Debt

Lawmakers propose to stop collecting child support debt owed to the government in cases where a parent’s only source of income comes from certain cash assistance programs. But advocates had asked the Legislature to go farther by forgiving old, uncollectible debt and to stop imposing a 10% interest.

During the height of the pandemic, the state clawed stimulus and unemployment checks from parents who owe child support debt to the government. The Newsom administration put a stop to the practice by the time the second stimulus checks went out, but California still retained a record $430 million in 2020.

Welfare advocates say California places low-income and minority parents in insurmountable debt by garnishing child support payments and imposing high interest rates when they fall behind on payments, keeping a larger-than-average portion for itself. The director of the agency overseeing child support says state changes would require legislative action, but meaningful changes have failed to gain traction at the Capitol.

Economists say small property owners have been uniquely pinched by the pandemic as renters move out or stop paying. Despite a federally mandated mortgage forbearance and $2.6 billion in rental relief from the state, some landlords who slip through the cracks wonder how much longer they can absorb the costs.

PG&E customers pay 80% more than national average.

Food sales, money pools and fundraising campaigns have been a lifesaver for many families affected by the pandemic.

Americans spent more on homes and reduced more in credit card debt than nearly ever before, but California experts say traditional indicators have failed to capture the pandemic's true toll, warning of a much more complicated — and unequal — debt story.

In April, the governor issued an executive order that barred water shutoffs for customers who don’t pay their water bills. State leaders are looking for ways to bail out struggling residents and smaller water systems alike, both buckling under $1 billion in water debt statewide.