Texas Debt Relief: Expert Strategies to Overcome Financial Strain
20 MIN READ
Published March 16, 2023 | Updated October 09, 2024
Expert Verified
Written by Christie Hudon
Edited by Wes Silver
Reviewed by Brad Reichert
For numerous people in Texas, debt weighs heavily on them. If you are facing any financial difficulties, TurboDebt’s programs and resources aim to offer solutions and help you get back on track. We understand that Texans need choices to help relieve unsecured debt, especially since Lone Star State residents carry some of the highest credit card debt in the nation.
Financial expert and Founder and Managing Director of Reichert Asset Management LLC offers the following advice to individuals seeking credit help with excessive debt:
“When searching for a debt relief program in Texas, verify that the national debt relief organization is properly licensed and registered to offer its services in Texas. Check if they comply with the state's regulations, such as the Texas Debt Management Services Act and the Texas Credit Services Organization Act.” Reichert advises.
From creditor negotiations to exploring debt settlement options, readers gain a deep understanding of what is Texas debt relief and how to leverage it to their advantage. Read on for information about Texas debt relief, including debt statistics, options for relief, and answers to common debt relief questions.
You know what they say about Texas: everything is bigger. It’s the second most populated state in the U.S., just behind California. It’s also one of the most popular states for people to seek residence in because of its low cost of living and freedom from state income tax.
While the “Star State” may sound like a dream come true for cost savings, the amount of debt Texans have piled up is definitely one of the “big” parts of the state.
Credit card debt in Texas ranks higher than the national average. Because of this accrued credit card debt, along with missed and late credit card payments, Texas has one of the lowest credit scores in the US.
While it may be cheaper to live in Texas, with the low cost of living and access to multiple low-priced services, debts can still add up fast and put consumers in financial trouble. Income may not be consistent for many blue-collar workers, especially in the oil field industry, so debts can add up fast and put consumers in financial trouble.
What we do at TurboDebt is to help Texans overcome high credit card debts and get right on track with your finances. More importantly, to helps you avoid all kinds of financial troubles that arise from card credit debts.
Debt relief is the process of relieving an individual, family, or group of their debts or money owed to debt collection companies through a specific payment plan. Debt can come from credit card bills, medical bills, mortgage payment bills, personal loans, and other secured or unsecured debt. Finding the right debt relief option for Texas residents depends on their specific financial situation.
By negotiating with creditors or consolidating debt through low-interest-rate loans, individuals can streamline their repayment process and save money on interest charges over time. Here are four ways debt relief works in Texas:
This is a financial strategy to get debt quicker and help you manage your debts. It can be agonizing when you have multiple payments to worry about. Instead of a monthly payment plan, debt consolidation is a loan you take out to repay your debts. You borrow money to get debt faster, pay off your other loans in a lump sum, and then repay that debt consolidation loan including interest over a while. Debt consolidation loans may require paying an upfront payment as well.
Debt settlement is the process in which you negotiate with creditors and debt collectors to let you repay a certain percentage of the money owed and forgive the creditors the rest of the debt. This is a good option especially when you are unable to pay the debt in full. You can also call debt settlement companies to involve licensed debt settlement companies. This reduces the potential for scammers and debt settlement companies who promise they can forgive your debt after you pay them. Take control of your finances today with our insightful advice on debt settlement.
Credit counseling involves working with a credit counseling agency to help develop a personalized plan to address your financial struggles. In a credit counseling program, you’ll work with debt counselors who are certified and trained in areas such as consumer credit, budgeting, and management. They advise you on how to create a budget and plan to pay off your debts, offer financial education, and help you get copies of your credit reports.
If you are in an unimaginable debt crisis, a Texas debt relief company is what you need. A debt relief company can function as a for-profit or nonprofit company that negotiates with lenders to change, reduce, or settle a person’s debts. They offer financial guidance or set up alternative plans. to help you navigate through your finances.
Debt relief companies will often negotiate with lenders to let those in debt pay a “settlement,” which is a sum of money less than the total amount the person owes to creditors. They may ask you to put away a certain amount from your monthly paycheck into an account until the amount accumulated reaches the debt settlement amount. These debt faster programs sometimes ask the person in debt to stop making monthly payments to lenders.
