• Unemployment in Sacramento remains higher than the national average.
  • More Sacramento residents are employed by the government than any other industry.
  • Sacramento’s high average credit score puts many residents in the “Good” category of FICO scores, making debt relief options like debt consolidation more effective.
  • TurboDebt enrolled an average client debt of over $22,000 from Sacramento residents in 2022. 

Debt Landscape in Sacramento, CA

Situated on land beside the meeting of the Sacramento and American rivers, the Capitol of California boasts many unique features. The city’s historic past as the epicenter of the Gold Rush is still present in architecture preserved from the period. In a place where past meets present, and the governing of California still makes the town just as relevant, Sacramento offers more than just a home to its half million residents. 

However, just like the 49ers of the 19th century, plenty of today’s Sacramento residents still haven’t “struck it rich,” and many find themselves struggling with debt in an inflationary economy. With California carrying the third-highest cost of living in the nation, Sacramento residents feel the effects on their spending. Economic debt relief from solutions like debt settlement and consolidation may be the assistance Sacramento citizens need to reset their finances.

Real estate prices are also a big indicator of buying power in an area. Sacramento homes sold for a median price of $545,000 in September of 2023. This represents a slight increase from the previous year, indicating that the city is still of interest to new and existing buyers. On the other hand, sales were down 22.7% from the previous year, showing a slowing market overall as interest rates continued to increase.

Thankfully, there are steps you can take to improve your financial situation. Read on to learn more about Sacramento debt relief options and how you can choose the most effective solution to restore your financial freedom. 

TurboDebt Helps Sacramento Residents Get Out of Debt

Sacramento residents enrolled a total debt of over $2 million with TurboDebt in 2022. We provided customized services to clients with an average debt of $22,849. In 2022 alone, TurboDebt offered California debt relief services to thousands of consumers, enrolling over $72 million in total debt. 

Neighboring cities like L.A. and San Diego also enrolled over $7 million in debt in 2022, using our solutions for economic relief. 

Signs You May Need Debt Relief 

When paying bills and saving money becomes difficult due to debt burdens, it may be time to pursue professional debt relief help. Here’s a look at some sure signs that debt assistance is right for you:

  • Lacking emergency savings 
  • Making minimum payments on your credit card
  • Using high-interest payday loans to cover costs
  • Carrying thousands of dollars in credit card debt
  • Buying items outside of your means often

Another big clue that debt relief is the right answer is when your debt-to-income ratio (DTI) is high. Your DTI represents how much money you owe versus how much you bring in each month through your wages or other benefits. 

This figure, represented by a percentage, is best kept low. A DTI over 50% is an indication that you’re already facing financial hardship or could be in the near future. The higher your DTI, the harder it is to qualify for a mortgage or personal loan. This is because a potential lender will view a higher DTI ratio as a sign that you may already be taking on more debt than your current income can support long-term. 

If you’re not sure of your numbers, take a minute to use TurboDebt’s DTI calculator and read more about this important figure in your financial life. Once you understand your DTI, you can rework or create a new budget using the 50/30/20 method, allocating 50% of your income toward needs, spending 30% on wants, and using the remaining 20% for debt repayment and savings. 

Best Ways To Get Debt Relief in Sacramento, CA

Debt relief solutions in Sacramento, CA

Debt Settlement

One of the most effective ways to overcome thousands of dollars in unsecured debts like credit cards is to enroll in a debt settlement program. This option allows you to leverage the experience of a debt settlement organization to negotiate for a reduced final payoff amount on your total debt. 

Once you enroll, you’ll start making payments into a savings account until you deposit enough to cover the negotiated amount. Using this method, you’ll typically save money because you’ll pay significantly less toward your debt, sometimes up to 50% of your total balance, before paying fees to the settlement organization for their part in negotiating the lower payoff.   

Debt settlement can be a great option for Sacramento residents with over $10,000 in credit card debt. With a settlement, you can often pay off your debts faster. You may also end up paying off your debt at a lower overall cost than if you stuck it out and paid the full amount of your current debt on your own. 

