While consumer debt rises to new heights, residents of the Peach State struggle to meet monthly expenses and save money for the future. Credit card debt has never been higher as individuals and families try to meet basic needs like making car payments, buying groceries, and paying rent or a mortgage by charging it to their cards.

In fact, Atlanta ranks 8th among cities in the U.S. with the most people in financial distress. Harsh facts like these make it clear that debt relief is something many Georgians can no longer live without.

Fortunately, solutions like credit counseling, debt management, and debt settlement are available for residents strapped with thousands of dollars in debts that seem impossible to escape.

Brad Reichert, founder and managing director of Reichert Asset Management LLC, shares why many Georgia consumers consider professional help to handle their debts. “The factors most often cited why borrowers eventually seek out debt relief options like debt settlement or a debt management plan (DMP) are a significant decrease in income, a large unexpected expense (such as a medical bill), or spending that outpaces the household’s income each month,” Reichert explains.

Reichert recommends establishing a household budget as a critical first step toward managing existing debt to prevent it from becoming a larger issue. He also suggests setting up an emergency reserve fund with at least three months' worth of living expenses, should you need it after an unexpected life event.

Read on to learn more about top debt relief options in Georgia.

Your Most Effective Options To Get Out of Debt in Georgia

Credit Counseling

A credit counseling organization is a good place to start for sound, unbiased advice on financial principles, such as how to handle debt and improve your credit profile.

How It Works in Georgia
Peach State residents can connect to a certified credit counselor at various nonprofit and private organizations throughout the state for personalized advice and financial education.
Pros
Credit counseling services are offered to low-income residents at little or no cost, and fees are generally nominal for other clients.
Cons
While credit counselors offer advice, enrolling in a credit counseling program doesn’t clear any portion of your debt.
Cost
Credit counseling services may charge an initial fee when you enroll in a program. However, many organizations heavily discount or provide free counseling to those struggling with financial hardship.
Stats
While credit counseling is an option for those struggling with debt, more consumers have chosen debt settlement to clear outstanding balances in the past decade.
Resources
The Financial Counseling Association of America connects consumers with local counselors and offers resources about different types of debt.

Debt Management

Debt management programs in Georgia involve planning to organize monthly debt payments through a nonprofit or private organization.

How It Works in Georgia
Georgians who sign up for credit counseling can typically set up a debt management plan (DMP) through the same organization.
Pros
This method helps you make consistent monthly debt payments, which can improve your credit score if it’s taken a hit from missed payments on recurring balances.
Cons
DMPs come with fees for each debt account you manage through the organization.
Cost
Debt management organizations usually charge an initial fee to start a plan. They’ll also charge a small monthly fee for each account you’re paying off.
Stats
Student loans often figure prominently in the administration of debt management plans. Georgians owe an average student loan debt of $40,800, one of the highest in the United States.
Resources
Read more about debt management plans and how they work from TurboDebt’s resource library.

Debt Consolidation

Consumers can consolidate debt independently or through a traditional loan with a bank or credit union.

How It Works in Georgia
Georgia residents may opt to take out a zero-interest balance transfer credit card to pay off small to moderate debts in a short amount of time. For bigger balances, Georgians can take out a debt consolidation loan large enough to cover their current high-interest unsecured debts.
Pros
Zero-interest cards allow consumers to catch up on payments without adding interest charges and other purchase or cash advance fees to their account balances. A consolidation loan helps streamline debts into a single account to repay, often with a fixed (3-5 year) repayment term and a low, fixed interest rate.
Cons
Balance transfer cards can come with heavy interest fees in terms of the card’s standard APR for purchases or cash advances on any remaining balance. This happens if you don’t pay off your original transferred balance within the 0% introductory period (typically 12-18 months).
Cost
A zero-interest balance transfer credit card typically gives you a year to 18 months interest-free. Afterward, you could pay up to a 36% APR on any unpaid balances remaining on your card. Debt consolidation loans with a fixed rate and fixed repayment term simply cost more in interest the longer the term you choose to repay the loan amount.
Stats
Georgia’s average FICO credit score is 659, falling into the “fair” category of credit ratings. This suggests many residents could have some trouble qualifying for lower interest rates when pursuing a consolidation loan.
Resources
Learn how debt consolidation programs work and decide if it’s the right debt relief option to fit your financial situation.

Debt Settlement

Settling with creditors is often the quickest way to pay off big balances from unsecured debts, and these debt relief programs have proven to be among the most effective ways for Georgia residents to start building wealth again.

