Turbo Takeaways
- Georgia households face growing financial pressure as living expenses and credit card balances rise.
- Professional debt relief programs help residents regain control with structured repayment options.
- The right debt strategy can reduce stress and pave the way toward financial recovery.
Effective Relief Options To Get Out of Debt in Georgia
As consumer debt reaches new heights, residents of the Peach State struggle to meet their monthly expenses and save for the future. Credit card debt is at an all-time high as individuals and families struggle to cover essentials like car payments, groceries, and rent or mortgage by using their cards.
In fact, Atlanta ranks eighth among U.S. cities with the highest number of people in financial distress. Harsh facts like these make it clear that debt relief is something many Georgians can no longer live without.
Fortunately, debt relief programs are available for residents strapped with thousands of dollars in debt that seem impossible to escape.
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
Peach State residents can connect to a certified credit advisor at various nonprofit and private organizations throughout the state for personalized advice and financial education.
Pros
- Affordable or free sessions available for low-income residents
- Offers guidance to rebuild credit and manage future debt
- Provides access to educational resources on financial literacy
Cons
- Does not reduce or erase existing balances
- Results depend on following the financial plan consistently
- Some agencies charge initial setup fees
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 in Georgia involves planning to organize monthly debt payments through a nonprofit or private organization.
How It Works
Georgians who sign up for credit counseling can typically set up a debt management plan (DMP) through the same organization.
Pros
- May help negotiate lower interest rates or waive fees
- Improves payment consistency and credit score over time
- Combines multiple debts into one manageable payment
Cons
- Requires commitment to stop using credit cards during the plan
- Monthly service and account management fees apply
- Missing payments can cancel program benefits
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 $42,026, one of the highest in the United States.
Resources
Read more about debt management programs and how they work from the TurboDebt® resource library.
Debt Consolidation
Consumers can consolidate debt independently or through a traditional loan with a bank or credit union.
How It Works
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
- Simplifies repayment with a single loan or card balance
- Can help secure a low, fixed interest rate and repayment terms (often 3-5 years)
- Balance transfer cards can temporarily eliminate interest
Cons
- Requires good credit to qualify for low-rate loans
- High post-promo interest rates on balance cards can offset savings
- Loan origination or transfer fees add to total repayment cost
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 credit score is 686, falling into the “good” category of credit ratings.
- A strong credit score suggests many residents are likely to qualify 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 substantial balances from unsecured debts, such as credit cards and personal loans.
How It Works
Debt settlement allows Georgians to negotiate with creditors and pay less than they owe, offering a faster path to financial relief.
The factors most often cited why borrowers eventually seek out debt relief options like debt settlement 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.
Georgians who choose debt settlement can reduce their total balances by up to half, making it one of the most effective ways to start rebuilding their wealth.
Pros
- Can reduce total balances by up to 55% before fees
- Shortens repayment timelines compared to traditional plans
- Provides an effective alternative before filing for bankruptcy
Cons
- May temporarily lower credit scores during negotiation period
- Not all creditors agree to settle outstanding debts
- Must steer clear of unverified or fraudulent settlement companies
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% to 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 $7,925.
Resources
Brad Reichert, founder and managing director of Reichert Asset Management LLC, explains why many Georgia consumers seek professional help to manage their debts. “The factors most often cited why borrowers eventually seek out debt relief options like debt settlement 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 strategy 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 more about the pros and cons of debt settlement before you decide on the best solution for your financial situation.
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
When no other debt relief method works, filing for Chapter 7 or Chapter 13 Bankruptcy helps Georgians eliminate or restructure debt through federal court protection. Georgia’s bankruptcy courts are divided into the Northern, Middle, and Southern districts.
Pros
- Legally clears or reorganizes some or all nsecured debts
- Offers a fresh financial start for financial hardship
Cons
- Stays on credit reports for up to 10 years
- Legal and filing fees can be expensive
- Not all debts qualify for discharge (like student loans or taxes)
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 28,963 bankruptcies filed in 2024 (PDF).
Resources
Discover what happens next after you file for bankruptcy and how it can affect your financial journey.
What You Need To Know About Debt in 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 Contracts | 6 years |
| Promissory Notes (such as mortgages) | 6 years |
| Open-Ended Accounts | 4 years (6 years for credit cards) |
| Oral Agreements | 4 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 (PDF) in 2020, this statute poses a significant challenge for many Peach State residents who need assistance paying substantial 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 struggle to repay their school debts in addition to their monthly living expenses.
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 the Georgia stimulus checks ended in 2022, it’s essential to explore other opportunities and organizations that offer financial assistance.
Here’s a list 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 companies 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 TurboDebt reviews on sites like Google and Trustpilot, our team of experts has proven invaluable for consumers facing huge debt balances. Thousands of Georgia residents have already chosen TurboDebt for trusted debt relief services.
Contact our team of experts today for a free consultation and start your journey toward financial freedom!