TurboDebt offers unique services to different individuals. At TurboDebt, we use strategic planning, advising, and consulting to help you find a debt management program that will meet your financial needs. Debt relief is different for everyone, so we will work with you to find debt solutions that fit your financial situation.
These statistics encompass several types of debts, namely student loans, mortgages, credit card debt, auto loans, and personal loans. Home equity loans typically offer lower interest rates compared to other forms of borrowing, making them an attractive option for those seeking to alleviate financial burdens. Consumer debt statistics for Texas provide valuable insights into the habits of individuals within the state.
A Texas resident's average household credit card balance was $3,650 in quarter four of 2022, above the national average of $3,480.
In Texas, the average student debt amounts to $33,354. These statistics reveal the extent of student borrowing to finance education, impacting individuals' financial well-being and economic mobility.
With a typical home in Texas worth $303,971, homeowners can easily rack up mortgage debt. Soaring home prices and interest rates have made it difficult for first-time buyers to even finance a mortgage.
In 2022, the average Texas resident owed $203,260 in mortgage debt.
According to Federal Reserve microeconomic data, Texas has the highest average auto loan debt of any state in the U.S. at $7,610 per person. This is far above the national average of $5,470.
Texas consumers carry an average consumer debt of $54,290 after combining the average amount for auto loans, student loans, mortgages, and credit cards. Consumer debt comes from secured and unsecured loans. Secured debts are backed by collateral like your home or car, offering lower risk to lenders if you default on payments. Unsecured debts don’t use collateral and may come with higher interest rates since lenders risk more loaning the money.
According to the American Bankruptcy Institute, a total of 20,121 Texans filed for bankruptcy in 2022. This includes 9,981 cases filed for Chapter 7 and 9,377 for Chapter 13, the most common filings for individuals experiencing financial hardship.
According to the American Bankruptcy Institute, in 2021, there were a total of 19,762 filings in Texas total. There were 12,461 cases filed for Chapter 7, 828 for Chapter 11, 6,415 for Chapter 13, and 58 filings for other cases.
In 2022, Texas’ median household income was $67,321, with a poverty rate of 14.2%.
As of June 2023, the unemployment rate for Texas sat at 4.1%. Texas has seen unemployment trending higher than the national average and upward over the first two quarters of 2023. With the guidance of debt relief experts and the knowledge gleaned from National Debt Relief reviews, Texans can take proactive steps toward financial freedom and alleviating the burden of debt.
Texas had one of the lowest credit scores among all states in 2022, with an average credit score of 693.
A “good” FICO credit score is considered any number between 670 to 739, so Texas residents still have e average good credit score is a viable average credit score and rating for securing loans from lenders.
Texas ranked sixth in the nation for identity theft in 2022, with a total of 113,808 incidents reported. The Lone Star State also came in fourth for cybercrime losses, with over 763 million dollars forfeited through online criminal activity.
Texas currently imposes a 6.25% state sales and use tax on taxable services, retail sales, rentals, and leases. Texas does not have an individual or corporate income tax, but it does have a gross receipts tax.
Texas’s maximum local sales tax rate is 2.00%, which makes the combined state and local sales tax rate 8.25%.
The Federal Deposit Insurance Corporation found over 5% of Texans were unbanked in 2021. This indicates a large number of citizens don’t put their money in banks but use alternative sources to transfer and access funds. However, others are unbanked because they don’t have enough funds to meet the minimum balance requirements of most bank accounts.
The total amount of debt enrolled through our debt settlement company reached $138,738,482 for Texans in 2023, with the average part of debt enrolled per client at $23,599. Here at TurboDebt, we’ve helped a total of 20,794 Texas residents, with 5,879 individuals enrolled in our various debt relief programs.
Seeking relief from certain debts is a crucial step to impacting your financial stability, well-being, and, more importantly, your peace of mind. It's essential to understand which debt to prioritize among the myriad of debts. Listed below are some of the top debts you may want to resolve:
Credit debt is one of the most common and daunting types of debt, with Americans owing a collective total of $986 billion.
Texas credit card debt relief is one type of relief that TurboDebt offers. If you are in Texas and struggling to pay off your credit card, our team can help you find relief options in your state and assist you in working toward living a free life.
Debt and money problems are some of the top reasons marriages end in divorce. The cost of getting a divorce can make your financial situation even worse.