How It Works in Georgia
Georgians who choose debt settlement can reduce their total balances by up to 55%.
Pros
Consumers often pay off debt faster and for less through this method.
Cons
Settling debt can negatively impact your credit score for months or even years afterward.
Cost
Debt settlement companies are only allowed to charge fees once your creditors agree to charge off the unpaid balance of your debt after you’ve made the lump sum payment you’ve negotiated to pay them. These fees range from 15-25% of your total enrolled debt.
Stats
-Large credit card balances are among the biggest reasons consumers choose debt settlement.
-Georgia residents carry an average credit card debt of $5,493
Resources
Read a step-by-step guide to debt settlement from the American Association for Debt Resolution.

Bankruptcy

Georgians who can’t find another way to relieve debt can file for bankruptcy and discharge their debts through the state court system.

How It Works in Georgia
Georgia’s bankruptcy courts are divided into the Northern, Middle, and Southern districts.
Pros
Bankruptcy allows you to get a fresh financial start while clearing some or all of your debts.
Cons
Declaring bankruptcy negatively affects your credit for up to ten years, making it difficult to secure new loans.
Cost
Bankruptcy involves varying costs and court fees depending on how you file. You’ll also owe fees to your bankruptcy attorney.
Stats
Georgia saw a rise in cases, with 27,833 bankruptcies filed in 2023.
Resources
-Northern District of Georgia 
-Middle District of Georgia 
-Southern District of Georgia

What You Need To Know About Debt in the State of Georgia

Statute of Limitations on Debt Collections in Georgia

Georgia’s Statute of Limitations on Debt protects consumers from creditors seeking legal action on debts. These statutes limit how long a creditor can pursue the recovery of a debt in court from a consumer who fails to pay. The smaller the number of years, the better for the consumer.

Type of Debt Agreement Length of Time Collectible
Written Contracts6 years
Promissory Notes (such as mortgages)6 years
Open-Ended Accounts4 years (6 years for credit cards)
Oral Agreements4 years

Statute of Limitations on Medical Debt in Georgia

Medical debt typically falls into a separate category under the Statute of Limitations. In Georgia, creditors can pursue unpaid medical debt for up to 6 years.

Failing to pay back medical debt can result in calls from debt collectors and may significantly damage your credit score. However, with 16-20% of Georgia residents carrying medical debt in collections in 2020, this statute is challenging for many Peach State residents who need help paying huge medical bills.

Student Loan Forgiveness in Georgia

With student debt averaging over $40,000, Georgia grads owe more in student debt than almost any other state. With higher student loan payments, some residents are challenged to pay back school debts on top of monthly living expenses.

Young adults who’ve been part of the foster care system can access funds for technical training.

The Georgia Post-Secondary Tuition Waiver Program pays for tuition, fees, and housing when applicable if qualifying candidates attend a school in the Technical College System of Georgia.

Georgia residents who’ve worked in public service positions may qualify for student loan forgiveness programs through the federal government.

Resources for Financial Assistance in Georgia

While the Peach State doesn’t offer specific government debt relief programs, residents facing financial hardship may qualify for several assistance programs. Since Georgia stimulus checks ended in 2022, it’s important to look for other opportunities and organizations granting financial help.

Here’s a list of some of the main assistance programs available in the state:

  • Temporary Assistance for Needy Families: Georgia’s TANF program provides monthly cash assistance for families in need throughout the state. Participants must meet certain requirements, including employment and children living in the home. 
  • Cash Assistance Cards: The state provides a cash benefit of up to $350 for Georgia Gateway recipients enrolled in Medicaid, PeachCare for Kids, TANF, or SNAP. This program also provides funds for children in foster care and kids whose parents receive adoption assistance. 
  • Low-Income Home Energy Assistance Program: The LIHEAP program in Georgia offers financial assistance in heating and cooling homes for eligible low-income residents.  
  • Department of Early Care and Learning: Georgia’s DECAL programs include help with child care, meals, and resources for needy families.

For a comprehensive list, read more about financial assistance programs in Georgia.

Get Professional Help Paying Off Your Debt

Although Georgia offers opportunities for financial assistance, only some may qualify. It’s important to find a way to pay off debts while saving and budgeting for monthly expenses. Professional debt relief services in Georgia may be the most effective way to manage outstanding balances and pay off debts.

At TurboDebt, we connect consumers with a debt relief plan that meets their needs, helping them overcome debt struggles and providing resources for financial literacy.

With thousands of five-star reviews on sites like Google and Trustpilot, TurboDebt has proven invaluable for consumers facing huge debt balances. Over 11,000 Georgia residents have already chosen TurboDebt for trusted debt relief services.

How TurboDebt Helped Georgia Residents With Debt Relief Last Year

Contact our team of experts today for a free consultation and start your journey toward financial freedom!