Indiana Debt Relief
14 MIN READ
Published April 05, 2023 | Updated May 11, 2023
In a Nutshell
Anyone can pursue debt relief options when a debt amount becomes overwhelming. Indiana residents have various options when it comes to finding debt relief, including, debt settlement, debt consolidation loans, or a debt management plan with a credit counselor.
Debt relief companies like TurboDebt and nonprofit organizations are ready to help Hoosiers from South Bend to Indianapolis and Evansville to Fort Wayne make a fresh start with their finances.
This guide will explore Indiana debt relief options to help you manage your credit and start you on the path to living debt free.
How Does Debt Relief Work in The Hoosier State?
Whether your credit score is low, debt collectors keep calling, or late fees keep piling up, it’s likely time to seek debt relief.
During the debt relief process, you'll work with professionals to get more ideas about how to handle your finances and how to interpret your credit report. You'll also get help making a plan to pay off any outstanding medical bills, personal loans, and credit card debt. Together, you'll devise a debt management and payment plan that meets your needs.
Consider starting an initial consultation with TurboDebt to discover debt relief solutions for Indiana residents. You'll begin by answering a few questions about your financial situation, then come up with affordable monthly payments to erase your debt.
Indiana Debt and Finance Statistics
In the last calendar year, the Hoosier state’s unemployment rate continued to hover below the national average and currently sits at 3.1%.
While this figure is very encouraging, the effects of the COVID-19 pandemic and inflation are still leaving many Indiana residents with monthly payments on unsecured debt that they simply can't afford. Here's an overview of the debt statistics many Hoosiers face:
Average Consumer Debt
The average consumer debt for Indiana residents was $76,152 in 2022. Hoosiers, on average, are better off than many other Americans, as the national average debt was $101,915 in 2022. However, with a nearly 6% rise in debt from 2021 to 2022, this number is likely to increase, making it harder for residents to pay off outstanding balances.
Credit Card Debt
The average amount owed on credit cards in Indiana was $4,847 in 2022. This is below the rest of the country, which averages upwards of $5,589 in credit card debt.
Auto Loan Debt
Indiana residents love their cars, and drivers in the state carried an average of $19,769 in auto debt in 2021. This was a 6.5% increase from the previous year.
Currently, Indiana residents enjoy a healthy real estate market. They have one of the lowest mortgage debt averages in the country at $150,555, well under the current national average of $231,464.
Student Loan Debt
Indiana college grads, on average, owe $33,162 in federal student loans. This is slightly below other college grads nationwide who owe $35,287 on average.
Indiana sees fewer bankruptcies among its residents than even five years ago. Unfortunately, 13,076 Hoosier State residents still filed for bankruptcy in 2022.
Average Income and Employment
Hoosier median household income sits at $61,944, just under the average of $69,021 elsewhere in the country.
Hoosier credit scores are on an upward trajectory and averaged 712 in 2022. This figure sits right below the national average of 714.
The identities of Indiana residents are safer than residents in many other states. With 12,422 cases of identity theft reported in 2022, this puts Indiana 27th on the list in the U.S. for the number of cases recorded.
Banking and Tax Info
Indiana residents enjoy a relatively low state income tax rate of 3.23%. This is a flat rate, so all Hoosiers pay the same percentage rate on their income. Governor Holcomb recently proposed an even lower rate of 2.9%, making it almost the lowest in the United States due to Indiana’s current financial picture and surpluses.
Indiana’s sales tax rate has been set at 7% since 2008. But this doesn’t cover all items for purchase. For example, the gasoline tax rate sits at $.33 cents per gallon. Also, Hoosiers who like to light up pay a tobacco tax of $1.24 per pack of 25.
Indiana has a high number of residents who are considered unbanked, with at least 5.6% using alternative sources to control their funds.
TurboDebt Helps Indiana Residents Escape Their Debts
Indiana residents enrolled a total debt amount of $15,690,823 with us in 2022, with an average debt of $20,728 per client.
Does that amount of debt sound close to your own financial situation? At TurboDebt, we helped 2,248 Indiana residents with their debt, with over 700 enrolling in our debt relief program, saving almost 56% on their repayments before fees.
Top Types of Debt to Get Relief from in Indiana
Credit Card Debt
Credit Card Debt is one of the top types of debt that we see people struggle with, but we know that there are relief options, including our services at TurboDebt.
Some residents struggle with making on-time payments, getting into a cycle of late fees and high interest rates that add more to their payback amount each month. Even paying the minimum balance can drag you deeper into debt as you delay upfront costs by extending your payoff date.
At TurboDebt, we can negotiate with creditors to help alleviate as much as 50% of your total debt before fees.
On top of getting the right legal advice and dealing with the emotional trauma of a divorce, debts incurred during a divorce can quickly compound. In fact, the average Indiana resident spends about $9,000 for a divorce.
TurboDebt can help get you take control of your divorce debt through a relief program tailored to meet your financial needs after a split with your spouse.
It's estimated that only 30% of a business’s capital should be tied up in debt to avoid financial burdens as a company owner. Too much debt will lower your business’s credit score, making you a liability in the eyes of your lenders.
Debt relief programs like those offered by TurboDebt can help Indiana business owners eliminate their debt and focus on growing their capital.
Despite recent federal-level changes to how medical debt impacts credit ratings, it is still one of Americans' most financially crippling costs. The Consumer Federal Protection Bureau estimates that 20% of households across the U.S. carry medical debts totaling $88 billion.