Getting a divorce can cost an average of $15,000 per person, with individuals paying up to $100,000 in more complicated situations.
TurboDebt can help you manage your debt post-divorce by finding a relief program right for you.
The average small business owner has roughly $195,000 in business debt. The general rule of thumb is to keep your business debt within 30% of your business capital. Exceeding this number can lower your business’s credit score and give lenders the impression that you are irresponsible with your business’s funds.
In Texas, business debt relief programs can help you lower your business debt-to-capital ratio and help your business thrive again.
Medical debt is another difficult financial burden to carry. In the U.S., 20% of adults carry healthcare debt. totaling 88 billion for citizens across the nation.
Settling your medical debt is tough, especially when you need to undergo expensive treatments or surgeries to live. However, TurboDebt can connect you with medical debt relief programs in Texas that can help you move toward a life free of medical debt.
Mortgage debt is the largest form of debt for most Americans. With interest rates rising and home prices skyrocketing, affording a home is more difficult than ever.
At TurboDebt, we offer support so Texas homeowners can find mortgage debt relief programs that work best for their homeownership needs.
Two out of every five retirees reported having nothing in their retirement savings accounts. Since most retirees have little to no savings, debt can follow Texas residents even after retirement.
Here at TurboDebt, we strive to help even those who are no longer in the workforce settle their debts and live the rest of their lives.
Becoming financially independent requires a strategic approach to help you manage finances. It requires your utmost dedication, internationality, and discipline. Here are steps you can take to achieve this goal:
It's very important for you to start by compiling a list of all your debts. The list should be comprehensive to help you navigate through your repayment plan. Know all the balances, interest rates, and minimum monthly payments.
When you access your debts, you can actively leverage the services of Texas debt help to assist you in managing and reducing your debt burden.
By partnering with a reputable debt company, you gain access to professional expertise and resources that can empower you to make informed decisions and take meaningful steps toward becoming debt-free.
A debt management plan is a debt relief option that combines all your current debts into one monthly payment with a lower interest rate. This can work for those who have a steady income and can make those payments over, on average, three to five years.
For example, if you have a combined balance of $14,000 on your credit cards, and you split that schedule over five to seven years each, that’s 60 payments. Each payment would be about $233.33 before interest. Including interest, payments would depend on the rate the card companies are charging you, with some over 20%! You can also try to negotiate a lower interest rate with each lender.
Let’s say you negotiate down to a fixed interest rate of 8.0%. If your balance on one card is $3,000, then the annual interest is $240. You divide that by 12 months, which for minimum payments is about $20. Add that to the credit card balance divided over 60 months, which is $50, and 50+12= $62. That would be your monthly payment on one card (assuming you did not make any further purchases with that card for the next 60 months). If you have multiple credit cards from different card companies, you can use this calculation to figure out your minimum payments due on those as well.
Debt management programs can also work for people who assist with managing and budgeting their money since this process creates a full payment schedule and plan that works within their income and other financial obligations.
Filing for bankruptcy is another option for debt relief. If you are struggling to pay off debts, you can eliminate or reduce them by either liquidating your assets or creating a repayment plan through the legal system.
You can file a petition with a bankruptcy court to start. All cases are held in federal courts, as outlined in the U.S. Bankruptcy Code.
There are different types of bankruptcy you can file for, depending on if it’s just for an individual, a family, a business, a city, or another. For example, individuals can file for Chapter 7 or Chapter 13 bankruptcy to liquidate assets, while businesses can also file for Chapter 11 to reorganize them under their business structure.
Debt forgiveness happens when a lender forgives all or some of a borrower’s balance on their loan or credit.
Most types of debt can be forgiven, such as mortgage debt or student loans. However, borrowers must qualify for a special program to be considered for debt forgiveness. Many debt forgiveness programs are offered through the U.S. government.
There are several debt relief programs in Texas with adequate resources that you can use to navigate debt and financial hardship.
Listed below are key resources and financial assistance programs available in Texas:
- For Needy Families (TANF): This is a program run through the United States Department of Health and Human Services that provides cash payments to families for food, clothes, housing, and other living essentials.
- The Texas Repatriation Program: This program provides qualified U.S. citizens and their dependents in the form of a loan when they experience unexpected and unavoidable problems abroad. These citizens of Texas may have traveled from a foreign country suffering from an event that has made resources scarce, such as a pandemic or war.
