Managing Debt - Consumer Topics - DFPI
Source: https://dfpi.ca.gov/consumers/managing-debt
Archived: 2026-04-23 17:37
Managing Debt - Consumer Topics - DFPI
Skip to Main Content
Managing Debt
When used thoughtfully, debt can be a useful tool in building generational wealth and reaching your financial goals. But it can also get out of control quickly if not managed.
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
Press Release
Supporting Financial Empowerment: DFPI Opens New CalMoneySmart Grant Application Period
Mar 30, 2026
The DFPI announced that $3.2 million in grants is available through the 2026–2028 CalMoneySmart program for nonprofit organizations that provide free financial empowerment services to California residents.
Consumer Insights
Know your debt collection rights
Dec 22, 2025
Fed up with notices from debt collectors? Learn your rights and get help.
Alerts
WhatsApp Investment Groups Falsely Posing as a California-licensed Broker-dealer
Apr 15, 2026
The DFPI has received information that two WhatsApp investment groups, Freckie Capital and FRK Strategic Partner VIP3, are falsely posing as licensed broker-dealers, and convincing consumers to download the software application Bosonic (“App”).
Alerts
WhatsApp Investment Group called “Sofi Investment Group” Posing as a California-licensed Investment Adviser
Mar 9, 2026
The DFPI has received information that individuals are using the WhatsApp group “Sofi Investment Group” to falsely present themselves as licensed investment advisers.
Stay Connected
Subscribe
Facebook
Twitter
Linked In
YouTube
Instagram
Resources and Publications
News
Consumer Alerts
Press Releases
Events
Reports
Regulated Industries
Actions & Orders
Laws & Regulations
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
Skip to Main Content
Managing Debt
When used thoughtfully, debt can be a useful tool in building generational wealth and reaching your financial goals. But it can also get out of control quickly if not managed.
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
Press Release
Supporting Financial Empowerment: DFPI Opens New CalMoneySmart Grant Application Period
Mar 30, 2026
The DFPI announced that $3.2 million in grants is available through the 2026–2028 CalMoneySmart program for nonprofit organizations that provide free financial empowerment services to California residents.
Consumer Insights
Know your debt collection rights
Dec 22, 2025
Fed up with notices from debt collectors? Learn your rights and get help.
Alerts
WhatsApp Investment Groups Falsely Posing as a California-licensed Broker-dealer
Apr 15, 2026
The DFPI has received information that two WhatsApp investment groups, Freckie Capital and FRK Strategic Partner VIP3, are falsely posing as licensed broker-dealers, and convincing consumers to download the software application Bosonic (“App”).
Alerts
WhatsApp Investment Group called “Sofi Investment Group” Posing as a California-licensed Investment Adviser
Mar 9, 2026
The DFPI has received information that individuals are using the WhatsApp group “Sofi Investment Group” to falsely present themselves as licensed investment advisers.
Stay Connected
Subscribe
Linked In
YouTube
Resources and Publications
News
Consumer Alerts
Press Releases
Events
Reports
Regulated Industries
Actions & Orders
Laws & Regulations
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