Delaware Debt Relief

In a Nutshell

When you’re searching for debt relief in Delaware, it’s important to know your options. Whether you’re looking to tackle credit card debt, medical debt, payday loans, or more, TurboDebt can help you identify the best course of action.

Delaware is best known as the first state to ratify the U.S. Constitution. It’s also known as the credit card capital of the U.S., as most of the 25 largest credit card companies are located in the state. It's also a business-friendly state because of its favorable tax policies. However, citizens of the second smallest state in America have their fair share of debts requiring solutions.

Delaware debt relief is a means of attaining a debt-free life through consolidation, settlement, or a combination of lower interest rates, affordable monthly payments, and a waiver of late payment fees.

Keep reading to get the full picture of debt relief options and financial hardship assistance in Delaware.

Delaware's Economic Picture

 “Small businesses in Delaware contribute significantly to the state’s economy, and they represent a significant share of the state’s jobs statistics,” explains Brad Reichert, debt expert and founder and managing director of Reichert Asset Management LLC.

“For many Delaware citizens, owning a small business is an exciting and dependable way to provide for their families, acquire entrepreneurial skills, and increase their socio-economic status,” Reichert adds.

The First State has experienced unemployment levels similar to the rest of the nation, with November 2024 averaging 3.9%. 

How Does Delaware Debt Relief Work?

Delaware debt relief offers residents several key options to help alleviate the burden of debt and let them work towards living a debt-free life. Programs help you achieve this by reducing loan interest rates, lowering monthly debt payments, waiving late payment fees, or in certain qualifying circumstances, forgiving debt.

By enrolling in a personalized debt relief program, Delaware residents can tackle debt without forgoing their financial needs, as flexible debt repayment terms align with each unique debt-to-income ratio (DTI).

Delaware Debt and Finance Statistics

The following significant debt and finance statistics are specific to the state of Delaware:

Average Consumer Debt

According to Federal Reserve data, Delaware residents owe an average of $62,870 in consumer debt. This includes both secured and unsecured debts from mortgages, auto loans, student loans, and credit card balances. 

Credit Card Debt

Residents of Delaware owe an average credit card debt of $7,598.

Mortgage Debt

The average value for a home in Delaware was $382,867 as of December 2024, up 2.3% from the previous year. Increasing home prices have driven mortgage debt higher in Delaware and across the nation. 

Student Loan Debt

Delaware residents owe an average of $38,404 in student loans, with the majority of borrowers under the age of 35. 

Household Debt

In 2024, Delaware residents experienced a moderately high household debt-to-income ratio of 1.583. This means residents owe about $1.58 for every dollar they make.

Bankruptcy

In 2024, a total of 2,752 First State residents filed for bankruptcy. This represented a 29% increase from the previous year. 

Credit Scores

In 2024, the average credit score in Delaware was 705. A credit score of 705 is considered a "good" credit score and is typically effective for accessing lower-interest loans from most large lenders.

How TurboDebt Helped Delaware Residents with Debt in 2023

TurboDebt worked with 948 clients from the First State in 2023. Of these, 326 enrolled in our debt relief program, with an average enrolled debt of $23,393. This led to a total enrolled debt of $7,626,139 in the state.

Top Types of Debt to Get Relief from in Delaware

TurboDebt’s programs offer relief from several top types of debt that burden Delaware residents. With customized debt relief options, Delawareans can benefit from working with us as they continue their journey to pay off unsecured debts. Our debt relief program covers the following top types of debt:

Credit Card Debt

Although Delaware is the capital of credit cards and incentives, its residents still suffer from credit card debt. Interest rates on cards are still sky-high, like in other parts of the country, and late payment fees that apply to past-due accounts are also on the rise. Clearing credit card debt can become a challenge if you don't break the cycle of making the minimum payments, or worse, making a late payment.

At TurboDebt, we're passionate about helping you pay down your credit card debts, payday loans, and other unsecured credit lines. We can go over all of the best options available to you, which may include debt management plans that will help you clear credit card debt with consistent monthly payments to a savings account, which will be used to pay creditors.

