Missouri Debt Relief

In a Nutshell

If you're like many other Missouri residents, you're dealing with credit card, loan, or medical bill debt that's growing faster than your income. Average consumer debt grew by 3.9% across the U.S. in 2021. Increased costs for essential items like food, utilities, and other essentials due to high inflation negatively impact the livelihood of Missourians, leading to the accumulation of individual debt.

This article will provide guidelines for mitigating the different types of debts that local residents face through various Missouri debt relief programs.

How to Get Help from a Missouri Debt Relief Program

The most beneficial debt relief programs tend to involve the process of debt negotiation for a reduced debt settlement option either through the following;

• lower interest rates
• reduced principal amount
• cancellation of late interest fees

This process isn’t straightforward for most Missourians, so you'll need a trusted debt relief company like TurboDebt to help you set up a debt relief program. This reduces your chances of getting scammed or having to continue paying high repayment charges.

Missouri's Economic Picture at a Glance

In March of 2023, Missouri's unemployment rate sat at 2.5%, with 62.8% of Missouri’s residents employed per 2021.

Such tight employment data has resulted in a median household income of $61,043 in Missouri compared to the national average of $69,021. This means that many consumers spend more than they save, and many have to borrow or defer payments to meet their basic requirements, resulting in a never-ending debt cycle.

How Do Debt Relief Programs Work in Missouri?

Debt relief programs in Missouri take advantage of one of the following options:

• Debt management plans
• Debt consolidation loans
• Debt settlement
• Credit counseling
• Filing for bankruptcy
• Debt forgiveness

Read on to learn more about each of these types of debt relief solutions, with statistics about the types of debt Missouri residents face. 

Missouri Debt and Finance Statistics

Average Consumer Debt

The average consumer debt in Missouri was $79,460 in 2022, with credit card debt, auto loans, mortgages, and student loan debt contributing to this average.

Credit Card Debt

Credit card debts are considered unsecured, acting as a personal loan when you purchase something through a credit card account. Because of high interest rates and late fees, these amounts can grow to the point where you might want consider a debt relief program or alternative debt management solutions to alleviate unsecured balances.

The average credit card debt Missourians owe is $5,185, below the nation’s average of $5589. Many Missourians are seeking the help of debt relief companies to lower or fully settle their debt.

Auto Loan Debt

Auto loans are secured loans used to purchase a car, which can be repossessed when you default on the loan payment. The average Missouri resident carried an average debt of $20,473 in auto loans in 2021, up 5.7% from the year prior.

Mortgage Debt

The homeownership rate in Missouri is 68.8% and the median property value is $220,992, an increase of 7.7% from the previous year

This has also led to an increase in the median gross rent in Missouri to $886, which is below what the average American pays at $1,163. Mortgage payments in the state are at a monthly average of $1,316.

Student Loan Debt

A total of 30.7% of the population in Missouri has attained a bachelor’s degree or higher. This accounts for an average federal student loan debt of $35,645 for college-educated residents of the Show Me State. 

Bankruptcy

In 2022, the total number of bankruptcy cases filed in the state of Missouri was 8,584. Chapter 7 bankruptcy cases led with 4,637 cases filed, followed by Chapter 13 bankruptcy cases at 3,926, while Chapter 11 bankruptcy accounted for only 20 filed cases. However, this was a decline in the number of bankruptcy cases compared to the 9,737 total bankruptcy cases filed in 2021.

Average Income and Employment

In March of 2023, Missouri’s unemployment rate was 2.5%, well below the national average of 3.6%.

The average household income for Missourians was $61,043 in 2021, which was an improvement on the previous year’s median household income of $57,290.

Credit Scores

The average credit score in Missouri increased from 711 to 712 in 2022. This implies that the residents of Missouri are in a good position to access low-interest loans for debt relief.

Identity Theft

Missouri ranks number 24 in identity theft cases, with 12,089 incidents reported in 2022. The top form of identity theft in the state is credit card fraud, which accounts for 43.7% of all incidents.

Banking and Tax Info

Missouri residents are subjected to an income tax of 1.5% to 5.4% and a state sales tax of 4.22%. Local tax rates vary, for example, with St. Louis collecting 9.679%, Kansas City at 8.6%, and Columbia at 7.975%.

How TurboDebt Helped Missouri With Our Debtr Relief Program

In 2023, TurboDebt had a total number of 4,191 debt relief clients in the state of Missouri. Out of this, 1,264 clients enrolled in our debt relief program, bringing the average enrolled debt to $19,720.

Our debt relief services saved Missouri residents up to 53.68% of their total enrolled debt before fees. If you’re looking for relief, consider choosing a debt relief option with a trusted debt relief company like ours.

