Idaho Debt Relief

In a Nutshell

Idaho's average household debt-to-income ratio stood at 2.073 in 2022. With two dollars owed for every dollar earned, this ratio places Idaho among the states with the highest debt burdens in the nation. A debt ratio like this limits your consumption and spending options, negatively affects your credit score long-term, and can quickly result in your debt spiraling 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.

If you’re struggling with debt in Idaho, know that you're not alone. At TurboDebt, we find many residents who need relief from medical bills, credit cards, and personal loans, and that’s why we’re here to help. Our free consultation will help examine your financial situation so that we can recommend the best solution.

How Does Debt Relief Work in Idaho?

Debt relief helps you regain control of your finances and avoid experiencing debt collectors’ calls and letters. When you enroll in a program, a debt relief company analyzes your indebtedness and recommends a debt relief program. This may include renegotiating to reduce your balances owed or consolidating your debts at a lower interest rate so that you can pay them off more easily or faster. 

You can use debt relief services for both secured and unsecured debts. Options like credit counseling can also help you break the cycle of payday loans.

Idaho Debt and Finance Statistics

Here are some of the top debt and finance statistics related to average consumer debt in the state of Idaho:

Credit Card Debt

Idaho's average credit card debt was $5,213 in 2022, significantly below the national average of $6,194.

Auto Loan Debt

Idaho averaged an outstanding auto loan balance of $22,353 in 2021, among the highest gains in the nation.

Mortgage Debt

In 2022, the average mortgage for Gem State residents was $226,049, the 18th highest in the nation.

As of May 2023, the average home value in Idaho dropped 7.6% from the year before to $448,056. Although prices did decline, this high number makes it hard for first-time buyers to find housing at a reasonable value. Home values in Idaho Falls sit at an average price of $367,295, while properties in Pocatello, home to Idaho State University, are now averaging right around $316,671.

Student Debt

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.

Bankruptcies

In 2022, 1,521 Idahoans filed for bankruptcy. Most individuals file for either Chapter 7 or Chapter 13 bankruptcy, which either liquidates assets or reorganizes debts, respectively. Of these bankruptcy filings, 1,326 were for Chapter 7, and 179 petitions were filed for Chapter 13.

Credit Score

Idaho residents' average credit score increased by two points from 2021 to 2022 and ranks as one of the higher scores in the U.S.

In 2022, Idaho's average credit score was 727, a “good” credit score according to the commonly used FICO credit scoring system. With a good credit score, you may qualify for more credit and better interest rates than if your credit score is within the “fair” or “poor” range.

Identity Theft

Idaho ranks 37th nationally in identity theft reports, with over 1,400 cases yearly accounting for 13% of all fraud-related incidents.

Identity thieves commit credit card fraud, bank fraud, phone or utility fraud, auto loan or lease fraud, or even tax fraud. Be vigilant against identity theft since it can cause devastating financial loss and even compromise you legally.

Average Income and Employment

With a population of 1.9 million, Idaho had a per capita income of $31,509 in 2021. During the same period, the median household income stood at $63,377.

Idaho has enjoyed a downward trend in unemployment since September of 2022. However, 11% of its citizens still live in poverty.

Banking and Tax Information

Idaho is served by 11 major banks, with total assets of over 10 billion as of 2022.

Income tax is levied on all state residents subject to paying federal income taxes. Non-residents and partial-year residents are liable to pay Idaho state income tax if they made any part of their annual employment or self-employed/business income in Idaho. Idaho charges a state sales tax of 6%.

TurboDebt Helps Idaho Residents Get Out of Debt

During 2023, TurboDebt helped a total of 1,307 Gem State residents. Our debt relief company enrolled 475 of those clients into an Idaho debt relief program, with a total enrolled debt of $10,190,408. Each client had an average enrolled debt of $21,453 and saved about 54.88% of their total outstanding debt, on average, before fees. Contact us to learn more about how you can reduce your debt and start building wealth again.

Top Types of Debt To Get Relief From in Idaho

Here are the types of debt to get relief from in Idaho:

Credit Card Debt

Credit cards help you cover essential expenses, but this kind of debt can easily get out of control. Credit cards carry elevated interest rates and high fees for late payments.

The best way to manage credit balances is to pay off the entire statement in full every month. However, with average credit card debts in Idaho at $4,821, it’s likely some Gem State residents fall behind on payments and need help.

At TurboDebt, we offer customized debt relief services to help Idaho borrowers clear their credit card debt and work towards living debt-free.

Divorce Debt

Divorce often has a destabilizing effect on finances, sometimes long-term. It’s important to note that Idaho is a community property state, which means you and your spouse are jointly liable for debts acquired during your marriage.

Divorce debt usually includes credit card debt, mortgage and HELOC debt, medical bills, tax liabilities, and auto loan debts. Coupled with a divorce settlement and legal fees, you can quickly become overwhelmed unless you take action.

TurboDebt’s relief programs can help you reduce a divorce's potentially negative impact on your financial situation.

Business Debt

Ideally, a business should make you enough money to eventually pay off startup debts and generate a profit. However, this is not always the case for thousands of small businesses and start-ups that open each year in the U.S. Within a short period of time, it often becomes necessary to stave off this initial debt before it makes your business unprofitable in the long term.

TurboDebt helps you negotiate debt with your creditors, securing favorable terms that may assist in keeping your business afloat until it can achieve the growth it needs to become and remain profitable for years to come.

Medical Debt

According to the Consumer Financial Protection Bureau, medical debt affects 20% of Americans. Even if you carry insurance, healthcare costs can quickly add up, with bills for planned treatments, or, as is more often the case, unexpected out-of-network medical services. Idaho residents carry an average of $2,832 in outstanding medical bills.

