threats, Gomez searched for a solution to end the unbearable pressure. He found the Debt-to-Freedom Plan.
Debt Free League, the San Diego debt settlement company that provides the Debt-to-Freedom Plan, showed Gomez light at the end of the tunnel. He’d be able to settle his entire debt, saving on both principle and interest. They also tailored for him a credit card debt repayment plan to uniquely fit his budget. And, within months, he negotiated with the credit card company a $4,650 settlement. As a result, his $21,976 credit card debt was “paid in full.”
When burdened by immense credit card debt, California debt consolidation may not suffice to resolve your financial hardship. However, trying a credit card debt settlement can get you a new lease on life.
Editors Note: This is a guest post by Debt Free League, provider of the Debt Free League Blog (www.debtfreeleague.com/blog). The blog of the San Diego debt settlement company provides information on California debt consolidation, credit card debt settlements, bankruptcy, and tips to fight abusive debt collectors. For a free consultation call 1-800-213-9968.