Idaho Debt Relief
15 MIN READ
Published April 07, 2023 | Updated May 04, 2023
In a Nutshell
If you’re struggling with debt in Idaho, know that you are not alone. At TurboDebt, we find many residents who need relief from medical bills, credit cards, loans, and more, and that’s why we’re here to help. Whether it be debt consolidation, settlement, or another form of relief, our free consultation will help examine your financial situation so that we can recommend the best solution.
Idaho's average household debt-to-income ratio stood at 2.073 as of 2022. That is two dollars owed for every dollar made, among the highest in the nation. A debt ratio like this limits your consumption options, negatively affects your credit score, and can quickly spiral out of control without an intelligent debt management plan.
Seeking debt relief is one such measure, and below, we dive into all you need to know about debt relief options in Idaho and how they can set you on the path to a debt-free life.
Idaho's Economic Picture
With a population of 1.9 million, Idaho Falls had a per capita income of $31,509 by 2021. During the same period, her median income stood at $63,377, while the average income per household was $83,777. Approximately 5.7% of its households make over $200,000 annually, while 11% of its citizens live in poverty.
Idaho has enjoyed a downward trend in unemployment since September of 2022. Idaho's credit score increased by two points from 2021 to 2022 and ranks as one of the higher scores in the U.S.
How Does Debt Relief Work in Idaho?
Debt relief helps you regain control of a runaway debt situation. A debt relief company analyzes your indebtedness and recommends a debt relief program. This may include renegotiating to reduce your interest rates or consolidating your debts.
You can use debt relief services for both secured and unsecured debts.
Debt and Finance Statistics Specific to Idaho
Here are some of the top debt and finance statistics specific to the state of Idaho:
- Idaho's average debt in 2022 was $114,695
- Idaho's average credit card debt in 2022 was $5,213
- In 2021, Idaho's auto loan balance was $22,353
- Idaho's average outstanding mortgage debt in 2020 was $171,193
- Idaho's average outstanding student loan debt is $34,000
- Idaho's average household debt in 2022 was $58, 090
- Residents of Idaho were anticipated to file 1,440 bankruptcies in 2022
- Idaho's average income was $73, 777 in 2022
- Idaho's average credit score in 2022 was 727
Average Consumer Debt
Idaho's average consumer debt was $114,695 in 2022, an increase from $104,944 in 2021. This included all personal debts.
Credit Card Debt
Idaho's average credit card debt in 2022 was $5,213, below the national average of $6,194.
Idaho's outstanding auto loan balance in 2021 was an average of $22,353, among the highest gains in the post2020 year.
As well as auto loans, Idaho mortgage debt gains were among the highest in the nation, averaging $171,193 in outstanding mortgage loan balances. On average, each household spends $1,150 on monthly mortgage payments, roughly 20% of its monthly income.
In February of 2023, the average home value dropped 3.1% to $430,508, still a high number, making it hard for first-time buyers to find housing at a reasonable value.
Idaho graduates owed $33,116 in student loan debt in 2022, ranking the Gem State 39th in the U.S. However, that still leaves 214,000 graduates indebted and at risk of defaulting on their payments.
In 2022, 1,521 Idahoans filed for bankruptcy. Most individuals file for either Chapter 7 or Chapter 13, which liquidate and reorganize assets. Of these filings, 1,326 were for Chapter 7, and 179 were filed for Chapter 13.
In 2022, Idaho's credit score was 727, a good score according to FICO. FICO rates credit scores of 670 to 739 as good. You may qualify for bigger credit and fairer interest rates if your credit score is within that range or better.
Identity Theft in Idaho
Idaho ranks 37th nationally in identity theft reports, with over 1,400 reports yearly accounting for 13% of all fraud-related cases.
The most common targets for identity theft include the elderly, the sick, children, and even those deceased. Identity thieves do it to commit credit card fraud, bank fraud, phone, and utility fraud, loan or lease fraud, or even tax fraud.
Be vigilant against identity theft since it may cause devastating financial loss and even compromise you legally.
Idaho Banking and Tax Information
Idaho is served by 11 banks, with total assets of over 10 billion as of 2022.
To open a bank account, you need the following:
- Any two of a passport, state-issued driving license, or a valid institution-issued ID.
- 1-20 or DS-2019
- 1-94 card
- $25 minimum deposit
- Idaho levies the following taxes on its resident:
Income tax is levied on all state residents who qualify to pay federal income taxes. Non-residents and part residents are liable for Idaho income tax if they made part of their money in Idaho. The rate of graduates is from 0% - 6.5%.
