These days, offers of easy credit crop up on our phones and in our mailboxes like flowers after a good spring rain. But don’t let the bright promises fool you: Unmanageable debt means fees, hassles and stress. Managing debt is pivotal to reaching your financial goals. But it doesn’t have to be hard or painful. We are standing by to help.
DFPI and debt
We have information and insights to help you chart your own smart path through today’s thicket of personal finance options. You’ll gain the knowledge you need to steer clear of high-cost credit and toxic frauds as you move toward long-term goals like buying a house, starting a business, or saving for retirement. We also regulate debt collectors and most lenders in California, so if you feel you are being mistreated or a victim of fraud, submit a complaint.
Featured Resources
Debt Collections: What consumers need to know
If you are late making payments on a loan, a credit card, or other bills, you may be contacted by a debt collector. To collect a debt, they can call and email consumers, but they are restricted from engaging in unfair, unlawful, deceptive, or abusive acts or practices.
Payday Loans and Cash Advances
Payday loans and cash advances are legal in California, and are regulated by the DFPI. It’s always a good idea to research who you’re borrowing from
Buy Now Pay Later
Things like interest free terms can make that special gift or purchase even more tempting. However, BNPLs tend to have fewer protections and more conditions than traditional loans or credit cards.
Useful Terms
Credit Score
information from your history of loans, credit cards, and payments to assess your creditworthiness – the lender’s assessment of how worthy you are to take on additional debt.
Credit Utilization Ratio
the percentage of your available credit that you’re currently using.
Debt-to-income Ratio (DTI)
compares monthly debt to income. Assessing your ability to make payments plays a big role in how lenders assess your eligibility for a loan.
Grace Period
the stretch of time in which you can pay your balance in full without incurring any interest charges.
Interest Rate
the percentage of the amount you’ve borrowed that is charged by a lender or merchant for letting you use its money. A bank or credit union may also pay you an interest rate if you deposit money in certain types of accounts.
Principal
the original amount of money borrowed, minus any interest and fees. As you pay down your loan, part of each payment goes toward your principal and another part goes toward interest.
Other Useful Links:
- Financing & Lending Education: Valuable insights and guidance on managing debt, fixing debt problems, and protecting yourself from fraud.
- Brochure: Reduce Your Debt: A downloadable guide to help you manage debt and control your economic future.
- Debt: A Guide for New Americans: Debt may sound forbidding if you come from a culture where cash is king, but debt can help you achieve your American dreams. If you need more guidance understanding credit, check out Consumer Financial Education: Credit and Credit Reports or check out some of our CalMoneySmart grantees, that specialize in offering support.
- How to get out of debt: If you’re worried about how to get out of debt, this FTC resource provides key insights and how to find legitimate help.
Other Recent Consumer Alerts and Insights
Consumer Insights
7 Tips for First-Time Homebuyers
Buying your first home can be exciting—and stressful. In the homebuying process, many financial questions are sure to arise. Follow these tips to get started.
Consumer Insights
How to get free credit reports
Jan 17, 2025
Checking your credit history regularly helps catch scams and identity theft early.
Alerts
Be Vigilant Against Scams and Unlawful Activities Seeking to Exploit Heightened Economic Anxieties Resulting from Wildfires
Jan 21, 2025
Be Vigilant Against Scams and Unlawful Activities Seeking to Exploit Heightened Economic Anxieties Resulting from Wildfires.
Alerts
DFPI Imposter Asking for Account Information to “Disburse Victim Funds”
Nov 18, 2024
The California Department of Financial Protection and Innovation (DFPI) has received information about scammers fraudulently claiming to be from the “Department of Financial Protection and Innovation”, using the email address [email protected].
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Resources and Publications
Industries we regulate
- Commercial Banks
- Industrial Banks
- Public Banks
- Credit Unions
- Trust Services
- Securities
- Franchises
- Capital for Businesses
- Broker-Dealers & Investment Advisers
- Money Transmitters
- Debt Collectors
- Check Sellers, Bill Payers & Proraters
- Consumer & Commercial Loans
- Payday Lenders
- Insurance Premium Finance
- Residential Mortgage Lenders
- Mortgage Loan Originators
- Property Assessed Clean Energy (PACE)
- Escrow
- Student Loan Servicers