Idaho Debt Relief
14 MIN READ
Published April 07, 2023 | Updated September 22, 2023
In a Nutshell
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.
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 debt collectors. 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 interest rates or consolidating your debts. 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.
Debt and Finance Statistics Specific to Idaho
Here are some of the top debt and finance statistics specific to the state of Idaho:
Average Consumer Debt
In 2022, Idaho's average consumer debt was $114,695, an increase from $104,944 in 2021. This includes debt from credit cards, student and auto loans, and mortgages.
Credit Card Debt
Idaho's average credit card debt was $5,213 in 2022, below the national average of $6,194.
Idaho averaged an outstanding auto loan balance of $22,353 in 2021, among the highest gains in the nation.
In 2022, the average mortgage for Gem State residents was $226,049, 18th in the nation.
As of May 2023, the average home value dropped 7.6% to $448,056, still a high number, making it hard for first-time buyers to find housing at a reasonable value. Home values in Idaho Falls sit at $367,295, while properties in Pocatello, home to Idaho State University, are $316,671.
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 bankruptcy, which liquidate and reorganize assets. Of these filings, 1,326 were for Chapter 7, and 179 were filed for Chapter 13.
Idaho's 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 score according to FICO. With a "good" credit score, you may qualify for more credit and better interest rates if your credit score is within the good range or better.
Idaho ranks 37th nationally in identity theft reports, with over 1,400 reports yearly accounting for 13% of all fraud-related cases.
Identity thieves 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 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 live in poverty.
Banking and Tax Information
Idaho is served by 11 banks, with total assets of over $10 billion as of 2022.
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. Idaho charges a sales tax of 6%.
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 enrolled debt of $22,606 and saved about 46% 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 often has a destabilizing effect on finances, sometimes long-term. Idaho 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 a divorce settlement and legal fees, you may be overwhelmed unless you take quick action.
TurboDebt relief can help you reduce divorce debt's negative impact on your financial situation.
Ideally, a business should make you enough money to eventually pay off startup debts with a profit. However, this is not always the case, and it becomes necessary to stave off the debt before it makes your business unprofitable.
TurboDebt helps you negotiate debt with your creditors, helping you secure favorable terms that may help keep your business afloat.
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 planned or unexpected services. Idaho residents carry $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.
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.
TurboDebt provides debt relief in Idaho and can help negotiate with creditors to get you out of mortgage 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 and help you consolidate your outstanding balances into manageable amounts.
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.
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 line 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 lower interest and a single monthly repayment. 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 home equity or an unsecured loan like a balance–transfer credit card. 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 can help you accomplish this.
Debt settlement is an agreement with your creditors to let you pay less than what you 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 half of your total.
During the debt negotiation process, you may need to stop paying on an account to collect money for a lump sum payment. Working with a reputable debt settlement company can ensure you get the payment plan you want and avoid creditors refusing your settlement, which can result in late repayment fees.
Credit counselors equip you with information and skills to manage your debts, understand credit reports, and complete financial education courses. Credit counseling is primarily offered through nonprofit organizations and will also help evaluate your indebtedness to provide effective solutions.
Before a credit counseling session, determine the credit counselor's qualifications, services offered, and whether or not you're required to complete courses on financial topics.
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 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 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, filing for bankruptcy in Idaho doesn't discharge domestic support arrears and tax debts. It can also negatively impact your credit for up to 10 years. If you're considering this option, contact a law firm for legal advice.
Debt forgiveness occurs when a creditor relieves you of your debt obligation. The creditor may forgive your debt at their will or your request. This form of debt relief is uncommon, but some federal agencies and private entities offer debt forgiveness programs.
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 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 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
A critical part of seeking relief for your debt in Idaho is choosing a reputable debt relief company to help you with the process. Some 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. Check out reviews from trusted sources and look for an organization's accreditation through the Better Business Bureau.
TurboDebt offers Idaho debt relief programs to provide legitimate solutions to help you pay off outstanding balances and start building wealth. Take advantage of our free consultation, and see if you’re eligible for enrollment today.