Divorce Debt

Debt is regarded as matrimonial property in Delaware. This means that a Delaware judge will determine how property will be divided equitably among spouses when they divorce, in what is believed to be a fair distribution, based on earnings ability and needs, regardless of who owns it. This may result in you accumulating divorce debt if your ex-spouse had personal loans in both your names or if your names were both on a mortgage loan. 

Divorce is hard enough without the threat of dealing with debt collection agencies and possible foreclosures. TurboDebt can help you deal with indebtedness after a divorce by matching you with the right financial solution. We can also get you started with the best debt relief program based on your unique financial situation.

Business Debt

Many businesses are incorporated in Delaware because of its low tax burden and its strict privacy laws. However, not all businesses stand to benefit from the liberal tax and legal provisions in Delaware.  

At TurboDebt, we help you tackle your business debt through a debt settlement plan. This debt relief option allows for a lump sum payment of your business debt and forgiveness of up to 50% of the total debt balance. This can be a great option to avoid liquidation to pay off debt.

Medical Debt

Delaware residents owe an average of $2,426 in medical bills, with 17.37% in collections. Many within the state are also uninsured. This exposes residents to the risk of accumulating medical debt whenever they face medical complications or are in need of urgent medical care.

Medical debt is one of the most common forms of debt we enroll in our program, and we're equipped to offer a unique debt relief option for each individual. Get in touch to see how much we can save you today.

Homeowner Debt        

High unemployment rates during the COVID-19 pandemic have led to an increase in mortgage delinquency rates as residents had no means of income to pay for increased mortgage costs. The rapidly rising interest rates on loans and mortgages have made this financial situation worse, resulting in delinquent homeowner debt and possible foreclosures.

Although debt relief doesn't apply to secured debts like mortgages, owning a property can also land you in unsecured debt from substantial repairs and maintenance. Don't let your outstanding balances make homeownership a burden. Contact our experts at TurboDebt to take advantage of our advising, strategic planning, and debt relief opportunities.

Retirement Debt

Retirement life in Delaware is bound to be easy since you won’t be paying for a state and local sales tax for items you purchase or any income tax on social security benefits at the state level. However, residents are expected to need over $700,000 to comfortably retire in the First State.

At TurboDebt, we can help you make a plan to pay off your retirement debt, even while living on a fixed income.

Delaware Debt Relief Options

The following debt relief options are available to Delaware borrowers depending on their creditworthiness, credit score, debt-to-income ratio, and type of debt:

Debt Management Programs

Debt management programs (DMPs) help eliminate unsecured debt like credit card balances by reducing interest rates. Some debt relief organizations offer this option, and borrowers are expected to make consistent monthly payments for  3 to 5 years, on average.

DMPs work best by considering your debt-to-income (DTI) ratio when calculating the monthly payments. Both borrowers and creditors must agree to the DMP for it to work.

Debt Consolidation Loans

Debt consolidation loans allow you to enroll your existing loans into one larger loan and pay it off, oftentimes at a lower interest rate. This debt relief option gives you the chance to reduce interest rates by effectively “refinancing” all of your smaller high-rate debts into one single lower-interest loan. 

Once you’re approved, you use the proceeds from this new loan to pay off multiple high-interest accounts, thus reducing your various monthly payments to one and avoiding increasing interest rates and late payment fees due to missing a payment on one of these various accounts.

Delawareans with good credit scores stand to benefit the most from this debt relief option, but they should be aware of the extended monthly payments that come with the larger loan, as the longer repayment period may lead to a higher amount of interest paid over a longer repayment period.

Debt Settlement

Debt settlement plans involve negotiating with creditors to reduce the total amount of what you owe, sometimes by up to 50%. You can complete negotiations on your own or work with an accredited debt settlement company that works with creditors on your behalf. Once the negotiation is completed, you'll make affordable monthly payments into an account set up by the organization that handles your debt payoff.

When you’re pursuing a settlement plan, consider the credibility of the debt settlement company by checking reviews through Trustpilot, Google, and other verified sources. A reputable company won't ask for fees upfront to settle your debts and typically offers a free initial consultation to learn more about your financial situation.

In fact, you can read thousands of 5-star TurboDebt reviews on these sites from clients who've achieved freedom from debt through our services. 