In 2022, we enrolled 100 Sacramento clients into our debt settlement program, with many more taking advantage of our free consultation to determine their best relief option.

Credit Counseling

When you’re in debt, getting advice from a trusted source can help you repair your finances. Credit counseling organizations offer expert aid in the form of financial education classes and personal advice from a certified credit counselor. Many of these organizations operate as nonprofits, offering low-cost or even free services to clients. 

Some credit counseling organizations might require you to complete specific courses on financial topics to receive advising services.

Debt Management Program

Typically offered through credit counseling services, debt management programs allow you to organize debt repayments into a single sum each month, which is then dispersed to your creditors on your behalf, according to a strategically negotiated debt reduction plan. 

When you sign up with a program, you’ll create a debt management plan that both you and your creditors agree to as a way to pay off your debts. Credit counselors may work as a liaison between you and your creditors to negotiate for lower interest rates or ask to waive certain fees associated with late or missed payments. 

Debt management programs in Sacramento can benefit residents ready to commit to specific monthly payments through a credit counseling organization. It’s important to note, however, that if you miss a payment, you may lose many of these benefits, like waived account fees. 

Debt Consolidation Loans

A debt consolidation loan allows you to “refinance” your debts by paying them all off at once, and instead make monthly payments towards the new, larger loan, which will often carry with it a lower interest rate.  After you qualify for a consolidation loan, you’ll use the proceeds from the new loan to pay off each of your smaller outstanding balances, leaving you with a single payment each month. 

Sacramento residents with “Fair” to “Good” credit are more likely to qualify for a consolidation loan at a better interest rate than what they have on their current debts.  However, if your interest is not low enough compared to your current debt, you might end up paying more in the way of interest, especially with the longer repayment period the consolidation loan will often have. Therefore, it’s critical that you carefully check the terms and conditions of any potential debt consolidation loan prior to signing the application to make sure this is the most effective debt relief option for your particular situation. 

Debt Forgiveness

Having your debt erased is a rare gift. However, some debt forgiveness programs do exist through the federal government and a few private organizations. Sacramento residents working in civil service positions or as federal employees are more likely to qualify for debt forgiveness. For example, federal employees can apply for personal loan forgiveness, and teachers may qualify for student loan forgiveness based on their years of service and area of expertise. 


If you’ve exhausted other debt relief solutions without success, bankruptcy may be your last option. When you file for bankruptcy, you have the chance to relieve or reorganize your debts at the expense of your credit score, which can be negatively impacted for up to 10 years. 

Most individuals file for either Chapter 7 or Chapter 13 bankruptcy. In Chapter 7, the court decides how to sell your assets to pay off creditors and may decide to eliminate any other debts that can’t be covered by asset sales. Chapter 13 reorganizes your debts without selling your assets but instead dictates a payment plan over the next 3 to 5 years.

 “If you are considering filing for bankruptcy in Sacramento or Placer counties as the last best solution for your particular debt situation, it’s very important to research the different types of bankruptcy available for you,” explains Brad Reichert, debt expert and founder and managing director of Reichert Asset Management LLC. “You should also educate yourself on the processes and requirements of each type of filing before choosing a particular bankruptcy chapter,” Reichert adds.

“It’s always a good idea to consult with a qualified, experienced bankruptcy attorney at a reputable law firm before moving forward with filing your bankruptcy petition,” says Reichert.

Top Types of Debt To Get Relief From in Sacramento, CA

Sacramento residents carry these types of debt the most:

Credit Card Debt

At TurboDebt, we see more clients with outstanding credit card debt than any other type. As more consumers suffer the effects of an inflationary economy, credit cards are a lifeline for covering essential bills when finances are tight. However, if you’re only paying the minimum or making late payments each month, credit card companies charge penalty interest rates and late fees that can quickly outpace your income, making it difficult to pay off your balance. 

Don’t let credit card debt take over your finances. Get help with TurboDebt’s customized debt relief options. It only takes a few minutes to get started with a free consultation. 

