Turbo Takeaways
- Hawaii residents face some of the highest living costs and debt burdens in the country.
- Debt relief programs like counseling, management plans, and settlement offer structured paths toward recovery.
- With professional guidance, residents can rebuild stability and achieve long-term financial peace.
Your Options To Get Out of Debt in Hawaii
The Aloha State is renowned for its scenic beauty and warm weather, especially throughout the winter months. This makes it a leading tourist destination for people around the world and a delight for residents year-round.
However, Hawaiians carry the highest debt-to-income ratio (DTI) in the entire United States. In 2025, Hawaii’s DTI stands at 2.03, meaning that for every dollar Aloha State residents earn, they owe double that amount in debt.
Whether you're dealing with credit card debt, medical bills, or other forms of financial obligations, keep reading to learn more about the most effective debt relief programs in Hawaii.
Here’s a look at the most popular ways Hawaii residents get help with their debt burdens:
Credit Counseling
For Hawaiians unsure of where to begin, credit counseling offers a great starting point. These advising sessions help residents of the Aloha Isles plan for financial success.
How It Works
Accredited credit counselors offer sound advice, along with valuable resources, to help consumers understand their options for overcoming debt.
Once you connect with an advisor practicing in the Aloha State, you’ll set up a time to discuss your credit history and current debts. Your counselor may also encourage you to take financial education courses offered through their organization or another source.
Pros
- Low cost for services
- Expert financial advice
Cons
- Doesn’t reduce or eliminate debt
- Ineffective unless you follow through and make a plan
Cost
You’ll typically pay a small fee for services. Many credit counselors operate under nonprofit organizations, offering low or no-cost assistance to those facing financial hardship.
Stats
- Over 30,000 credit counselors offer services and help consumers across the U.S.
Resources
Find a certified credit counselor through the Financial Counseling Association of America.
Debt Management
Partaking in debt management transfers the responsibility of repaying debts to a designated organization, enabling Hawaiian consumers to make consistent, on-time payments.
How It Works
Hawaiians who want a little help keeping up with multiple balances can benefit from the simplicity of making a single monthly payment to a debt management company.
Debt Management Plans (DMPs) are typically offered through a credit counseling organization. Once you enroll in a DMP, you’ll send funds to an account every month. The company then distributes your funds to each creditor, ensuring bills are paid in full and on time.
Pros
- Credit counselors may negotiate for lower interest rates or waived late fees
- Helps you avoid missed payments
Cons
- Often requires you to stop using credit cards
- Fees for each managed account
Cost
Since DMPs take over payments, companies typically charge between $25 and $40 per month for each account you enroll in their plan. You’ll also pay a startup fee of around $100.
Stats
- Although Hawaii’s median household income of $100,745 is one of the highest in the country, the Islands face more debt than most residents of the continental United States.
- Hawaiians carry an average consumer debt of $148,924, proving many residents face financial strain.
Resources
Discover how debt management programs work and determine if this is the right option for achieving your financial goals.
Debt Consolidation
Hawaii residents with multiple debts can also opt to consolidate using two different methods. Unlike a DMP, consolidation requires consumers to manage their own payments.
How It Works
Hawaiians can use a debt consolidation loan from a traditional or online lender, taking out a sum large enough to pay off all current debts and switching to a single payment on the new loan.
Another option for Aloha Staters is to open a zero-interest balance transfer credit card to move moderate debts to the new account.
Pros
- Loans simplify debts to a single payment
- Higher credit scores can secure lower interest rates
- Balance transfer cards can eliminate additional interest fees
Cons
- Lower credit scores make it difficult to secure a loan with a good interest rate
- Zero-interest period only lasts a short time (up to 18 months)
- Fees for interest could soar up to 30% on unpaid debt after introductory period
Cost
The cost of debt consolidation depends on your total balance. You may incur an origination fee on the new loan and a balance transfer fee to transfer debt from one card to another.
Stats
- Hawaii residents boast a relatively high credit score, with a state average of 732.
- Strong credit scores enable Hawaiians to secure more favorable loan terms.
Resources
Are debt consolidation loans a good idea? Read TurboDebt’s® take on this process.
Debt Settlement
Hawaiians facing overwhelming credit card and other unsecured debts often benefit from a settlement. This process allows you to reduce the total amount you owe and repay debts faster for less than your current huge balance.
How It Works
Aloha State residents can settle debt on their own by contacting creditors and asking for a reduced payoff amount. Hawaiians can also choose to work with a professional debt relief company that negotiates on their behalf.
With both methods, you’ll make a lump sum payment to each creditor and end your debt after saving enough funds.
