Credit Card Debt Consolidation California |
By Ashley Russell on April 1, 2011
.jpg.aspx) Credit card debt consolidation can be used to group all of your debts together for a smaller total amount owed. This can be handled by having a company act on your behalf to negotiate a lower total amount of debt that you need to pay and then put it all into one easy monthly payment. Many of these programs can be costly and are fairly unregulated. Therefore, in some states like California, there are laws and regulations enacted that can affect the debt consolidation process.
California has many different regulations that benefit those who are in debt and need help to recover. For example, there is a regulation on the amount of money a company can charge for debt consolidation programs. Companies are only allowed to charge up to $20 a month for debt consolidation programs, which is a manageable amount for most people. Collections agencies are also limited to charging no more than 10% interest on their services rendered. This helps keep companies from cheating the debtors who use them out of more money.
Payday Advance Loans make up most of the debt in California, and everywhere else in the United States for that matter. Because these loans are so easy to obtain, usually just being 18 and having a job can get you a loan, California also attempts to regulate these lenders. Lenders of payday advance loans must apply for a license to be able to loan out any amount of money professionally.
Many argue that regulations will hurt businesses. In California these regulations have helped to make a more useful and productive debt reduction industry. They have made debt more manageable for individuals and allow them to get out of debt easier by limiting the amount they must spend to receive certain services. In an economy like the United States, other states should look into adopting harsher regulation as well to help their citizens recover from debt. |
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