Divorce Debt

Going through a divorce is costly. Not only is it mentally taxing to part with a spouse, but monetary demands can be even higher as you split assets and pay court costs. You may even become responsible for debts that you and your spouse had initially taken on together, especially if your ex doesn’t pay their share. 

TurboDebt can help you overcome divorce debt and get your finances back under control. Contact us today to take advantage of our expert solutions. 

Business Debt

The average business owner takes on thousands of dollars in debt to start or sustain a company. In fact, 70% of businesses carry outstanding debt. What’s more, small business owners often take on personal loans to help their businesses succeed, leading to financial strain. 

At TurboDebt, we offer personalized advice and strategic planning services, along with customized debt relief plans to help you overcome business debt. 

Medical Debt

Whether from a routine medical procedure or emergency health care costs, it’s easy to rack up medical debt. For the 6.5% of Sacramento residents without health insurance, these costs can be even more dire. Medical billing can quickly turn into debt collections if you can’t make the lump-sum payments requested by healthcare companies. 

If you don’t have a healthy emergency fund to pull from, these bills can quickly spiral out of control and turn into debt. Let our experts help you make a plan to overcome medical debts and work toward a debt-free future. 

Homeowner Debt

Although many experts consider mortgage debt to be good because you build equity, the expenses of owning a home can still cause financial difficulties for homeowners. Making your mortgage payment is essential due to the threat of foreclosure, but other costs arise from repairs and maintenance. Home insurance may not cover all damages from an accident or natural disaster, forcing Sacramento homeowners to take out personal loans like a home equity line of credit (HELOC).

If your HELOC balance is getting hard to manage or you’re carrying other debts related to your property, contact TurboDebt today. Together, we’ll find the most effective debt relief solution. 

Retirement Debt

Retiring in California is an expensive prospect with the state’s high cost of living. California ranks as the 37th best state to retire, putting it relatively low on the list of ideal places to settle after your working years. While medicare options are strong in the Golden State, other related costs, like the highest income tax rate and fuel prices in the country, may cause seniors to face debt. 

Don’t let debt take over your golden years. Contact TurboDebt for a free consultation to find out how we can help you settle outstanding accounts. 

Sacramento Debt and Finance Statistics 

Here’s a closer look at the type of financial burdens Sacramento residents face:

Consumer Debt

Determining consumer debt allows you to get a better picture of the overall debt balances individuals in a particular area face. Consumer debt combines outstanding balances from credit cards, auto and student loans, and mortgages. Sacramento residents carry median consumer debts in the following areas (with sources below):

  • Credit Card Debt: $2,453
  • Auto Loan Debt: $15,747
  • Mortgage Debt: $216,192
  • Student Loan Debt: $17,625


Although bankruptcy filings have decreased dramatically in the past decade, California’s Eastern Court District, which includes Sacramento, reported 778 filings as of October 2023.

Average Income and Employment

Living in the capital city of California, more Sacramento residents find employment in government positions than in any other industry. Wages in the Capitol sit above the national average at $33.27 per hour. However, unemployment does hover higher than the nation at 4.7% as of August 2023.

Credit Scores

Sacramento residents carry an average credit score of 700. This is a strong number, firmly positioning many individuals with a “Good” credit score, worthy of lower interest rates and more loan options. It’s good to note that unpaid revolving debt balances can affect your credit score, especially if the balances are close to your accounts’ respective credit limits, so the sooner you take care of outstanding balances, the better.

If you’re unsure of your current credit scores, you can request a free credit report from all three of the major reporting bureaus or find your scores on the Annual Credit Report website.

Find Sacramento Debt Relief with TurboDebt

Learn more about Sacramento debt relief programs by contacting our experts at TurboDebt. We’ve already helped plenty of Sacramento residents find effective relief customized to fit each unique financial situation.

Even if you don't qualify for our program, we work with many other local partners to help address your debt in different ways. It only takes a few minutes to get started. Contact us today for a free consultation