Pros
- Reduces what you owe
- Helps you pay off debts faster
Cons
- Causes a drop in your credit score
- Higher risk of debt relief scams online and over the phone
Cost
Reputable debt settlement organizations don’t charge upfront fees. Only after you reach a settlement will the company collect fees ranging from 15% to 25% of your enrolled debt.
Stats
- Hawaiians hold some of the highest average credit card debt in the country, at $7,560 in 2024.
Resources
Dig deeper into the pros and cons of debt settlement through TurboDebt’s resource library.
Bankruptcy
Bankruptcy offers a last chance to resolve debts and repay creditors with the assistance of Hawaii’s court system. Experts recommend connecting with a bankruptcy attorney to help you through the process.
How It Works
Islanders typically file either Chapter 7 or Chapter 13 bankruptcy to sell assets or start a 3-5 year payment plan to end their debts.
Bankruptcy courts may waive certain debts due to financial hardships. However, certain items, such as child support, taxes, and student loans, must be repaid (with a few exceptions).
Pros
- Offers a clean financial slate
- Resolves certain debts
Cons
- Impacts credit history for up to 10 years
- Includes attorney fees
Cost
Bankruptcy costs primarily go to an attorney, typically ranging from $5,000 to $10,000 for complex cases. You’ll also pay small filing fees for court documents.
In some cases, Hawaii residents can access low- or no-cost legal services through various organizations.
Stats
- According to the U.S. Court System (PDF), 1,178 residents of the Aloha State filed for bankruptcy as of June 2025.
Resources
What is life like after bankruptcy? Read more from TurboDebt’s resources.
What You Need To Know About Debt in Hawaii
Below are some key data points about how the Aloha State handles debt:
Statute of Limitations on Debt Collections in Hawaii
Hawaii’s statute of limitations on debt collections protects consumers and ensures businesses have a certain amount of time to pursue legal action against unpaid debts. While some states offer varying time periods for different types of debt, the Aloha State offers uniform statutes lasting six years.
Here’s a breakdown of each type of debt covered under Hawaii’s statute of limitations:
| Type of Debt Agreement | Length of Time Collectible |
|---|---|
| Written Contracts | 6 years |
| Promissory Notes (mortgages) | 6 years |
| Open-Ended Accounts (lines of credit) | 6 years |
| Oral Agreements | 6 years |
| Medical Debt | 6 years |
Student and Other Loan Forgiveness Programs in Hawaii
Hawaii residents carry some of the highest student loan debt in the country, with an average of $38,929 per graduate.
Islanders seeking assistance with student loans may benefit from programs offered by the state and federal government, including:
- Healthcare Education Loan Repayment Program (HELP): This program seeks to attract and retain physicians to cover shortages of medical professionals across the islands. Qualifying physicians in a host of disciplines may earn up to $50,000 for loan repayments.
- Public Service Loan Forgiveness: This program forgives the balance on direct loans for individuals working in federal or state government positions.
However, these programs aren’t a fit for many Aloha Staters. If you’re struggling with student debt, it may be a good time to consider debt relief options like debt settlement, a DMP, or a debt consolidation loan.
Additionally, do-it-yourself methods like debt snowball and avalanche offer a structured plan to pay off student loan debt if you can commit to a plan independently.
Resources for Financial Assistance in Hawaii
Hawaiians facing economic hardship can pursue the following resources for financial assistance:
- Temporary Assistance for Needy Families (TANF): The TANF program aids low-income families by providing time-limited cash support.
- Supplemental Nutrition Assistance Program (SNAP): Hawaii’s SNAP benefits provide funds for nutritious groceries.
- Med-QUEST (Quality, Universal Access, Efficiency, Sustainability, Transformation): Hawaii’s Medicaid program provides medical coverage for eligible Hawaii residents, including children, pregnant women, low-income adults, and disabled individuals.
- Aloha United Way 211: Hawaii’s Aloha United Way supports mothers and single-parent families by providing financial assistance, plus access to maternal health programs and youth services.
- Hawai’i Early Childhood State Plan: This program offers child development services through center and home-based settings to prepare children for school.
Although Hawaii stimulus checks provided aid for many families and individuals during and after the COVID-19 pandemic, no new checks are planned for 2025.
Get Professional Help Paying Off Your Debt
Hawaii residents don’t have to struggle with debt. TurboDebt® can help you explore the best debt relief options available in Honolulu or throughout the islands.
As a top-rated, certified debt relief provider, TurboDebt is ready to help you on your journey toward financial freedom. We work with our clients to create a customized, affordable plan for debt relief.
If you’re struggling with over $10,000 in unsecured debt, don’t wait. Take advantage of our free consultation today! Reclaim your aloha spirit and learn how we can help you take your first step toward debt-free living.