- Sales tax at 6%
- Property taxes
- Capital gains taxes
For all deaths after 1st January 2005, Idaho no longer levies estate or inheritance tax.
Internal Debt Statistics from 2022
During 2022, TurboDebt helped a total of 438 clients. Our debt relief company enrolled 167 of those clients into an Idaho debt relief program, with a total enrolled debt of $3,775,285. Each client had an average client enrolled debt of $22,606 and saved about 46% on average before fees.
Top Types of Debt to Get Relief from in Idaho
Outside of the most common types of debt residents deal with, payday loans can be a significant source of debt for Idaho residents. This form of debt can be challenging to manage due to its high-interest rates and short repayment terms. Otherwise, here are the types of debt to get relief from in Idaho:
Credit Card Debt
Credit cards help you make ends meet, but the debt can easily get out of control. Credit cards carry a high-interest rate and are mainly used to fund consumer expenditure, which creates no value of its own. The proper way to manage credit card debt is to pay off the entire statement balance in full every month.
However, with average credit card debts in Idaho over $5,000, it’s likely some Gem State residents fall behind sometimes and need help.
At Turbo Debt, we offer several debt relief services to help Idaho borrowers clear their credit card debt and work towards living debt free.
Divorce often has a destabilizing effect on finances, sometimes long-term. Idaho, Nampa is a community property state. That means you are liable for debts acquired by you and half the debts jointly acquired during the marriage.
Divorce debt usually includes credit card debt, mortgage, medical debt, tax liabilities, and auto loan debts. Coupled with what divorce settlement court may make against you and legal fees, you may be overwhelmed unless you take quick action.
Turbo debt relief can help you reduce divorce debt's negative impact on your financial situation or help get you in touch with a nonprofit organization that might be able to assist otherwise.
Ideally, business debt should make you enough money to eventually pay it off with a profit. However, it is not always the case, and it becomes necessary to stave off the debt before it bleeds the business to death.
Turbo Debt helps you negotiate debt with your creditors, helping you secure favorable terms that may help keep your business afloat.
Pocatello, Idaho, ranks eighth in medical indebtedness at $2,832, over a third of the average monthly income. Senior citizens endure the most of this debt, with an average debt of $ 17,510.
Billing practices in Idaho can make payments difficult for patients. For instance, a medical facility can sue you for their bill and legal fees. The attorneys can sue you in a process that raises legal fees higher than the original medical bill.
Settling medical debt through a service like Turbo Debt is a quick way to escape the mess.
Monthly mortgage debt increased by 7.3% across the U.S. from 2021 to 2022. This accounts only for the mortgage and interest. Property taxes and homeowner association charges run this figure up. In an uncertain financial situation, homeowner debt may get out of control and threaten home ownership.
Turbo Debt is a provider of debt relief in Idaho and may help renegotiate with your debt collectors to help you get out of debt.
With an annual cost of living of 48,578, Idaho retirees are estimated to require over $700,000 in retirement savings after social security to live comfortably on a fixed income. Saving that much can challenge residents already living in debt. Unexpected circumstances like high medical bills can also bring retirees into debt.
TurboDebt offers solutions to aid retirees in managing outstanding balances to regain their lifestyle and start saving again.
Options for Debt Relief in Idaho
If you’re struggling with personal loans, credit card debt, or debt collection, it’s essential to know your options.
Here are some debt relief solutions in Idaho that can help you get a grip on your financial situation:
Debt Management Programs
Debt management plans are offered by for-profit companies in addition to non-profit credit counseling agency and help you consolidate your credit card loans into a manageable lot.
When you opt into the program, the agency analyzes your debt situation, finds out what you can pay, and negotiates with your creditors for a lower interest rate and manageable repayment schedule. You make this single payment to the debt counseling agency.
Debt management programs make it easier to repay debt and get collectors off your back. However, this option only works for unsecured debts like credit card loans. Also, you must commit to closing your line of credit until you get out of debt.
Debt Consolidation Loans
A debt consolidation loan lets you consolidate all your loans into one, with the potential for lower interest, monthly repayment, or even both. Rather than pay off several loans, you only need to keep up with one, simplifying your financial life.
You can consolidate your debts using a secured loan like a home equity loan or an unsecured loan like a balance–transfer credit card.
