The Rising Cost of Living in Orange County and Its Impact on Consumer Debt

Residents of Orange County, including people in Anaheim, are face substantially higher cost-of-living expenses and the average household. 

According to an analysis of home costs, utility expenses and grocery costs, the overall cost of living in Orange County is 64% higher than the national average. Housing costs, in particular, are 175% of the current national average.

Homeowners aren’t the only people facing staggering cost-of-living expenses in Orange County. Renters may receive as little as one month's notice of a significant upcoming increase in their rent. Sudden medical bills and inflation at the grocery store can all put pressure on a household budget.

Families may end up relying too much on their credit cards to cover budgetary shortfalls. The balance that they carry forward every month may slowly increase, making it more difficult to maintain a balanced budget and pay back the balance accrued in months prior.

Combine that growing balance with interest, over-limit fees and late payment fees and it can create a truly overwhelming financial situation. Individuals may struggle to regain control over their budgets as cost-of-living expenses leave them reliant on revolving lines of credit for basic necessities.

People weighing their options may consider debt-relief services provided by businesses, but these may actually trap people in a cycle of slowly increasing financial obligations. Consolidation loans and balance transfers often come with fees that increase what people owe. They may offer deceptive introductory interest rates that rapidly increase after the promotional period ends. Short-term loans, such as payday loans, often have high fees and unsustainable interest rates, leading to increasing budgetary shortfalls.

Bankruptcy offers immediate relief from collection efforts through an automatic stay. It also offers elimination of certain financial obligations through the discharge of eligible debts. People can choose between a Chapter 13 bankruptcy, also referred to as a wage-earners debt restructuring plan, and a Chapter 7 (liquidation) bankruptcy. 

A personal bankruptcy attorney’s insights can assist in determining what form of bankruptcy will make it easier to gain control over spiraling debt related to a high cost of living. A bankruptcy can halt aggressive collection efforts and eliminate certain financial obligations, including snowballing credit card balances.

At Marlin Branstetter Attorney at Law in Anaheim, I deliver effective legal support to Californians living with unmanageable debt and considering bankruptcy. Call me at 714-276-8589 or contact me online to schedule a free initial consultation.