Turbo Takeaways
- Indiana’s steady job market hasn’t shielded residents from inflation, rising housing costs, and mounting credit debt.
- More Hoosiers are turning to debt relief programs to protect their income and gain financial breathing room.
- With the right plan, debt relief can turn financial pressure into progress—helping Indiana families recover faster than interest can pile up.
Your Options To Get Out of Debt in Indiana
As household debt speeds up like an Indy 500 racer, many Indiana residents are struggling with unpaid debts and finding it hard to achieve financial stability.
Rising costs for necessities and essential services make saving difficult, prompting Hoosiers to rely more heavily on credit cards for their monthly expenses. As a result, many are turning to debt relief for help.
Curious about how Indiana residents can get assistance? Keep reading to explore the various debt relief programs available to Indiana residents.
Credit Counseling
One way to start tackling overwhelming debt is to speak with a certified credit counselor and learn more about your debt relief options.
How It Works
Hoosiers connecting with a credit counselor can choose between online sessions and in-person meetings to receive sound financial advice. You’ll also have the option to enroll in educational sessions to learn about key topics like budgeting and investing.
Pros
- Affordable access to certified professionals
- Personalized budgeting and repayment advice
- Education programs that strengthen long-term money skills
Cons
- Requires motivation to follow counselor's recommendations
- Doesn’t reduce existing balances directly
- Modest fees may apply after the first free session
Cost
Most credit counseling programs are affordable, and many offer help for those struggling with financial hardships, such as discounted or waived program fees (if you qualify).
Stats
- Over 31,000 credit counselors offer services across the United States.
Resources
Learn more about credit counseling from TurboDebt’s® resource library.
Debt Management
Debt Management Plans (DMPs) streamline the repayment process for Indiana residents struggling to keep up with multiple debts.
How It Works
Hoosiers can enroll in a debt management plan with a credit counseling organization or through a private company. Once you enroll in a DMP, the organization collects funds from you to directly pay creditors every month.
Pros
- Combines multiple debts into one predictable payment
- Creditors may lower interest or waive late fees
- Reduces the chance of missed or late payments
Cons
- Credit cards typically must be closed
- Missed payments can cancel negotiated benefits
- Setup and monthly agency fees per account
Cost
Fees vary depending on the organization. However, you could pay an initial fee to get started, plus $20-$40 per month for each account enrolled in your plan.
Stats
- Indiana’s debt-to-income ratio is 1.24, indicating that for every dollar earned, Hoosiers owe more.
Resources
Take an in-depth look at the pros and cons of debt management.
Debt Consolidation
Consolidation is another way for Hoosiers to simplify the repayment process for small to moderate debts.
How It Works
Hoosier State residents have two main options for consolidating debt. The first is to open a new zero-interest balance transfer credit card and move debts from other accounts, paying off outstanding balances without added interest.
Another way for Hoosiers to consolidate debt is to take out a debt consolidation loan from a major lender. Taking out a loan big enough to cover all your debt at a lower interest rate could help you pay off balances from student or personal loans and even credit cards.
Pros
- Combines several debts into a single monthly payment for easier tracking
- Consolidation loans can lower interest rates and simplify repayment through one fixed balance
- Balance transfer cards offer 0% introductory periods that help pay down debt without accumulating interest
Cons
- Requires good credit to qualify for low-rate consolidation options
- Long loan terms can lead to paying more interest overall
- Balance transfer cards may charge high rates if any balance remains after the promotional period
Cost
The cost of consolidation options depends on the amount of debt you carry. You may also pay a small fee to open a balance transfer card or an origination fee for a consolidation loan.
Stats
- Indiana’s average credit score sits at 712, showing that many Hoosiers carry above-average credit that could help them secure loans with better interest rates.
Resources
Find out how debt consolidation programs work to see if this solution is right for you.
Debt Settlement
Hoosiers with over $10,000 in credit card debt often benefit from debt settlement. You could save time and money working with a certified debt settlement organization.
How It Works
Indiana consumers can negotiate with creditors independently or through a professional program. Choosing a debt settlement program keeps you accountable as you follow a specific payment plan.
Working with a debt settlement organization also allows you to leverage expert negotiators to settle with credit card companies.
