Debt Relief for Missouri Residents
4 MIN READ
Published April 08, 2023 | Updated May 13, 2025
Written by Christie Hudon
Edited by Wes Silver
Turbo Takeaways
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 $147 billion across the U.S. in 2024.
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. In a challenging economic landscape, it’s important to understand your options for getting out of debt.
This article will provide guidelines for mitigating the different types of debts that residents face through various Missouri debt relief programs.
Your Options To Get Out of Debt in Missouri
Credit Counseling
Working with a certified credit counselor offers Missouri residents cost-effective advice on managing debts.
Get professional advice from a credit counselor who’s certified to help consumers navigate financial hardship.
| How It Works in Missouri |
| Missouri debtors connect with a certified credit counselor who walks them through the process of paying off debts. |
| Pros |
| Credit counseling provides monetary advice tailored to your unique financial situation. Many organizations also offer financial education courses to help you avoid future debts. |
| Cons |
| While their advice is helpful, credit counselors don’t actually make any payments on your debt. It’s up to you to take their advice and use it to get back on track financially. |
| Cost |
| Credit counseling services typically charge a small enrollment fee, but low-income residents may qualify for no-cost services. |
| Stats |
| In the past decade, the number of consumers enrolling in credit counseling programs has remained primarily unchanged, while those enrolling in debt settlement have continued to increase. |
| Resources |
| Find out how credit counseling provides insightful advice for consumers in the Show Me State. |
Debt Management
A debt management program (DMP) allows Missouri residents to organize monthly payments.
| How It Works in Missouri |
| Missouri consumers typically work with a credit counseling agency to set up a monthly payment plan. The organization then distributes funds to each of your creditors on your behalf. |
| Pros |
| Using a DMP takes the stress out of making consistent payments to each creditor you owe. Credit counselors may also negotiate for lower interest rates and waived fees on your debts. |
| Cons |
| A DMP doesn’t reduce what you owe. Instead, it’s a tool for making on-time payments and simplifying the bill-paying process. |
| Cost |
| You’ll pay a monthly fee for each and every account that’s part of the DMP, along with an initial setup fee. |
| Stats |
| Missouri carries an average debt-to-income (DTI) ratio of 1.215, showing that for every dollar earned, residents owe even more. |
| Resources |
| Learn how debt management programs aid consumers to determine if this debt relief method is your best option. |
Debt Consolidation
Missouri residents often use debt consolidation methods to simplify payments and reduce interest.
| How It Works in Missouri |
| Consumers with high credit card debt may benefit from opening a zero-interest balance-transfer credit card to pay off big balances. Others can pursue a debt consolidation loan to reduce their number of creditors to one. |
| Pros |
| Debt consolidation is a debt-relief approach that limits fees and reorganizes your payment structure. It can also reduce what you pay in interest if you lock in a low enough rate. |
| Cons |
| If you fail to pay off your credit card debt within the introductory zero-interest period, you could end up paying an exorbitant interest fee on your new card. You could also take longer to pay off debts using a consolidation loan. |
| Cost |
| The cost of both methods depends on your current debt balances. For debt consolidation loans, you’ll also pay interest depending on your debt and credit score. The higher your score, the more likely you are to qualify for lower interest rates that reduce your total payoff amount. |
| Stats |
| In 2024, the average credit score in Missouri was 705, putting many residents firmly in the “good” category, which is ideal for securing a debt consolidation loan at a favorable interest rate. |
| Resources |
| Read more about debt consolidation loans to learn if they’re the right choice for your financial situation. |
Debt Settlement
Settling debt eliminates part of your outstanding balance and makes paying off debts achievable.
| How It Works in Missouri |
| Show Me State residents connect with a debt settlement organization that negotiates a reduced payoff amount with creditors. You’ll put money into a savings account managed by the settlement company until you collect enough funds to pay off debts. |
| Pros |
| Debt settlement helps you pay debts faster for less than what you owe. This method is especially effective for high credit card balances that keep compounding interest. |
| Cons |
| Because this method involves holding off payment until you can make the full settlement, your credit score usually drops until you start making consistent payments again once you’re debt-free. |
| Cost |
| You’ll owe a fee of 15-25% of your enrolled debt to the organization after they complete your settlement. |
| Stats |
| In Missouri, the average credit card debt was $6,065 in Q3 of 2024. |
| Resources |
| Discover how debt settlement works and how it reduces your total debt payment. |
Debt Snowball/Avalanche
These DIY debt-relief methods guide Missouri consumers in paying off balances based on their size or interest rate.
