Louisiana Debt Relief
17 MIN READ
Published April 04, 2023 | Updated May 18, 2023
In a Nutshell
Finding debt relief in Louisiana can often feel like an impossible task. While the home of Creole, Cajun cooking, and Mardi Gras may not be the highest on the list compared to average credit card debt or even household debt among the states in America, it is number four when it comes to the number of credit card delinquencies, and also lands as the 4th lowest median income in the country at $50,935.
In this article, we’ll discuss issues of income and economy in the state, plus debt and financial statistics related to Louisiana debt relief. We’ll also help you find answers to your questions about debt relief in Louisiana, to help determine the solution that's right for you.
Louisiana: The Big Economic Picture
Rich in history and culture, Louisiana is also one of the most diverse states in the entire country. Originally a territory belonging to the French, the Spanish, and the English, the Pelican State was an early home to indigenous cultures along with enslaved and free Africans. For all its fascinating history, the state heavily relied on agriculture for its economy, thanks to rich soil and a temperate climate.
Transportation has also always been a major part of the Louisiana economy, as it sits at the junction of the Mississippi River and the Atlantic Ocean. New Orleans and Baton Rouge have long been major ports where people from across the globe have done business and traded.
Today, Louisiana is a state that relies heavily on its natural resources of oil as well as on real estate and healthcare for its economic input. However, Louisiana currently stands as the 48th lowest economy in the country.
All of this means that while the people of Louisiana may not carry a lot of debt, they do have dramatically low incomes, which keep them locked out of “good debt” like mortgages and tied to “bad debt” like unsecured credit cards and personal loans, making Louisiana debt relief is critical to many.
Debt Relief in Louisiana
Debt in Louisiana typically includes factors like credit cards, and other unsecured debts like personal loans, car loans, and medical bills. What begins as a monthly payment on a credit card bill that seems easy to make can quickly escalate to a financial situation that feels insurmountable.
If you live in Louisiana, it's important to understand your options regarding debt relief and how to choose a debt management program to end the negative impact indebtedness has on your life.
Debt and Finance Statistics in Louisiana
First, let’s take a look at the raw data for debt in Louisiana.
Average Consumer Debt
Average consumer debt in Louisiana has risen by 3.2% from 2021 to 2022. The current average, $77,770, is still low compared to the national total. Consumer debt includes a range of debts like mortgages, credit cards, car loans, and unsecured personal or medical loans.
Credit Card Debt
The average credit card debt for Louisiana residents was $5,340 in 2022. This is a good amount higher than the national average of $3,060 per household. At TurboDebt, credit card debt is often the number one culprit for financial difficulties, so if you find yourself struggling, know you're not alone.
Auto Loan Debt
In 2021, auto loan debt crossed above $20,000 for the first time in history with prices for both new and used cars skyrocketing. The same year, Louisiana had one of the highest average auto debts in the U.S. at $24,826.
As interest rates and car loans pricces rise, auto debt is a common problem for Louisiana residents. If you have a car payment that you can’t make, be sure to get in touch to see what relief options you can take advantage of.
Louisianans have an average mortgage debt of $169,479. The state's below-average mortgage debt can also be attributed in part to the state's relatively low home values.
In Louisiana, the average home value is low compared to the rest of the country, sitting at $185,041. This figure also highlights residents' low equity in their homes. Add to that the below-average income levels in the state, and what seems low, is actually high for many individuals when it comes to housing costs.
And while low home values also mean that residents can pay off mortgages faster, we still see a lot of people in the state struggling to make monthly payments on their homes.
Student Loan Debt
Student loan payments are one of the most common types of debt borne by young people as they seek employment after college or vocational training. Louisiana comes close to the national federal student loan debt level with an average of $34,705.
Bankruptcy rates in the United States have decreased significantly in the past decade. However, as of March 2022, Louisiana had 7,321 bankruptcy filings, a relatively high number per population among the U.S. national average. Bankruptcy can function as a tool to alleviate debt, however, it’s important to speak with a legal expert to determine if this is the right course of action based on your personal financial situation, as it can negatively impact your credit for a long time.