Top Types of Debt to get Relief from in Missouri

Residents of Missouri can expect debt relief options from TurboDebt for the following types of debt;

Credit Card Debt

Credit card debt is one of the leading causes of recurring debts for most Americans. Making minimum payments to defer your monthly bills can put you in a revolving cycle of debt. Our team of expert credit counselors can help you get out of this cycle of debt through one of our debt relief programs. Consider contacting TurboDebt for a free credit counseling session.

Divorce Debt

Ending a marriage and facing overwhelming amounts of debt can burden your life. Divorcees often accumulate heavy debts because the average divorce proceedings require from $15,000 up to $100,000, depending on the complexity of the divorce hearings.

If you're reeling from a divorce debt, contact the experts at TurboDebt. We can help curate a debt relief option to help you overcome indebtedness after a divorce. It all starts with a free consultation, so don’t hesitate to get in touch with us.

Business Debt

Though Missouri has a business filing fee of only $50, which is conducive for starting a business in comparison with other states, your business growth might be slowed because of state and local tax rates.

What’s more, you might lose your creditworthiness due to accumulating tax burdens and high operation costs as you take on business debt through personal finances. At TurboDebt, we’re passionate about helping business owners restore their creditworthiness through our debt relief programs. 

Medical Debt

In total, 11.3% of the population of Missouri lacks health insurance coverage. This makes it difficult for people to access affordable medical treatment, especially after the effects of the pandemic on employment.

At TurboDebt, we take pride in helping people pursue a personalized debt relief option for accumulated medical debt.

Homeowner Debt

You may feel overpowered by your homeowner debt, especially when you consider the instability of the housing market among soaring interest rates. You may even face foreclosure if you're stuck with back payments on a home equity line of credit (HELOC). 

At TurboDebt, we've helped thousands of clients overcome outstanding payments like mortgage debt, so take advantage of our free consultation today.

Retirement Debt

Rising inflation can quickly eat up all of your retirement savings, leaving you strapped with debt on a fixed income.

TurboDebt debt relief programs are tailored to help you through retirement by linking you with relevant debt and financial hardship resources and educating you on ways to manage your retirement debt. We’d love to see you enjoy a debt-free retirement life, so contact us now for help.

Options for Debt Relief Programs in Missouri

At TurboDebt, we offer effective debt relief programs for residents of the state of Missouri. We can help achieve this by negotiating for a debt settlement which may include reduced payments, faster repayment time, and affordable monthly payments, resulting in a 52.06% savings before service fees for our clients.

In our debt relief program, you’ll discuss your financial ambitions with one of our experts, settling on a particular debt relief program. To find out more, take advantage of our free consultations.

There are several debt relief options for residents of Missouri, including the following:

Debt Management Programs

Debt management programs can work as effective options for residents with low credit scores, multiple high-interest credit accounts, and other unpaid balances.

Debt management companies often combine all the personal debts you owe and negotiate for reduced interest rates from your creditors. This can result in a low monthly repayment plan over a prolonged timeframe, thus, improving your debt-to-income ratio and FICO score, especially when you make timely deposits. A debt management plan may also reduce the number of monthly repayments and leave you with more cash to cover your expenses.

You’ll be depositing the funds in a checking account, using the debt relief company to make payments to creditors on your behalf. You won’t have to deal with lenders once you enroll in a debt management program. This protects the consumer from unfair debt collection practices like incessant phone calls. 

Debt Consolidation Loans

A debt consolidation loan is another form of debt relief. For it to work effectively, you'll need a good credit rating to access low-interest-rate loans from financial institutions.

To pay off your outstanding debts in a lump sum, you'll apply for a consolidation loan, which you can use to pay off all your unsecured debt. Typically, debt consolidation offers fixed interest rates and low monthly repayment fees, giving you more financial flexibility.

Debt Settlement

Debt settlements are ideal for Missouri residents with large cash debts who want to avoid filing for bankruptcy. In this option, a debt relief agency negotiates with your creditors for reduced interest rates and lower principal amounts. Debt relief companies often reduce your principal amount by 50%, helping you to get out of debt quickly.

A reputable debt settlement company can help you negotiate for a lump sum payment of a reduced principal amount, as you make consistent monthly deposits into a checking account once the organization reaches an agreement with your lenders.

During the negotiation process, you’ll stop making monthly payments to lenders since they’ll be paid from the lump sum payment you’re saving.

Credit Counseling

Credit counseling agencies offer advice on how you can budget for your debt and work to restore your credit. Credit counselors can also recommend a suitable debt repayment plan. You can find both non-profit and private credit counseling agencies that’ll offer assistance in changing your financial situation.

Once you’ve figured out a repayment plan with your credit counselor, you can make plans to pay off your lenders. Whether you choose non-profit credit counseling or a private organization, these programs typically offer financial education and access to free credit report copies.