Debt consolidation may make your loan cheaper. Assuming four separate loans totaling $10,000 at 20% interest, you would pay $1000 monthly to clear it in 12 months. If, however, you consolidated the debts into one loan at 15% interest, you only need a monthly payment of $958 over the same period.
Debt settlement is an agreement with your creditors to let you pay less than what you owe on the condition that you pay up in full. For example, you may negotiate to settle a $15,000 for $10,000. You can negotiate on your own or have a debt relief company negotiate on your behalf for a fee.
It is possible to lose more than you save with debt settlement companies in Idaho. While negotiating, you may be tempted to withhold payment to save for the lumpsum amount. However, if the talks fall through, you will be a delinquent, which may negatively impact your credit score or result in lawsuits. Besides, the amount your creditor forgives is treated as an income for which you pay income tax.
Not every creditor will agree to a settlement. However, you may still be liable for their fees if you have used a settlement company.
Credit counselors equip you with information and skills to manage your financial life and debts, compose credit reports and offer debt management programs if it is the right option. They are primarily non-profit and will also help evaluate your indebtedness and offer legal advice and possible solutions.
Before the session, determine the credit counselor's qualifications, services offered, and whether there will be a written contract. Even when you do not pay for the service, expect to incur other costs related to managing your debt.
Bankruptcy discharges most of your debts with creditors and lets you start over afresh. To benefit from bankruptcy, you apply to a court to be declared bankrupt. Once declared bankrupt, your creditors are paid from whatever you own, and they fully discharge you from the debt. In Idaho, bankruptcy falls under federal law though state exemptions influence it.
You can file for bankruptcy under Chapter 7 or Chapter 13 in Idaho.
Filing under Chapter 7 is quicker and cheap, but you may lose all property the court deems not essential, including collectibles and property with too much equity.
Filing under Chapter 13 is more laborious and costly, but it lets you force your creditors to a payment system that will allow you to keep much of your property.
Remember, bankruptcy in Idaho cannot discharge domestic support arrears and tax debts.
Debt forgiveness is when a creditor relieves you of your debt obligation. The creditor may forgive your debt at their will or your request. While you cannot fully bank on it, especially with creditors in private business, there is never harm in asking.
The most common form of debt forgiveness in Idaho is the state's incentive to encourage medical workers to work in rural areas by forgiving their student loans. The federal government also occasionally forgives debt to incentivize particular behavior or to increase disposable income.
Debt and Financial Hardship Resources
Idaho offers residents various temporary debt and financial hardship resources to help them get out of debt.
These resources include the following:
Temporary Assistance Programs
Idaho's health and welfare department runs Temporary Assistance for Families in Idaho (TAFI). The program offers low-income, eligible state residents cash benefits to help them pay for essential needs.
Depending on their circumstances, a household may get up to $309 monthly payment deposited to their account or a card used at locations that accept EBT. The payments run for 24 months at a time.
Residents of Idaho may also be eligible for federal assistance programs like SNAP and unemployment benefits.
Idaho Health and Human Services
TAFI restricts itself to cash benefits only. However, the state government runs other health and welfare assistance programs through its various agencies. These programs include:
- Medical aid services
- Mental health services
- Maternal and reproductive health care services
- Food and nutrition services
- Home and utility services
- Aid to Aged, Blind, and Disabled Cash Services
Idaho Child Care Program (ICCP) helps you care for your child under 13 years or over 13 if they have a disability so you can work or study. The program works by paying part of the child's care into the program and tops it up based on several factors.
Parents then choose where they would like their child cared for when they can't be with them.
Shelters for the Homeless
There are homeless shelters in Idaho's various regions, some run by the state or county government and many more run by charitable organizations. You are welcome to stay at any of these without charge as long as you maintain simple etiquette.
Such shelters have served many while they reoriented themselves financially.
Free Transport Services
The city of Boise sometimes provides free transport to its seniors, veterans, and persons with disability. The University of Idaho also offers free transport services for its students. If you are a member of any of these groups, you can save substantially by taking advantage of them.
A critical part of seeking relief for your debt in Idaho is choosing a reputable debt relief company to help you with the process. Many companies may only seek to profit from you, leading you deeper into financial problems. So do due diligence when seeking a debt relief company to avoid scams.
TurboDebt offers Idaho debt relief to provide legitimate options for relief. Take advantage of our free consultation, and see if you’re eligible for enrollment today.