Average Income and Employment
According to the U.S. Census Bureau, the average income of an individual in Louisiana was $30,340 in 2021. Annual household income was $53,571.
The state's unemployment rate sat at 3.6% as of March 2023, the same as the national average.
The average credit score in Louisiana was 689 as of 2022, significantly lower than the national average of 714. Credit scores are a key indicator of financial security and a score of 689 means it's likely many state residents struggle to pay down their debts, make on-time payments, and manage their credit.
Identity theft is on the rise in the U.S. Louisiana is no exception, with 34,043 cases reported in 2021 for a total loss of $30 million. When someone who steals your information tries to open credit accounts or even receive medical services in your name, it can harm your credit and cost you money, potentially pulling you further into debt.
Banking and Tax Info
Louisiana imposes a state sales tax of 4.45% and a max local sales tax of 7%.
Individual income tax rates range from 1.85% to 4.25%, depending on income, and corporate income tax rates range from 3.5% to 7.5%.
The Federal Deposit Insurance Corporation’s survey of banked and underbanked households showed that Louisiana is one of the least banked states in the nation, with at least 5.6% of households using sources other than banks for financial transactions.
Internal Debt Statistics from 2022
TurboDebt is proud to say we've helped a large number of Louisianans find debt relief. In 2022, we consulted with a total of 1,863 clients, enrolling over 500 of those individuals into our program, leading to a total of $11,967,089 of debt enrolled. Our average client from Louisiana had $21,798 in enrolled debt, and we were able to save them 57.78% on average before fees.
Top Types of Debt in Louisiana
Credit Card Debt
Credit card debt is the most common type of debt across the country, so if you find yourself battling with this type of debt, know that you are not alone. The total credit card debt in the U.S. is currently $986 billion, with this number expected to rise as interest rate hikes continue.
TurboDebt has enrolled thousands of clients with seemingly impossible amounts of credit card debt. One of the top ways we help Louisiana customers with credit card debt is through debt negotiation. Through this credit card debt relief process, we can work with credit card companies to potentially reduce the total debt you owe.
Finances are often one of the main reasons for a divorce, and proceedings make debt that much harder to manage on your own. The median cost of divorce is $7,000 in the U.S., and that can only add to any existing financial struggles.
Louisiana divorce debt relief is critical, and we’re here to help. If you are dealing with a divorce and are hurt financially, TurboDebt can get you enrolled in a customized program to help you manage your financial life.
For small business owners struggling with outstanding loans or trying to maintain profits, debt relief can be essential to business success. While the average business owner has roughly $195,000 in debt, there are ways to lower your fees and costs through the right debt relief program with TurboDebt.
Medical bills can pile up, usually as a result of an accident or some other unforeseen circumstance outside of your budget. As many as 20% of adults in the U.S. carry medical debt.
In Louisiana, around 21% of residents have medical debt target="_blank" rel="nofollow"), with an average balance of $824. If you've had bills sent to collections, it can seem impossible to overcome outstanding medical balances. Fortunately, TurboDebt can connect you to Louisiana medical debt relief to help you start eliminating those overwhelming medical bills.
Mortgage rates continue to climb alongside housing prices, and Louisiana residents struggle in a state with a high percentage of mortgage defaults. In the Pelican State, 1 in 1,107 houses is in foreclosure. If you're facing foreclosure, TurboDebt can help. Contact us for a free initial consultation to discuss ways you can mitigate your homeowner debt.
Many retirees have no savings and live off of monthly income from pensions or social security, making it hard to plan for paying off big purchases or expenses. Living on a fixed income can make it hard for Louisiana retirees to manage unexpected costs, sending some deep into debt.
TurboDebt can help you find Louisiana retirement debt relief so you can live debt-free after retiring.
Louisiana Debt Relief Programs
You might not realize just how many debt relief programs exist to help Americans get out of debt. Debt relief options range from debt management programs that help you lower interest rates and make reasonable payments, to consolidation loans that allow you to lump your debts together into a single payment. Some are eligible for debt settlement, which can help reduce your debt amount by up to 50%. Others may benefit from using credit counseling to develop a solid debt management plan and make wiser financial choices.