Credit Counseling

Credit counseling agencies connect borrowers with qualified credit counselors. Programs from non-profit organizations and some private firms teach participants about money and debt management, budgeting for your income, and choosing a debt management plan based on your DTI ratio. You’re also eligible to receive help in accessing a free copy of each of your three credit reports by picking this debt relief option.

Bankruptcy

Bankruptcy offers consumers a clean slate from debt, depending on the type of bankruptcy you file. Chapter 7 bankruptcy can be most effective for unsecured debts, which are settled by liquidating your nonexempt properties, like a second home, or your automobile(s), to help clear your debt.

Chapter 11 bankruptcies are for businesses that are deep into debt. They can often help companies reorganize their debt payment plan without affecting daily business operations.

Lastly, Chapter 13 bankruptcies are typically effective for businesses or residents with consistent monthly incomes that can sustain debt payments over a minimum amount of time. When you file for Chapter 13, you'll select and stick to a 3-5-year repayment plan to avoid liquidating nonexempt properties.

Consult with a reputable law firm for legal advice on whether to consider bankruptcy as a solution, as the residual effects of bankruptcy will remain on your credit report for 7 to 10 years, lowering your creditworthiness during that entire time.

Debt Forgiveness

Debt forgiveness programs are typically funded by the state government or national government and are used to cancel most, if not your entire debt balance. To qualify for debt forgiveness, you must satisfy the requirements of the available debt forgiveness program.

Existing debt forgiveness programs include the following;

• Student loan forgiveness for teachers who serve for a number of years in a high-demand area
• Federal student loan forgiveness for certain US Military service members
• Other public service related loan forgiveness
• HUD mortgage assistance

Debt and Financial Hardship

Although there are no new stimulus checks for Delaware planned for the future, low-income families and individuals can access the following debt and financial assistance programs to meet their needs:

Temporary Assistance Programs

The General Assistance Program Fund is a state-run program for low-income residents who aren’t eligible for social security benefits and federally funded projects like the TANF.

The Refugee Cash Assistance program helps low-income, homeless, and asylum-seeking refugees with medical care, cash assistance, and social services.

Temporary Assistance for Needy Families (TANF) is Delaware’s main cash assistance fund for low-income, jobless residents looking for work. The program lasts a maximum of 36 months, but you must complete 30 hours of work-related activity every week to qualify for the cash assistance.

State Health and Human Services

The state of Delaware offers the following medical assistance programs:

• Qualified Medicare Beneficiary Program: This pays for medical premiums and certain deductibles for families below the 100% poverty limit.
• Chronic Renal Disease Program: This program aids residents with end-stage renal disease living below the 300% federal poverty level.
• Delaware Healthy Children Program: This program provides affordable health insurance to uninsured kids.
• Delaware Prescription Assistance Program: This service is a health care program for the elderly and disabled that pays for their prescription medicines exceeding 40% of their income or if their income is 200% below the federal poverty level.
• Delaware Medicaid: This medical aid program is available to low-income families and qualifying residents who are aged or disabled.
• Long-Term Care Medicaid Programs: These programs offer long-term care services, including the cost of living in a nursing home.

Child Care

Child Care Services are offered for eligible kids under 13 years of age whose family income is below the federal poverty level. Kids with special needs above 13 years old can also qualify for the program.

Shelters for the Homeless

The state of Delaware operates several home shelters in a bid to eliminate homelessness and provide shelter to low-income families and residents without a place to live.

You’re advised to call the home shelter to confirm the availability of beds before visiting.

Free Transportation Services

Delaware's Medical Transportation Service provides eligible members with emergency and non-emergency medical transportation services. DART First State also runs free bus rides for blind residents and other people with disabilities.

Delaware Debt Relief Solutions with TurboDebt

Debt relief programs are an effective way of achieving a debt-free life. Once you enroll in a program, you can relax knowing you have a plan for affordable monthly payments. Regardless of the option you choose, be diligent when pursuing debt relief so you can choose a legitimate company and avoid any potential scams.

TurboDebt is your reputable debt relief company with over 17,000 5-star reviews across Trustpilot and Google. Our plans are tailored to your unique financial needs and save our customers thousands of dollars before fees. Learn more about TurboDebt's options today with a free consultation.