Getting out of medical debt in Indiana may seem difficult, especially with ongoing expenses. But, TurboDebt provides options to manage your outstanding medical bills.
The American Dream of owning a home means that for many Americans, a mortgage is their most significant source of debt. The average mortgage debt for Hoosiers was $150,555 in 2022.
At TurboDebt, we connect Indiana residents with debt relief programs customized to fit their unique financial situation, including those impacted by mortgage debt.
Unfortunately for many Americans, unsecured debt is still an issue for their financial health, even in retirement. Some 30% of retired Americans said they have little to no retirement savings in their bank accounts.
Even on a fixed debt, retired Hoosiers have options. TurboDebt is here to help retirees get debt relief help so they can enjoy their post-job years.
Options for Debt Relief in Indiana
Debt Management Programs
Debt management programs provide Hoosiers with an effective debt relief option that rolls all their debts into one manageable monthly payment, typically at a much lower interest rate. When combined with a steady income, many Indiana residents clear their debt in under five years. This type of payment plan works within the constraints of your income and other financial obligations to help you manage your money better overall.
Debt Consolidation Loans
A single, low-interest debt consolidation loan with a financial institution or online lender may help you eliminate numerous high-interest credit card debts. To explore this option, you'll need a good credit score (typically upwards of 680) to qualify for loans at a lower interest rate.
With this option, you take out a loan to pay off your outstanding balances in a lump sum. After that, you're left making a single payment to the loan institution instead of paying off multiple accounts with varying interest rates.
It’s important to recognize that this type of loan will not wipe out the debt, as it only consolidates the loan into a single source. It's also important to note that if you don't have good credit, you could pay more in interest on a personal consolidation loan.
Indiana residents with debt issues can also pursue debt settlement. To start the process, seek help from a reputable debt settlement company that can help you make a plan to pay off your outstanding balances and negotiate with creditors to settle for less than your total debt amount.
In a program like this, the debtor agrees to pay their creditors a portion of what they owe instead of the whole amount. Once you enroll in a debt settlement program, you'll make monthly deposits to an account with the debt relief organization that submits your payments to the creditor.
One drawback to this option is that it can negatively impact a good credit score. Also, because the settlement takes time to negotiate, your payments may be considered late as you stop paying on an account until you reach a debt settlement.
However, despite these drawbacks, debt settlement programs can be a great option for Indiana residents experiencing the stress of overwhelming debt or collection agencies. It also offers an effective alternative to declaring Chapter 7 or 13 bankruptcy.
Credit counseling offers an advisory approach to fixing your financial situation. Throughout the process, you'll work with a counselor assigned by the credit counseling agency
These programs, offered through private organizations and nonprofit or government institutions, also give you insight into managing your money and avoiding future debt. They often help you create a debt management plan that you can use to approach creditors or other debt collectors. Enrolling in a credit counseling program doesn't involve paying your outstanding bills but gives you the tools to do so.
While declaring bankruptcy is often referred to as a clean financial slate, the reality is much starker than that. Filing for Chapter 13 or Chapter 7 bankruptcy may allow Indiana residents to eliminate their debts, it's typically viewed as a final option if you have no other foreseeable way to pay back what you owe.
Bankruptcy involves using legal professionals to determine how much you can afford to pay back to creditors based on your debt-to-income ratio. Some of your assets may get sold off to cover your debts, or a judge may order you to pay back a specific amount each month. In some cases, your debts may be waived if the court decides you have no realistic way of paying them off.
Declaring bankruptcy causes long-term damage to your credit. While you’ll dodge debt collectors and other lenders, it can take years to qualify for a loan again if you want to purchase a car or a home.
Debt forgiveness may occur when a lender ‘forgives’ or cancels out all or a portion of a borrower’s balance. A borrower typically must meet certain strict requirements for a lender to erase a debt or a portion of it. It should not be seen as a ‘Get out of Debt Jail Free’ card, though!
Government agencies typically offer debt forgiveness, as private organizations rarely provide this option. Requirements are often based on your income or profession. For example, teachers may qualify for student loan forgiveness based on the number of years spent teaching and the type of educational institution.
Debt and Financial Hardship Resources
Temporary Assistance Programs
Family and Social Services Administration: This service helps Indiana Residents who are elderly or in low-income situations with families and individuals with food insecurity, childcare needs, and looking for employment assistance.
State Health and Human Services
Hoosier Rx: This program offers financial assistance to senior residents struggling to pay for prescription medications as part of their Medicare Part D premium. It also helps people on the Medicare Advantage plan cover the costs of their prescription drug portion.
Temporary Assistance for Needy Families: The Temporary Assistance for Needy Families program (TANF) provides grant money to Hoosier families needing temporary financial assistance and other support services, including child care.
Shelters for the Homeless
Housing, Eviction, and Homeless Prevention: The Indiana Housing and Community Development Agency helps low to moderate-income families find sustainable housing options, so they won’t be without a place to stay or live.
Free Transportation Services
CIRTA: The Central Indiana Regional Transportation Authority (CIRTA) is a regional government organization that helps improve transportation options for Central Indiana residents, often with free options.
Finding Debt Relief in Indiana
You have lots of options to choose from when it comes to pursuing debt relief in Indiana.
And while there are plenty of options aimed at helping people break the shackles of debt and bankruptcy filings, it’s important to do your due diligence and find an accredited debt relief company with transparent reviews from actual clients.
Get reliable and tested help from teams like the professionals at TurboDebt. We’re here to help you find the right debt solution for your unique situation and get you back on the path to building wealth and living debt free.