Note: There are no stimulus checks for Texas residents, and no news about them in the near future.
- Lone Star Card: The Lone Star Card offers an Electronic Benefits Transfer (EBT) card for Texas residents that provides food and cash through programs such as TANF and SNAP.
- Feeding Texas: The largest hunger relief organization in Texas, Feeding Texas provides food and resources from food banks to families and individuals in need.
- Supplemental Nutritional Assistance Program: SNAP helps people purchase food and garden seeds to plant food that has nutritional value.
- Texas Rising Star: A voluntary quality rating and improvement system (QRIS) program that works with childcare programs in Texas, Rising Star helps parents who want to find high-quality childcare facilities. Texas Rising Star works with childcare programs in the Texas Workforce Commission (TWC) and helps parents through their Texas Childcare Availability Portal find early learning programs with available spots.
- Childcare Services (CCS): This program under the TWC provides financial aid to families in need of childcare that meet income requirements. Parents can choose from licensed childcare centers, registered or licensed childcare homes, or relatives that are 18 years of age or older.
- Permanent Supportive Housing Program: This program helps those who are 18 or older find safe, affordable housing and learn the skills needed to live independently.
- Texas Rent Relief (TRR): Supported housing rental assistance program that helps those who are homeless or at risk of homelessness with temporary rent and utility assistance.
- Projects in Service in Transition from Homelessness: This transitional program helps those with mental illness or those struggling with substance abuse and their families recover from homelessness.
- Homeless Housing and Services Program (HHSP): HHSP provides funding to the nine largest cities in Texas to support those who are homeless or at risk of homelessness. They support programs for the construction, development, and procurement of housing in the following cities:
- Arlington
- Corpus Christi
- Fort Worth
- Plano
- Medical Transportation Program: The medical transportation program provides rides to qualified individuals to the doctor’s office, dentist’s office, hospital, drug store, or other medical buildings that provide covered health care services.
- American Public Transportation Association: This association provides links to transit agencies for cities, towns, and counties within the U.S. You can find bus, train, and ferry services.
- Senior Ride Programs: These services provide transportation for senior citizens who cannot transport themselves or go with a friend or family member.
It takes strategic planning, consultation, and negotiation, but you can get your finances back under control before you know it. Now that you know about debt relief options and resources in your state, consider your options to start changing your financial situation.
While considering your debt-relief options, make sure to beware of debt-relief scams. Those in debt are near the top of the list for scammers. If something seems too good to be true, it probably is.
TurboDebt is here to help you build a debt-less life. We've already assisted thousands of consumers through our debt relief services. Check out over 10,000 positive TurboDebt reviews on Google and Trustpilot to see what actual clients are saying.
Take the first step forward with a free debt relief consultation and let us help you find the best option for financial freedom.
Yes, Texas has effective great options for debt relief programs. While there are numerous options out there, consider TurboDebt’s high-rated service and service.
For debt relief, you must demonstrate that you are in financial hardship that is unlikely to end soon, that you are several months behind on payments, and that you owe a significant amount of money to lenders.
Different programs require varying amounts of debt for your credit report to a counselor for you to be considered for enrollment. For example, TurboDebt’s relief program requires that a credit report show you owe $10,000 or more.
Debt relief programs will usually charge 15-25% of the total amount of debt you owe to administer payments and hold on to funds.
For example, if you owe $8,000, and the debt relief program’s fee is 25%, then you would have to pay a fee of $2,000. Management and loan plans can have starting fees of anywhere from $0-$75. The monthly payments will be based on your remaining balances.
There are many debt relief options, and finding the one that is right for you takes a lot of research, time, and money to get started.
If you are willing to put in the effort and time it takes to work toward a worthless life, then you can find the right debt consolidation and relief program. TurboDebt helps you find the right debt management program for your financial situation, so you can finally take control of your finances and start building your wealth.
It's time to relieve yourself of debts. Take that bold step towards your financial freedom. Here at TurboDebt, our team offers you timeless solutions to navigate through your debt repayment journey with confidence and ease.
Whether you're struggling with credit card debt, student loans, or other financial obligations, we have the expertise and resources to guide you every step of the way. Don't let debt hold you back any longer – contact us now to schedule a consultation and explore how we can help you achieve your goals.
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