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Honored in 2024, 2025, & 2026 as One of the Nation's Top Workplaces

Please be advised we’re currently experiencing a phone service outage with our provider, which may make it difficult to reach us by phone. We’re working hard to resolve and apologize for the inconvenience.
Already a client? You can still connect with us in the Client Portal or DebtApp. Look for the “Chat with an expert” icon in the bottom-right corner. If it’s unavailable, fill out our “Contact Us” form.

California Debt
Relief Programs

If you’re making your payments but your balances never seem to go down, you’re not alone.

Many Californians are feeling the pressure of rising housing costs, high interest rates, and everyday expenses that continue to climb.

If you have $7,500 or more in unsecured debt, CreditAssociates may be able to help you settle your debt for less than you owe—with no loans and no upfront fees.

See If You Qualify

A Partner You Can Count On

Why Californians Trust CreditAssociates

CreditAssociates has helped people take control of overwhelming unsecured debt. Our experienced debt specialists, dedicated client support team, and innovative technology have helped thousands of consumers navigate the debt settlement process with confidence.

  • Over 20 years of experience

    Two decades helping people become debt free.

  • 1,000+ creditor relationships

    Established connections to help negotiate qualifying debt.

  • No upfront fees

    You don't pay until a settlement is reached and approved.

  • Dedicated Client Success Team

    Real support with you throughout your entire program.

  • Exclusive DebtApp®

    Track progress, review settlements, upload documents and manage your account 24/7.

  • Accredited by the ACDR

    A member of the Association for Consumer Debt Relief.

Ready to take the first step?

Free Consultation

How It Works

How Debt Settlement Works in California

If you're struggling to keep up with credit card payments, medical bills, or personal loans, debt settlement may be an option to help you regain control of your finances.

  1. You make monthly deposits

    Affordable monthly deposits go into a dedicated savings account that stays in your name.

  2. Your funds accumulate

    As the balance builds, it becomes the leverage used to resolve your enrolled accounts.

  3. We negotiate with creditors

    CreditAssociates negotiates directly with your creditors to reach settlements for less than the full balance.

  4. We manage it start to finish

    We handle the process from beginning to end and keep you informed every step of the way.

Debt settlement is designed to provide a path forward for people who have fallen behind or can no longer make meaningful progress toward paying off their unsecured debt.

Learn more about how the program works
The california state flag and the united states flag flying against a clear blue sky

Eligibility

Who Qualifies for Debt Relief in California

The program is available to California residents who meet the following criteria:

Minimum debt
$7,500 unsecured
Availability
Statewide in California

Debt we can help with

Credit cards, personal loans, medical bills, private student loans, and certain business debts

Debt we can't settle

Mortgages, auto loans, and federally backed student loans

During your free consultation, a specialist will review your debt types, total balance, and monthly budget to confirm eligibility and walk you through your options.

Check Your Eligibility

By Metro Area

Debt by City in California

California's debt burden is not evenly distributed. Here is what the data shows across the state's four major metros.

Los Angeles $10,002 avg. credit card debt
  • Los Angeles residents carry an average of $38,378 in non-mortgage debt, including $10,002 in credit card debt per resident (LendingTree, 2026).
  • Nearly 1 in 3 LA cardholders carries $10,000 or more in credit card debt, ranking Los Angeles 7th among the 100 largest U.S. metros.
  • Californians make the highest average monthly debt payments in the nation at $1,939 per person.
San Diego $9,406 avg. credit card debt
  • San Diego residents carry an average of $36,303 in non-mortgage debt, including $9,406 in credit card debt (LendingTree, 2026).
  • Nearly 1 in 3 San Diego cardholders carries $10,000 or more in credit card debt, ranking San Diego 11th among the 100 largest U.S. metros.
  • San Diego's Gen X residents carry the highest median credit card balance among major U.S. metros at $7,931, with more than 90% carrying credit card debt.
San Jose $8,228 avg. credit card debt
  • At $26,704 in average non-mortgage debt per resident, San Jose carries the lowest debt load among the nation's 50 largest metros (LendingTree, 2024).
  • Credit card balances tell a different story: San Jose residents carry an average of $8,228 in credit card debt — above the $7,890 average across the 50 largest U.S. metros.
  • And 21.8% of San Jose consumers have at least one maxed-out credit card, showing that a relatively low overall debt load does not mean every household has room to spare.
Sacramento $9,870 avg. credit card debt
  • Sacramento residents carry an average of $9,870 in credit card debt, with nearly 95% of consumers in the study carrying credit card balances (LendingTree, 2026).
  • Nearly 3 in 10 Sacramento cardholders carry $10,000 or more in credit card debt — above the 26.5% average across the 100 largest U.S. metros.
  • For Sacramento's Gen X consumers, the median credit card balance climbs to $21,771, with more than 95% carrying credit card debt.

California Debt by the Numbers

California's debt problem is not abstract. The data is specific, and it points in one direction.

  • $167B in combined credit card balances — more total credit card debt than any other state WalletHub / Federal Reserve, 2025
  • 42.4% of California households are housing cost-burdened, spending more than 30% of income on housing USAFacts
  • 22.3% average credit card APR nationally as of Q4 2025 Experian
  • 5%+ growth in California credit card balances in 2024 — one of the highest rates of any state Experian
  • 15.9% of California adults took on credit card debt to cover housing costs UCLA California Health Interview Survey, 2024

  • When housing eats most of your income and an emergency puts the rest on a credit card at 22% interest, the balance does not go down. It goes up.