Settling medical debt through a service like TurboDebt is a way to escape the overwhelming burden of medical bills.

Homeowner Debt

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 even further. In an uncertain financial situation, a homeowner’s mortgage and the debt incurred for maintenance and upgrades to the property may get out of control and threaten a borrower’s ability to retain ownership of their home.

TurboDebt provides debt relief in Idaho and can help negotiate with creditors to get you out of mortgage debt.

Retirement Debt

With an average annual cost of living of $48,578, Idaho retirees are estimated to require over $700,000 in retirement savings, in addition to Social Security retirement benefits, to live comfortably over the course of their retirement. Saving that much can challenge residents already living in debt. Unexpected circumstances like high medical bills from a long-term injury or illness can also lead retirees into debt.

TurboDebt offers solutions to aid retirees in managing outstanding balances, regaining their lifestyle, and saving toward retirement 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. It’s also important to understand your total debt before pursuing any options.

Brad Reichert, founder and managing director of Reichert Asset Management, offers some suggestions for consumers. “When talking with a debt collector, be careful about sharing your personal or financial information, especially if you’re not already familiar with the collector,” shares Reichert. 

“Not everyone who calls saying that you owe a debt is a real debt collector.  A collector has to give you ‘validation information’ about the debt,” Reichert explains. “Once you establish this debt is indeed yours, you can decide on the best course of action when it comes to your debt relief needs,” Reichert adds. 

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 and help you consolidate your outstanding balances into manageable amounts and lower interest rates.

When you opt into a program, the agency analyzes your debt situation, finds out what you can pay, and arranges lower interest rates and manageable repayment schedules. You then make a single payment to the debt management agency, which distributes payments to your creditors on your behalf.

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 cards. Also, you must commit to closing your current credit cards and lines of credit until you get out of debt.

Debt Consolidation Loans

A debt consolidation loan lets you consolidate all your debts into one, with the potential for a lower interest rate and a single monthly payment. Rather than pay off several smaller loans and variable-rate credit cards, you only need to keep up with one fixed-rate payment, simplifying your financial life.

Most often, when using this method, you can consolidate your debts using a secured loan like a home equity loan or an unsecured loan like a balance–transfer credit card with a promotional rate at or close to 0%. It's important to secure a consolidation loan with a favorable interest rate to avoid paying more for your debts overall. A good credit score (typically a FICO score of 700 or above) can help you accomplish this.

Debt Settlement

Debt settlement is an agreement with your creditors to let you pay less than what you currently owe. For example, you may negotiate to settle a $15,000 bill for $10,000. You can negotiate on your own or have a debt relief company negotiate on your behalf for a fee. Some agencies can even help you settle for up to half of your current total.

During the debt negotiation process, you may need to stop paying on an account to collect enough money for a lump sum payment that you will make to your creditor as part of the deal you work out with them. Working with a reputable debt settlement company can ensure you get the payment plan you want and avoid creditors refusing your settlement amount, which can result in late repayment fees.

Credit Counseling

Credit counselors equip you with information, education, and skills to handle your debts, understand credit reports, and manage your ongoing household budget. Credit counseling is primarily offered through nonprofit organizations and will also help evaluate your indebtedness to provide effective solutions.

Before signing up for credit counseling sessions with a particular firm, determine the credit counselor's qualifications, services offered, and whether or not you're required to complete courses on financial topics as part of the curriculum.

Bankruptcy

Bankruptcy discharges most of your debts with creditors and lets you start afresh. To begin the process of bankruptcy, you apply to a court to be declared bankrupt. In Idaho, bankruptcy falls under federal law, though state exemptions may also influence court rulings.

You can file for personal bankruptcy under Chapter 7 or Chapter 13 in Idaho. Filing under Chapter 7 can be faster and cost less, but you may lose personal items the court deems non-essential, including collectibles and certain real estate properties with too much equity.

Filing under Chapter 13 is more laborious and costly, but it lets you negotiate with your creditors to get them to agree to a payment system that will allow you to keep much of your property while restructuring your debts.  This is typically available to bankruptcy petitioners who have sufficient income to support their revised debt repayment plan.

Remember, filing for bankruptcy in Idaho doesn't discharge child support in arrears and tax debts due to the IRS or state income tax authorities. It can also negatively impact your credit reports and scores for up to 10 years. If you're considering this option, it’s best to contact a law firm for legal advice on whether bankruptcy is the best option for your personal financial situation.

Debt Forgiveness

Debt forgiveness occurs when a creditor relieves you of all or a portion of your debt obligation. The creditor may forgive your debt when you complete a specific debt forgiveness program or when you make a special request to have your debt forgiven. This form of debt relief is uncommon, but some federal agencies and private entities offer debt forgiveness programs to employees in certain public service positions.

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.

Debt and Financial Hardship Resources

Idaho offers residents resources for times of financial hardship, including 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 pay for essential needs.

Depending on their circumstances, a household may get up to $309 monthly payments 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 the aged, blind, and disabled cash services

Child Care

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 cost of a child care program. Parents can also choose the provider's location.

Shelters for the Homeless

You can find homeless shelters throughout Idaho's various regions, some run by the state or county government and many more run by charitable organizations. Some facilities allow you to stay for multiple nights, while others require a daily check-in. Others provide services like job and housing placement and employment skill training. 

Free Transport Services

The city of Boise provides some free transport services to seniors, veterans, and people with a 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 these services.

Find Relief with TurboDebt

TurboDebt is ready to help Idaho residents overcome their debt burdens with our personalized plans and top-rated service. Check out thousands of positive TurboDebt reviews from trusted sites. 

It only takes a few minutes to get started with a free consultation. Our personalized plans help you become debt-free faster and can potentially save you up to 50% of your total debt before fees! Contact us today to start your journey toward financial freedom.