Turbo Takeaways
- The average consumer debt grew by $147 billion across the U.S. in 2024.
- Even with steady local growth, many Missouri residents are feeling the sting of everyday debt and higher interest costs.
- Debt relief programs in Missouri can help residents reduce balances faster and work toward a debt-free future.
Your Options To Get Out of Debt in Missouri
If you're like many other Missouri residents, you're dealing with personal loans, medical bills, or credit card debt that's growing faster than your income can handle.
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 essential to understand your options for managing debt. Here are the top debt relief options in Missouri for addressing various types of debts that residents encounter.
Credit Counseling
Pros
- Affordable professional guidance to manage debt and improve budgeting
- Access to personalized financial education resources
- May lead to additional relief options like DMPs
Cons
- Success depends on following counselor recommendations
- Doesn’t directly eliminate debt balances
- Small enrollment or session fees may apply
How It Works
Get professional advice from a credit counselor who’s certified to help consumers navigate financial hardship.
Missouri debtors connect with a certified credit advisor who walks them through the process of paying off debts. Working with an accredited advisor offers MO residents cost-effective guidelines on managing debts.
- Cost
Credit counseling services typically charge a small enrollment fee, but low-income residents may qualify for no-cost services. - Stats
Over the past decade, the number of consumers enrolling in credit counseling programs has remained relatively unchanged, while those enrolling in debt settlement programs have continued to increase. - Resources
Find out how credit counseling provides insightful advice for consumers in the Show Me State.
Debt Management
Pros
- Using a DMP takes the stress out of making consistent payments to each creditor you owe
- Credit counselors may negotiate for lower interest rates and waived fees on your debts
- Builds consistent repayment habits over time
Cons
- Requires closing most credit card accounts
- A DMP doesn’t reduce what you owe
- Setup and monthly service fees apply
How It Works
A debt management program (DMP) allows Missouri residents to organize monthly payments. 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.
- 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
Discover how debt management helps consumers determine if this debt relief method is the best option for them.
Debt Consolidation
Pros
- Simplifies multiple debts into one payment
- Lower rates possible for borrowers with strong credit
- Balance transfer cards can offer 0% promotional interest
Cons
- Qualification depends on credit history
- Loan or transfer fees can offset savings
- Higher rates if balances remain after promo period
How It Works
Missouri residents often use debt consolidation methods to simplify payments and reduce interest.
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.
- 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 better loan terms. - Stats
In 2024, the average credit score in Missouri was 705, putting many residents firmly in the “good” category. A strong credit score is ideal for securing a debt consolidation loan at a lower interest rate. - Resources
Read more about debt consolidation loans to learn if they’re the right choice for your financial situation.
Debt Settlement
Pros
- Especially effective for high credit card balances that keep compounding interest
- Reduces unsecured debt balances by up to 50%
- Helps pay debts faster
Cons
- Temporary credit score decline during process
- Not all creditors accept settlement offers
- Fees apply after settlements are finalized
How It Works
Settling debt not only reduces your outstanding balance but also brings you closer to financial freedom. By making consistent payments, you can overcome debt more quickly and improve your overall financial health.
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.
- Cost
You’ll owe a fee of 15-25% of your enrolled debt to the organization after they complete your settlement. - Stats
As of Q3 of 2024, the average credit card debt in Missouri reached $6,065, reflecting a steady rise in consumer borrowing. This increase highlights a shifting financial landscape for residents, who are increasingly relying on credit to manage everyday expenses and unforeseen financial challenges. - Resources
Discover the pros and cons of debt settlement and see how this debt relief solution can help reduce your total debt payment.
Bankruptcy
Pros
- Gives you a clean financial slate
- Eliminates certain outstanding debts
Cons
- Negatively impacts your credit history and score for up to 10 years
- Court and attorney costs can be significant
- Certain debts like student loans or taxes aren’t forgiven
How It Works
After trying other debt relief methods without success, bankruptcy is often the last resort for Missouri residents.
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.
- Cost
Bankruptcy proceedings involve legal fees plus the cost of whatever you’re ordered to pay to creditors. It’s a good idea to complete the process with the aid of a bankruptcy attorney. - Stats
Over 9,500 Missouri residents filed for bankruptcy (PDF) in 2024. - Resources
Find out more about life after bankruptcy to decide if this debt relief process is worth it.
DIY Debt Relief
Pros
- Since snowball and avalanche are self-managed, you won’t owe any fees to an organization for handling your debts
Cons
- Clearing debt depends on your commitment to making monthly payments based on your income and budget
How It Works
DIY debt relief methods guide Missouri consumers in paying off balances based on their size or interest rate. Using the debt snowball method, Missouri residents pay off debts from smallest to largest, building momentum from little wins along the way.
Debt avalanche refers to a debt repayment strategy where you prioritize paying off debts with the highest interest rates first. This approach can help minimize the total interest paid over time and accelerate the process of becoming debt-free.
- Cost
The debt snowball and avalanche methods incur no costs to implement, making them accessible and budget-friendly strategies for managing debt effectively. - Stats
According to Ramsey Solutions, the organization that originated the debt snowball method, managing your personal finances is based on 80% behavior and 20% knowledge. Jumping into a debt relief plan can help you clear debts, even if you’re not a financial expert. - Resources
Discover how creating a budget is the first step in managing your finances and moving towards becoming debt-free.
What You Need To Know About Debt 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.
Statute of Limitations on Debt Collections in Missouri
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 Health Professional Loan Repayment Program (HPLRP). This program offers forgivable loans in exchange for two years of service in an underserved area.
Furthermore, the Health Professional Student Loan Repayment Program (HPSLRP) 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 legitimate debt relief services backed by over 20,000 5-star reviews on Trustpilot and Google.
In 2024, TurboDebt services helped Missouri residents save up to 54% 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!