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
Get professional advice from a credit counselor who’s certified to help consumers navigate financial hardship.
How It Works
Missouri debtors connect with a certified credit counselor who walks them through the process of paying off debts. Working with an accredited advisor offers MO residents cost-effective guidelines on managing debts.
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
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
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 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
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 programs help consumers determine if this debt relief method is the best option for them.
Debt Consolidation
Missouri residents often use debt consolidation methods to simplify payments and reduce interest.
How It Works
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
- 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
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.
- A strong credit score 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
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
- 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
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.
Bankruptcy
After trying other debt relief methods unsuccessfully, bankruptcy is a last resort for Missouri residents.
How It Works
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
- 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
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 (PDF) in 2024.
Resources
Find out more about life after bankruptcy to decide if this debt relief process is worth it.
DIY Debt Relief
DIY debt relief methods guide Missouri consumers in paying off balances based on their size or interest rate.
How It Works
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
- 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.
- 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.
What You Need To Know About Debt in 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 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 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 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!