San Jose is located in Santa Clara County California. It’s part of Silicon Valley, which is one of the most famous, most affluent communities in the country. It’s known as this because of the sheer number of tech startups and internet success stories in the area, but that doesn’t mean San Jose is without debt issues. There are many residents in the area living below the poverty level. Approximately 10.5% of all residents here live below the poverty line. It’s low in comparison to other cities, but many of these people have a revolving average credit card debt of more than $5,000. This leaves people unable to pay their credit card debts without assistance.
The problem with debt in San Jose is many people feel it’s nonexistent. San Jose is the one city in the entire nation with the highest average income per year per household at $77,000, which gives people the impression everyone here lives comfortably and able to afford their bills. It’s not always the case, and many San Jose residents are desperate for help. Debt settlement could be the answer, but that doesn’t mean you will find it’s easy to obtain.
Debt Settlement Laws in California
The law states debt settlement companies have every right to contact your creditors with your permission to offer a settlement. This can be anything less than the amount you owe, but the law also states the creditors being negotiated with have no legal obligation to oblige. Any creditor in San Jose can deny your request to settle your debt, leaving you with issues you cannot work out. The law also states no one in San Jose can ask for debt settlement help unless they have at least $7,500 in debt. All debts that go through a settlement company must be unsecured debts. This eliminates the ability to settle car loans or mortgages.
The law does come complete with a statute of limitations, which means you might want to look into the type of debt you want to settle. If it’s past the statute of limitations, there is no legal way the collector can sue you. This means you can either settle the debt and pay it off, or wait until it falls off your credit report seven years after the first time you missed your payment.
Debt Settlement Benefits
- Pay off debts for less than you owe
- Pay off debts faster
- Pay off debts with one interest rate
- Creditors no longer report negatives to the credit bureaus
- Financial relief
Here’s what you need to know about debt settlement. It’s not for everyone. You cannot get much out of a debt settlement program if you are paying your bills on time and haven’t missed a payment. Creditors aren’t settling with their good customers. They’re usually only settling debts with people who stop paying them all together, because at this point any money they can get from a non-paying customer is better than nothing.
What this means is your credit score is already taking a beating. Your score has dropped, your report undoubtedly has many negatives on it, and there is no way you qualify for a good consolidation loan for your bills. You don’t want to stop paying your credit card payments if you can afford to make them and haven’t yet destroyed your credit. However, you do want to consider this as an option if you’re already making late payments.
Your score won’t improve when you settle debts, but creditors will stop reporting your payments as delinquent. This means your score won’t get any lower, and anything you do from this point forward will only improve it. It also means you’ll get to settle debts for less than you owe, and that saves you big money. With only one low monthly payment and interest rate, you save yourself a lot of money. This makes life easier.
Finding a debt settlement company in San Jose is as easy as performing a quick internet search. However, your best resource is the BBB. Calling the Better Business Bureau allows you to see which attorneys and companies are the most trustworthy and best at debt settlement. You don’t want to work with a company with a negative rating, because that company won’t get the job done for you. Utilizing this resource only helps you make better financial decisions, and that means you’re going to find yourself in a better financial situation.
San Jose residents as a community do live better than many, but there are always families without the income to support their debt. This means you need to find a way to get out of debt, to get back on track, and to improve your financial future. It’s not always easy, but it’s certainly not impossible. Now is a good time to get your financial life on track. Knowing how the debt settlement process works can only help your financial future.