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Stockton City is a place on the upswing. Lots of development are on-going in the city, particularly in the downtown area. Nightlife venues are being refurbished, and the manufacturing sector is also posting significant gains. The city, however, still has not completely recovered from the 2008 financial crisis that caused it to file for bankruptcy, the second largest city in the country to do so. But Stockton, as mentioned, is slowly regaining its footing and has successfully exited bankruptcy in 2015.

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Economy and financial situation in Stockton

Despite the effects of the recession, housing costs in Stockton remained more affordable than other more prominent cities in the Bay Area. If you opt to purchase house, you are looking at a monthly mortgage of $1,529. If you go the rental route, expect to pay $946 per month. Per capita is way down at $19,897 per month, though, which also explains why an astounding 25.3% of the population is living in poverty. The housing crisis was sparked by overwhelming debt and mortgage, and sad to say, a lot of the residents are still trying to get out of this situation.

Debt consolidation as a management tool

While it may seem like there is no way out of multiple loans especially with the low-income average in the city, there are several options residents can try, including debt consolidation. If you have a good credit standing, you can acquire a new loan with lower interest rates and longer payment terms to pay off your other current loans. This will allow you to escape the sky-high interest rates of unsecured loans such as credit cards, and enable you to focus on just one monthly payment, greatly reducing the mental and physical pressure in the process.

Is debt consolidation legal?

Debt consolidation is legal and is widely used in various cities and states as a means to keep debt from spiraling out of control. But it is prudent to know the laws regarding its implementation, including the Fair Debt Collection Practices Act, which is a federal law that protects debtors from hurtful and abusive collection practices by some institutions. Lawyers would be adept and experienced in these kinds of transactions, and so it would be helpful to consult one first before deciding if debt consolidation is the right method for you. Although filing for bankruptcy and other debt relief options can also be considered, debt consolidation offers the best way to preserve your credit rating while still being able to pay your debts at a much more convenient pace.