Debt settlement tips for California residents

How debt relief works Third-party agencies charge fees to help you negotiate, but you can save the money and advocate for yourself. Creditors often reach out to you with options to reduce or settle outstanding debt. You don’t have to be afraid to work with creditors. The important thing is to document every encounter and get all agreements in writing before making any payments. You also want to make sure that your payment history and balance agree with what your account is showing. Bring any discrepancies to the creditor’s attention. Once you have a payment arrangement, keep it and pay on time. Late or missed payments can void agreements and result in higher fees and interest charges.

Filing bankruptcy Bankruptcy is a form of debt relief. Depending on how far behind you are, it’s an option that you might consider. Bankruptcy can significantly reduce or eliminate payment on some items. You may be able to keep your house or your car in some cases. If you choose debt relief in the form of a payment arrangement, it's important to honor the agreement, or it can result in further financial consequences. A strong debt relief plan can lift stress and give you a sensible way to pay off outstanding debt.