Read on to learn more about each type of debt relief solution.
Debt Management Programs
A debt management program is one you will set up with a debt relief organization like TurboDebt to make a single monthly payment to the company. The debt relief organization then works with your debtors to accept lower monthly payments and reduce interest rates, remove late fees, and even lower balances.
For example, if you owe $20,000 in credit card balances at 21.89% interest, the average national credit card interest rate, you would be paying $2,016 a month!
With a debt management program, you could get that balance reduced or your interest rate negotiated down. Now, you might be looking at only $15,000 at 8% paid out over 60 months. On a plan like this, you're paying $260 a month, and your debt would be completely paid off in a year.
Debt Consolidation Loans
In contrast, you could work with a debt relief company to get a debt consolidation loan, which is a single loan you take out to pay off all of your debts in a single payment. Then, you will only owe the company a monthly payment for all your previous debts, avoiding debt collection in the process.
Just be sure that you understand all the terms of the debt consolidation company, and you don’t get sucked in by a low “teaser rate” that jumps up to a higher rate after a few months.
Debt settlement is a form of debt management where a professional negotiates with your creditors for a reduced payoff amount. These professionals settle on your behalf, typically convincing the bill collector to drop your balance down to a certain amount and accept a lump-sum payment to eliminate the remainder of your debt.
Once you agree to a solution, the debt settlement company will administer your payments to the creditor. You'll pay into this account every month, with the settlement organization charging a fee ranging from 15-25% of the amount you pay.
Debt settlement can help you pay off large sums in as little as 24 months through an affordable monthly payment structure you work out during an initial consultation. After learning more about your finances, the organization creates a payment plan based on your debt-to-income ratio.
A credit counseling agency is a nonprofit organization providing financial education tailored to your needs. Once you enroll in a program, a trained and certified credit counselor will discuss your financial situation, look at your credit report, and help you come up with a budget and a debt management plan, typically at no cost to you. However, these agencies only offer advice, not payment plans to creditors.
Sometimes filing for bankruptcy is the only option for debt relief. You can file to have your outstanding debts resolved through Chapter 7 bankruptcy or create a mandated repayment plan through Chapter 13 bankruptcy.
Although it can eliminate your debts, bankruptcy comes at a cost to your credit score, affecting your ability to take on loans or make big purchases.
If you feel bankruptcy is your best option, seek legal advice through a law firm.
Debt forgiveness occurs when a lender cancels all or some of an individual's debt. Not all debts qualify for debt forgiveness. Student loans, mortgages, and taxes are some of the more common types of debt forgiven.
Forgiveness programs are typically offered through federal or state government agencies. To qualify for this type of debt relief, you'll need to meet specific requirements such as low-income level or your profession. For example, the federal government offers student loan forgiveness to teachers who've taught for a certain number of years in public school classrooms.
Debt and Financial Hardship Resources
Below are some of the resources that can offer help to indebted individuals in the state of Louisiana.
Temporary Assistance Programs
Family Independence Temporary Assistance is a public assistance program that provides financial aid for children in homes where they lack appropriate financial support from their parents.
State Health and Human Services
Louisiana Low Income Home Energy Assistance provides eligible households with assistance meeting their monthly utility bills.
Rural Rental Housing or Farm Labor Housing helps make rent payments for low-income households.
The Child Care Assistance Program provides financial assistance to low and very low-income families to help them access high-quality childcare while parents attend work or school.
Shelters for the Homeless
The Louisiana Housing Corporation has a mission to provide housing for every Louisiana resident. This program offers solutions to anyone at risk of homelessness or already experiencing homelessness.
Louisiana Health Connect ensures Medicaid recipients can get to their appointments.
Seniors Mobility offers free transportation services to seniors who are residents of Louisiana.
It's Possible to Become Debt Free in Louisiana
No matter how much debt you have racked up, you can become debt free and even work toward financial freedom. You just need access to the right resources. At TurboDebt, we offer debt solutions structured to meet your unique financial situation and help you get a fresh start.
TurboDebt is here to help. We’re on your side and want to see you live debt free. Get started today by completing a free consultation with one of our specialists. All it takes is a phone call or click.