Turbo Takeaways

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, pushing Hoosiers to rely more on credit cards for monthly expenses. As a result, many are turning to Indiana debt relief programs for help.

Curious about how Indiana residents can get assistance? Keep reading to explore the various debt relief programs available to Indiana residents.

Your Options To Get Out of Debt in Indiana

Credit Counseling

One way to start tackling overwhelming debt is to talk with a certified credit counselor and learn more about your debt relief options.

How It Works in Indiana
Hoosiers connecting with a credit counselor can choose online sessions or in-person meetings to hear sound financial advice. You’ll also have the option to enroll in educational sessions to learn about key topics like budgeting and investing.
Pros
Learning from a professional can steer you on the best path for overcoming your debts and help you plan a stronger financial future.
Cons
Credit counselors provide advice, but they don’t pay off your debts. You’ll have to act on their guidance to actually relieve debt.
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 in Indiana
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
Debt management plans make you less likely to miss a payment or pay an account late.
Cons
Enrolling in a DMP typically requires you to close out most, if not all, credit card accounts.
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 in Indiana
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
Balance transfer cards eliminate interest for an introductory period, typically 12 to 18 months, allowing you to catch up on outstanding payments.
Once you use the new loan to pay off all other debts, you can focus on repaying one monthly balance. You could also lower your interest rate with a debt consolidation loan.
Cons
Since the zero-interest benefit only lasts for a limited time on this type of credit card, you could pay sky-high interest rates on any leftover balance.
Applying for a debt consolidation loan typically requires a strong credit score. If you carry a low credit rating, you could have a hard time qualifying for a loan or end up with a higher interest rate than you were paying on multiple debts.
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 in Indiana
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 an organization also allows you to leverage expert negotiators to settle with credit card companies.
Pros
Debt settlement organizations negotiate a lump-sum payment that could be up to half of what you owe.
Cons
Your credit score typically drops during the debt settlement process.
Cost
While you’ll pay no upfront fees, debt settlement companies charge administrative fees of up to 25% based on how much 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 in Indiana
Consumers typically file Chapter 7 or 13 bankruptcy to repay or absolve debts through the court system. In Chapter 7 bankruptcy, Hoosiers sell off assets to liquidate cash for debt payments. Chapter 13 involves following a court-ordered payment plan to pay creditors back over a period of up to five years.
Pros
Filing for bankruptcy can give you a reprieve from certain debts and a fresh financial start once you complete the proceedings.
Cons
Bankruptcy can impact your credit history for up to 10 years after you file, making it difficult 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 the State of 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 Contracts10 years
Promissory Notes (Mortgages)6 years
Open-Ended Accounts (Credit Cards, HELOCs)6 years
Oral Agreements6 years
Medical Debt10 years

Student Loan Forgiveness in Indiana

Indiana doesn’t offer any state-sponsored loan forgiveness for students, but consumers may qualify for several federal loan forgiveness programs, including:

  • Public Service Loan Forgiveness: Consumers working full-time for federal, local, or tribal governments, or certain non-profit organizations, may qualify for loan forgiveness.
  • 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 facilitates the federal TANF program, which offers cash assistance for 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 for Hoosiers in need.
  • Women, Infants, and Children: Pregnant women and mothers with young children can access this supplemental nutrition program, which includes resources to encourage healthy moms and kids.
  • Indiana Division of Aging: This agency supports disabled and elderly Hoosiers, providing connections to in-home care and other 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.

TurboDebt Debt Relief Program Statistics in Indiana

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!