Ready to see what a settlement path could save?

A free consultation with a CreditAssociates specialist takes 15 minutes and outlines a settlement plan based on your specific debt. Call 1-800-983-6693 or request a free consultation.

Our Results

Helping People Move Beyond Debt

While debt is a growing challenge for many households, thousands of people across the country have successfully completed our program.

$575M+
in debt settled annually
130,000+
settlements negotiated each year
up to 50%
potential savings on enrolled debt
10,000+
clients graduate each year
20+ years of experience in debt settlement
Get My Debt Health Score
I am really impressed with CreditAssociates. It was hard to trust that they had my back when I first signed up, but in the end, they pulled through for me. I owed nearly $9,000, and they were able to negotiate it down to $2,800. I was speechless. Thank you CreditAssociates!
Tracy sq. Jpg | creditassociates Brian T. California**

*Based on paying minimum payments and high interest rates over time.

**For confidentiality purposes, the images above are not photographs of our actual clients but are representative samples of who we successfully service.

Common Questions

Frequently Asked Questions About California Debt Relief

What is debt settlement and how does it work in California?

Debt settlement is a process in which a third party negotiates with your creditors to reduce the total balance you owe. In California, the process is legal and regulated. CreditAssociates works directly with your creditors on your behalf, with the goal of settling enrolled debts for less than the original balance. Most clients complete the program in 24 to 36 months.

Is debt settlement legal in California?

Yes. Debt settlement is legal in California and is a legitimate option for consumers struggling with unsecured debt. CreditAssociates negotiates directly with creditors on your behalf to help resolve qualifying debts for less than the full balance owed. Before enrolling, a debt specialist will explain how the process works, including potential benefits and considerations.

Can I settle credit card debt in California?

Yes. Credit card debt is one of the most common types of unsecured debt included in debt settlement programs. If you have $10,000 or more in qualifying unsecured debt, CreditAssociates may be able to negotiate with your credit card companies to reduce the total amount you owe. During your free consultation, we'll review your situation and determine whether debt settlement is the right option for you.

How much does debt settlement cost?

CreditAssociates does not charge upfront fees. Fees are only earned after a settlement has been successfully negotiated and you approve the agreement. During your free consultation, we'll explain how our program works and answer any questions about costs before you decide whether to enroll.

What happens if I stop paying my credit cards in California?

If you stop making your payments or can not make the minimum monthly payments, it can result in late fees, increased interest, and creditor contact. It will also affect your credit score. Your debt specialist will walk you through what to expect before you enroll so there are no surprises.

Will creditors stop calling?

Once you enroll in a debt settlement program, creditor communication may change, but there is no guarantee that collection calls will stop immediately. CreditAssociates will provide guidance throughout the process and negotiate with your creditors as settlement opportunities arise. Every situation is different, and your debt specialist will explain what you can expect based on your circumstances.

Can a creditor sue me in California for unpaid debt?

Yes. Creditors in California can sue to collect unpaid debt within the statute of limitations, which is four years for most consumer debts, including credit cards. If a creditor obtains a judgment, they may be able to garnish wages.

This is general information only and not legal advice. Consult a licensed attorney if you have specific concerns.

Can debt collectors garnish wages in California?

In most cases, a creditor must first obtain a court judgment before wages can be garnished in California. Debt settlement does not prevent legal action by creditors, so it's important to understand your options before deciding on a solution.

This information is provided for general educational purposes and is not legal advice. If you have questions about your specific situation, consult a qualified attorney.

Can I keep using my credit cards?

Most people enrolled in a debt settlement program stop using the credit cards included in the program. Continuing to add new charges can make it more difficult to resolve your debt and may affect your eligibility. Your debt specialist will explain which accounts should no longer be used and discuss the best approach based on your financial situation.

Is debt settlement taxable in California?

Forgiven debt is generally considered taxable income by the IRS, and California follows federal tax treatment in most cases. There are exceptions, including insolvency.

This is general information only and not tax advice. Consult a licensed tax professional for guidance specific to your situation.

What is the difference between debt settlement and debt consolidation?

Debt consolidation combines multiple debts into a single loan, usually at a lower interest rate. You still repay the full balance. Debt settlement negotiates to reduce the total balance you owe. CreditAssociates offers debt settlement only, not consolidation loans.

Is debt settlement better than bankruptcy in California?

That depends on your situation. Bankruptcy provides legal protection from creditors and can discharge certain debts, but it stays on your credit report for 7 to 10 years and involves court proceedings. Debt settlement resolves enrolled debts without a court process but does not protect against all creditor actions.

This is general information only and not legal advice. A licensed attorney can help you evaluate which option best fits your circumstances.

Still have questions? A certified debt specialist can walk you through your options.

Talk With a Specialist

Client Stories

Debt Relief Results From Real Clients

Alesia s. - client from michigan - saved $11,104
Ruben f. - client from california - saved $10,172
Joseph b. - client from new york - saved $25,537
Valentina r. - client from california - saved $20,260
Robert s. - client from oklahoma - saved $16,602
Jason k. - client from florida - saved $49,417
Nicole o. - client from florida - saved $31,162
Richard s. - client from massachusetts - saved $22,952
Michelle w. - client from north carolina - saved $13,024
Stephen b. - client from arizona - saved $11,016

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