| How It Works in Missouri |
| Using the debt snowball method, Missouri residents pay off debts from smallest to largest, building momentum from little wins along the way. Debt avalanche means you attack debts with the highest interest rate first. |
| Pros |
| Since snowball and avalanche are self-managed, you won’t owe any fees to an organization for handling your debts. |
| Cons |
| Because these methods are self-managed, clearing debt depends on your commitment to making monthly payments based on your income and budget. |
| Cost |
| Debt snowball and avalanche don’t cost anything to complete. |
| Stats |
| According to Ramsey Solutions, the organization that originated the debt snowball method, managing your personal finances is based 80% on your behavior and only 20% on your knowledge. That’s why jumping into a debt-relief plan can help you clear debts, even if you’re not a financial expert. |
| Resources |
| Find out how debt snowball and debt avalanche can help you become debt-free. |
Bankruptcy
After trying other debt relief methods unsuccessfully, bankruptcy is a last resort for Missouri residents.
| How It Works in Missouri |
| Individual consumers file either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 involves selling off assets to pay creditors, while Chapter 13 uses your existing assets to create a payment plan. Both options use the Missouri Bankruptcy Court, where a judge will decide what and how you pay back creditors. It’s also a good idea to complete the process with the aid of a bankruptcy attorney. |
| Pros |
| Bankruptcy can give you a clean financial slate and eliminate certain outstanding debts. |
| Cons |
| Filing for bankruptcy negatively impacts your credit history and score for up to 10 years. |
| Cost |
| Bankruptcy proceedings involve legal fees plus the cost of whatever you’re ordered to pay to creditors. |
| Stats |
| Over 9,500 Missouri residents filed for bankruptcy in 2024. |
| Resources |
| Learn more about life after bankruptcy to decide if this debt-relief process is worth it. |
What You Need To Know About Debt in the State of Missouri
Statute of Limitations on Debt Collections in Missouri
Missouri’s Statute of Limitations on Debt Collections limits how long a creditor can take legal action against a consumer when they don’t pay a debt. Although this doesn’t absolve debtors, it allows consumers to try paying off debts after the time limit expires without risking a lawsuit.
It’s important to note that Missouri has some of the longest statutes of limitation on written contracts and medical debt, meaning creditors can take legal action for many years after the original contract when you haven’t paid off debts.
| Type of Debt Agreement | Length of Time Collectible |
|---|---|
| Written Contracts | 10 years |
| Promissory Notes | 3 years |
| Open-Ended Accounts | 5 years |
| Oral Agreements | 6 years |
| Medical Debt | 10 years |
Student Loan Forgiveness in Missouri
Show Me State college-educated residents carry an average student loan debt of $35,675, aligning with the rest of the nation.
To help residents who’ve completed medical school pay off educational debts, Missouri offers several loan repayment programs, including the following:
- Health Professional Loan Repayment Program (HPLRP): This program offers forgivable loans in exchange for two years of service in an underserved area.
- Health Professional Student Loan Repayment Program (HPSLRP): The HPSLRP program awards up to $50,000 per year to Primary Physicians and Dentists licensed in the Show Me State.
Resources for Financial Assistance in Missouri
Although Missouri stimulus checks helped some residents throughout the Pandemic, no additional funds are planned for 2025 or thereafter. However, multiple financial assistance programs offer ongoing support to Show Me State residents in need, including:
- Temporary Assistance (TA): Missouri offers TA, which provides monthly cash benefits to help families cover expenses and necessities like clothing and utilities.
- Supplemental Nutrition Assistance Program (SNAP): The SNAP program gives needy residents monthly benefits to buy nutritious food.
- Missouri Medicaid: Missouri offers healthcare coverage for parents or caretakers with children, plus uninsured women, seniors, and individuals with disabilities.
- Women, Infants, and Children (WIC): This program provides supplemental food, education, health care referrals, and breastfeeding support for pregnant, breastfeeding, and postpartum women, as well as children up to age five.
Get Professional Help Paying Off Your Debt
When you decide to pursue debt relief, it’s important to work with a reliable partner. TurboDebt® offers trusted debt relief services backed by over 20,000 5-star reviews on Trustpilot and Google.
In 2024, our debt relief services helped Missouri residents save up to 53% of their total enrolled debt before fees. If you’re looking for relief, enrolling in a debt relief program may be one of the most effective ways to reduce what you owe.
Contact our experts today to discover how much you could save while paying off debt faster. Start your journey toward debt-free living and read more of our consumer resources to stay out of debt for good!
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