Pros
- Reduces total unsecured debt through negotiated settlements
- Professional help speeds up repayment and lowers stress
- Can provide faster relief than long repayment plans
Cons
- Credit score drops during the process
- Creditors may refuse to settle or continue collection
Cost
While you’ll pay no upfront fees, debt settlement companies charge administrative fees of up to 25% based on the amount of debt you enroll.
Stats
- Indiana residents carry an average credit card debt of $5,621, with some Hoosiers struggling to pay off much more.
Resources
Explore your options for debt settlement to decide if it’s the best solution for your financial goals.
Bankruptcy
After exhausting all other options for debt relief, Hoosiers may consider bankruptcy to pay off debts. Experts recommend consulting with a bankruptcy attorney before pursuing this method.
How It Works
Consumers typically file for Chapter 7 or Chapter 13 bankruptcy to repay or discharge debts through the court system. In Chapter 7 bankruptcy, Hoosiers sell off assets to liquidate cash for debt payments.
On the other hand, Chapter 13 involves following a court-ordered payment plan to pay creditors back over a period of up to five years.
Pros
- Provides legal relief from overwhelming debt
- Stops creditor calls and wage garnishments
- Offers a fresh financial start once you complete the proceedings
Cons
- Remains on credit reports for up to 10 years
- Filing and legal costs can be high
- Difficulty to apply for new loans or lines of credit
Cost
After paying court fees and hiring a bankruptcy attorney, you could pay up to $10,000.
Stats
- Over 17,000 Indiana residents filed for bankruptcy (PDF) 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 Indiana
Statute of Limitations on Debt Collections in Indiana
Indiana laws guide how creditors can pursue consumers to collect debts. While debts don’t disappear if they aren’t paid, Indiana’s statute of limitations governs how long creditors can pursue legal action for debt repayment.
Here are the statutes of limitation for each type of debt in Indiana:
| Type of Debt Agreement | Length of Time Collectible |
|---|---|
| Written Contracts | 10 years |
| Promissory Notes (Mortgages) | 6 years |
| Open-Ended Accounts (Credit Cards, HELOCs) | 6 years |
| Oral Agreements | 6 years |
| Medical Debt | 10 years |
Student Loan Forgiveness in Indiana
Indiana doesn’t offer state-sponsored loan forgiveness for students; however, consumers may qualify for several federal loan forgiveness programs. For example, the Public Service Loan Forgiveness program allows consumers working full-time for federal, local, or tribal governments, or certain nonprofit organizations, to qualify for loan forgiveness.
With the Teacher Loan Forgiveness, educators who teach for five consecutive years in a low-income school district or educational office may qualify for up to $17,500 in loan forgiveness.
Resources for Financial Assistance in Indiana
The Hoosier State offers multiple programs to aid residents struggling to pay for medical care, food, and other essential needs. Here are some of the top financial assistance programs offered by the state or in partnership with the federal government.
- Temporary Assistance for Needy Families (TANF): Indiana administers the federal TANF program, which provides cash assistance to low-income families with children. To apply for TANF, applicants must also enroll in Indiana’s IMPACT employment program to complete certain job search activities.
- Supplemental Nutrition Assistance Program: Formerly known as “Food Stamps,” Indiana’s SNAP program offers financial assistance for low-income families to purchase nutritious groceries.
- Indiana Medicaid: Low-income individuals, including seniors and children, can access medical health plans tailored to meet the needs of Hoosiers.
- Women, Infants, and Children: Pregnant women and mothers with young children can access this supplemental nutrition program, which includes resources to promote healthy lifestyles for mothers and children.
- Indiana Division of Aging: This agency supports Hoosiers with disabilities and the elderly, providing connections to in-home care and other essential services.
Indiana stimulus checks also helped residents struggling during and after the pandemic. However, there are currently no new stimulus checks slated for Indiana residents.
Get Professional Help Paying Off Your Debt
Finding the right debt relief partner is essential when you’re overwhelmed with financial burdens. At TurboDebt®, we help you find the right solution with customized debt relief plans that fit your lifestyle and income.
Here are more benefits you experience after enrolling your debt with us:
- No upfront or late fees
- Faster debt repayment
- Savings on your total debt balance (up to 50%)
- Expert help negotiating with creditors
When you enroll with us, you’ll also experience TurboDebt’s trusted service. With over 20,000 positive reviews on Trustpilot and Google, we’re a proven leader in debt relief.
Contact us today to find out if you qualify for our top-rated debt relief plans and start on the path toward a debt-free life!