• Residents of New York City, including Brooklyn, carry an average credit card debt of over $4,000, making debt relief solutions important for those stuck in financial hardship.
  • Top debt relief options for Brooklyn residents include credit counseling, debt management plans, debt settlement, debt consolidation, and bankruptcy. 
  • In 2023, TurboDebt enrolled $10,353,551 in debt from clients in Brooklyn, New York.

Why Is Debt Relief Important in Brooklyn, New York?

Rising costs from inflation and an unstable economic climate continue to cause financial hardship for many living in the borough of Brooklyn. The average New Yorker carries a total debt balance of over $100,000, including unsecured debt from student loans and credit cards and secured debts like mortgages and car loans. 

With national credit card debt in the U.S. totaling over $1 trillion, New Yorkers carried an average credit card debt of $4,063 in 2023. As consumers struggle to keep up with an escalating cost of living, many are charging more to credit card companies just to meet basic expenses each month. 

Because of high credit card balances and other economic uncertainty, access to debt relief services is imperative for Brooklyn residents who want a way to regain financial freedom. 

The good news is, overcoming large amounts of debt is possible with planning and budgeting. Read on to learn more about debt relief programs in New York, especially options for Brooklynites.

TurboDebt Helps Brooklyn Residents Get Out of Debt

As Brooklyn residents struggled with rising economic costs, TurboDebt enrolled over $10 million in unsecured debts from hundreds of consumers in 2023 alone. Our Brooklyn clients carried an average debt of $24,534, with many caught in a cycle of credit card debt from huge outstanding balances. 

Signs You May Need Debt Relief

It’s difficult to get back on track once debt derails your finances. Instead, look for signs like these that indicate it’s time to seek debt relief programs in Brooklyn:

  • Struggling to pay monthly expenses due to debts
  • Carrying multiple high-interest balances on credit cards
  • Having high credit utilization rates (over 30%)
  • Finding you have an elevated debt-to-income ratio
  • Lacking emergency funds
  • Taking withdrawals from your retirement accounts (which comes with penalties)
  • Using predatory borrowing like payday loans to cover expenses

Top Options for Brooklyn Debt Relief Programs

Learn more about the most effective debt relief solutions for residents of Brooklyn, NY:

Top Options for Brooklyn Debt Relief 

Credit Counseling

A credit counseling agency offers New Yorkers financial education and advice about managing money to avoid and overcome debt. Once you enroll in a program, certified credit counselors can discuss your credit score and credit report, giving you strategies to improve and avoid debt collectors in the future. 

Many nonprofit credit counseling programs offer low or no-cost services for low-income residents and typically charge minimal fees for all consumers. You can choose to work with a credit counselor in person or schedule phone calls to discuss your finances and find ways to relieve your debt.

 “Due to its population size and the diversity of the residents living in the boroughs of New York, including Brooklyn, the city’s Consumer and Worker Protection department, working in combination with the Mayor’s office and the state legislature, have set up a separate “311” phone number to provide information and financial empowerment to its citizens,” explains Brad Reichert, founder and managing director of Reichert Asset Management LLC. “They do this via one-on-one phone-based financial counseling,” adds Reichert. 

Debt Management Programs

Most credit counseling agencies also offer debt management programs to aid Brooklyn clients in overcoming heavy debt loads. In these programs, credit counselors work with you and lenders such as credit card companies to arrange a monthly payment plan that goes toward all your debts. Once you sign up, you’ll send monthly payments to the organization, which then pays your creditors on your behalf, according to your repayment plan. 

Debt management programs typically work well for consumers with multiple unsecured debt payments each month. Although you won’t eliminate your debts, your counselor may secure benefits like waived late fees and lower interest rates. 

Debt Settlement

Debt settlement is an effective option for quickly paying off unsecured debt like medical bills or credit cards by reducing what you owe. To accomplish this, you’ll negotiate with creditors either on your own or through a debt relief company to eliminate part of your total debt in exchange for a lump-sum payment. 

A Brooklyn debt settlement program can often negotiate to reduce your debt by up to 50% of your original total before fees. Once you enroll, you’ll stop paying toward your debt balance and instead send monthly payments to a savings account with the organization until you save up enough money to pay off your debt. Although your credit score may dip down for a short time, this option can help you pay off high amounts of credit card debt in as little as 24-48 months. 

Debt Consolidation

Debt consolidation is typically used as a DIY debt relief solution that’s effective if you easily have the means to pay it off. Your first option under this method is to open a balance transfer credit card and roll all your existing credit card debts into the new account. Look for a card with zero interest for an introductory period and work to pay off your debt within that time frame. If not, you could be hit with sky-high rates once the initial time is up.

Using a loan to consolidate your outstanding balances allows you to “reorganize” your debts into a single monthly payment. Banks or credit unions offer various personal loans you can use to pay off all current debts at once, transferring your debt balance to a single large loan amount.

A Brooklyn debt consolidation loan is most effective for those with “good” credit scores. You’ll need to secure a low interest rate to make it worth taking on significant loan debt as a form of debt relief. Those with stronger credit scores are more likely to qualify for better rates. Otherwise, you may end up paying more for your debts over the length of the loan, which can range between two and seven years. 

Bankruptcy 

After you’ve considered all other Brooklyn debt relief solutions, bankruptcy may be your only choice. Individuals typically file for either Chapter 7 or 13 bankruptcy, which allows you to discharge debts by selling assets or reorganizing payments into a plan that reduces your debt over 3-5 years, respectively, based on what the court decides.

Before you opt for this solution, it’s a good idea to speak with an attorney at a reputable law firm to understand the legal fees and consequences of choosing bankruptcy to relieve your debts.  It’s also important to consider that choosing to file bankruptcy will severely impact your credit reports and score, and the after-effects of bankruptcy often stay on a credit report for up to 10 years.

Why Choose TurboDebt’s Debt Relief Program?

When you’re facing economic hardship, life gets complicated. At TurboDebt, we strive to help consumers rebuild their lives and make smarter monetary choices. We offer personalized service and work with you to create a plan that fits your unique financial situation. 

Here are some other reasons we think you’d benefit from working with us:

  • Faster debt repayment: Using our debt settlement program, you can pay off your debt faster, often in one to two years. 
  • Customized debt relief plans: Working with our experts, you’ll create a monthly payment plan that fits your budget.
  • Help you can trust: Earning thousands of five-star reviews on Google and Trustpilot, we’ve proven to deliver personalized and effective debt relief.

Contact our team today to get started with a free consultation.