Bankruptcy

Filing for bankruptcy is the last debt relief option that some Missouri pursue when they can’t find a way to repay their unsecured debt. The U.S. Bankruptcy Code offers different alternatives for filing for bankruptcy, and outcomes for filing different chapters can include the following:

• Chapter 7: Here, the court appoints a trustee to liquidate some of your assets to pay off creditors. Also, some or all of your debt may be written off once the petition is filed.
• Chapter 11: This option offers Missouri-owned businesses the opportunity to restructure their debts with the approval of their creditors and the court. Missouri residents can also pursue this option in some cases.
• Chapter 12: This option can help families dependent on farming and fishing in Missouri. They should be willing to pay off their debts so that they can petition for an extended repayment plan.
• Chapter 13: Another option for individuals with heavy debt, this type of bankruptcy involves restructuring debt when you have a regular income. However, your repayment period will be limited to 5 years with a third-party collection agency, approved by the court, handling the repayment plan.

To learn more about specific bankruptcy proceedings, consult a legal professional for legal advice. It's also important to note that bankruptcy can affect your credit report for a minimum of 7 years, thus, limiting your credit borrowing capabilities.

Debt Forgiveness

Qualifying Missouri residents can earn debt forgiveness where a part or the entire debt is forgiven. This occurrence isn’t as frequent as other debt-relief options, but the types of debts that can be forgiven include the following:

• Student loans
• Medical bills
• Tax debts
• Mortgages

However, you’re obligated by the IRS to file for an income tax for the forgiven debt that’s above $600. You'll also have to meet specific requirements, often from a governmental organization at the federal or state level. 

Debt and Financial Hardship Resources for Missouri Residents

The state of Missouri has several debt and financial hardship resources designed to help residents facing adverse economic conditions, such as unemployment or foreclosures.

A good number of Missouri residents have turned to these institutions, especially after the onset of the pandemic, which disrupted supply chains and employment opportunities. Here are five debt and financial hardship resources available for Missouri residents.

Temporary Assistance Programs

The Administration for Children and Families (ACF) and the United States Department of Health and Human Science (HHS) oversee temporary assistance programs with the following goals:

• Helping families in need with clothing, utilities, and other essential services care for their children.
• Limiting the number of out-of-wedlock pregnancies
• Championing for the formation and maintenance of two-parent families
• Preparing parents in need of job opportunities by enrolling them in the Missouri Work Assistance program (MWA), where they’ll learn to be job-ready, find employment, and gain work experience.

Cash benefits from temporary assistance last for a maximum of 45 months unless you’re an underage parent or guardian attending school, disabled, a caregiver to a disabled person at home, or above 60 years of age.

State Health and Human Services

Missouri’s State Health Insurance Assistance Program provides health assistance by accessing and understanding the Medicare benefits and the Affordable Care Act insurance for the residents of Missouri.

Also, the U.S. Department of Health and Human Services provides financial aid for low-income households that care for under-aged kids in Missouri. However, you must participate in the MWA program to be eligible for this type of aid.

You can contact the St. Louis Area Agency on Aging (SLAAA) to gain more insights into the program’s role in administering state health and human services. 

Child Care

Missouri has several child care programs aimed at supporting underinsured and uninsured kids by providing access to healthcare benefits. Some of these programs include the following;

• Vaccines for Children program: This program helps uninsured and underinsured kids below 19 years have free access to vaccines to limit the spread of diseases.
• Medicaid and Children’s Health Insurance Program (CHIP): The ChIP program offers free or low-cost health coverage for children in Missouri. It includes dental care, routine checkups, and immunizations.
• Special Supplemental Nutrition Program for Women, Infants, and Children (WIC): Pregnant, breastfeeding, postpartum women, infants, and kids under 5 years who are at risk of a nutritional deficiency benefit from this program through nutrition education, healthcare referrals, and supplemental food allowances.
• Missouri's Child Care Subsidy Program: This program provides child care to qualified parents and guardians who have kids under the age of 13.

Shelters for the Homeless

The Kansas City Project Hope facilitates homeless residents of Kansas City with affordable permanent housing solutions. It also helps residents who are facing foreclosures and those who can’t come up with their utility bills and rents by finding alternative housing solutions.

Also, there are many homeless shelters throughout the state where residents can go for transitional housing opportunities. 

Free Transportation Services

The St. Louis Area Agency on Aging also offers discounted and free transportation services to the elderly (above 60 years) and residents with disabilities between 18-59 years. These services run from Monday to Friday, between 7:30 am and 5 pm, and you must book your reservation 2-3 days prior.

Finding Debt Relief in Missouri

Debt relief programs offer a way to relieve your recurring debt burdens. However, you should do the due diligence of validating a debt relief company when pursuing debt relief options to avoid being scammed. Check for online reviews and accreditations either on the company website or through Missouri's Better Business Bureau (BBB). 

You can seek help today from a reputable debt relief company like ours. At TurboDebt, we make it easy for you to achieve a debt-free life by offering a free debt relief consultation. Take advantage of it today!