Nebraska Debt Relief Programs in 2025

Nebraska: A Financial Snapshot

Nebraskans know that the Cornhusker State is a pretty great place to live. Nebraska's debt-to-income ratio is 1.25, relatively low compared to many other states.

Nebraska’s largest industries are corn, wheat, & soybean wholesaling, along with meat, beef, & poultry processing. More Nebraskans are employed in the healthcare and social assistance sector than in any other part of the state’s economy.

Overall, Nebraskans struggle with less debt than residents in other areas of the country. However, this does not mean that Nebraskans live completely free from debt. In 2022, average consumer debt rose 3.4% in the Cornhusker State.

The two biggest sources of debt in Nebraska are mortgage and student loan debt. Fortunately, living in Nebraska is relatively affordable, and the state boasts lower-than-average unemployment rates.

Credit Card Debt

Nebraska ranks 37th in the country for credit card debt, with an average credit card balance of $6,355. This is well below the national average of $7,236.

Student Loan Debt

Student loans represent a large source of debt for Nebraska and the rest of the country. Nebraska's average federal student loan debt is $32,377. In total, Nebraskans seeking higher education owe $7.9 billion in student loans across the Cornhusker State.

Bankruptcy

In 2024, a total of 2,417 individuals filed for bankruptcy in the state of Nebraska. The most common path for individuals is filing either Chapter 7 or Chapter 13 bankruptcy.

Average Income and Employment

The median household income in Nebraska is $74,985.

As of November 2024, the unemployment rate in Nebraska was 2.8%, much lower than the national average of 4.2%.

Credit Scores

The average credit score in Nebraska is 720, a relatively strong number well above the national average. You can check your credit score by ordering a free credit report once a year from Experian, Equifax, or TransUnion.

Top Types of Debt Nebraskans Need Relief From

Debt relief helps residents of Nebraska find relief from many types of debt. Some of the reasons Nebraskans find themselves in debt are high credit card usage, business and homeowner expenses, and outstanding medical bills.

Credit Card Debt

Credit card debt hit an all-time high of $986 billion in the last financial quarter of 2022, rising ever since. This steep rise topped the pre-pandemic figure of $927 billion. With credit card debt at a new high, 2024 saw figures topping $1 trillion.

When you prepare to pay your credit card bill each month, you will have the option to make a minimum payment or pay off the entire balance for that billing period. If you only pay the minimum payment, you will be charged interest on the remaining balance. This is one of the ways credit card debt can quickly spiral out of control.

Divorce Debt

When a couple divorces, most debt incurred during the marriage is considered a joint responsibility, including credit card debts and mortgages. Financial stress is known to strain relationships, and a large amount of debt can increase the likelihood that you and your partner will divorce. Once the divorce is finalized, the debts are still left to be paid.

Divorce itself can also be costly. In Nebraska, it costs at least $8,000 to file for divorce. If the divorce is contested and you need a lawyer, you'll also pay an hourly fee.

The more disputes there are to settle, the more you will end up paying your lawyer. The average divorce in the US costs over $15,000.

Business Debt

Almost all businesses will have some amount of debt. However, business debt can be classified as “good” and “bad” debt. Good debt is money that a business owner borrows to invest in growing their business. Good business debt increases the company’s overall net worth.

Bad debt, on the other hand, is debt that a business will have a hard time repaying and will decrease the overall net worth of the company. A bad debt is any debt the business can't reasonably pay off in the expected time frame.

Medical Debt

Nebraskans carry an average medical debt of $3,294, with 7.2% of the population in collections for medical bills.

The point of health insurance is to make sure that all Americans can afford necessary healthcare. Unfortunately, that is not always the case. Many people do not have health insurance at all.

Even for those who do have insurance, their coverage might not cover every test, visit, treatment, or procedure. In either case, the patient is expected to pay for their care out of pocket.

If they do not have the cash on hand to make the payment, they will have to use a line of credit. This could mean charging the bill to a credit card, taking out a payday loan, or borrowing against their home’s equity.

Homeowner Debt

The largest source of homeowner debt in the United States comes from mortgages. In Nebraska, mortgage values rose by 6.5% in 2022.

Owning a home also requires extensive upkeep and maintenance, usually from trained professionals. Even if homeowners are diligent about having their property serviced, an accident or natural disaster could still result in property damage.

In the event of an unexpected emergency, homeowners may also have to take out personal loans to pay for repairs.

Retirement Debt

In order to comfortably retire in Nebraska, the average adult can expect to spend $1,002,765 over the remainder of their life. Americans aged 55-65 have an average of $197,322 in savings.

As they get older, health complications or increased support needs may force retirees to dip even further into their savings or take out loans. Any loans you have at the time you retire will still need to be paid off in full, even if you no longer have a steady income.

Debt Relief Options in Nebraska

Having outstanding debts can take a huge toll on you financially and emotionally. Fortunately, there are several debt relief options in Nebraska for those who need them.

Below are some of the most effective strategies for debt relief in Nebraska:

Credit Counseling

Credit counseling is usually offered at little to no cost through nonprofit organizations. A credit counseling agency will connect you with one-on-one support and mentorship from a credit counselor.

Your counselor will review your current financial position and help you develop a plan for budgeting and repayment so you can escape debt.

Debt Management Programs

If you have multiple sources of debt, keeping track of all your monthly payments to many accounts can make paying them off even harder. A debt management program helps make repayment easier by combining all of your separate monthly payments into one.

You will still owe the same principal debt amount, but your repayment plan will be more organized. You may be eligible for lower interest rates or fee waivers, decreasing the overall cost of paying off the debt in the long term.

Debt Consolidation Loans

Debt consolidation loans are similar to debt management plans. They streamline the repayment process by consolidating all of your payments into a single loan.

When you apply for a debt consolidation loan, you apply for a new credit account that is equal to the total amount of debt you owe. You then use that credit to pay off your existing accounts, leaving you with a single monthly payment and eliminating your debts.

Just like with any other line of credit, you will need to apply and meet the lender’s eligibility requirements. If you do not have a good credit score due to your existing debts, this may be difficult but not necessarily impossible. If most of your debt comes from credit cards, you may be able to consolidate your payments with a balance transfer card.

Debt Settlement

You can also work with a debt settlement company to negotiate with your creditors for a reduced payoff amount. While you'll still be responsible for paying off some of the debt, you won't have to pay the full amount.

Once you enroll in a settlement program, experts will negotiate with your creditors to reduce your debt by up to 50% of what you currently owe. Next, you'll make monthly payments to the settlement company that manages your account. You'll also pay a fee to the organization based on the total debt you enroll.

Bankruptcy

Those unable to pay their outstanding debts may opt to file for bankruptcy. Bankruptcy allows the borrower to achieve debt forgiveness while also ensuring that the lender gets some form of repayment.

The two most common types of bankruptcy are Chapter 7 and Chapter 13:

• Chapter 7 bankruptcy is used to erase unsecured debts like credit card balances or medical bills. When an individual files for Chapter 7 bankruptcy, they sell off their non-exempt assets to pay back as much of their debt as possible.
• Chapter 13 bankruptcy allows the debtor to keep all of their property and gives debtors the chance to repay their debts in installments over the course of 3 to 5 years.

Debt Forgiveness

Some lenders or creditors may offer debt forgiveness programs to those who are experiencing financial hardship. If you seek debt forgiveness, a portion or all of your debt may be erased, meaning you are no longer responsible for paying back that money.

To earn debt forgiveness, you must qualify for a program based on factors like type of employment and income level. Common programs include mortgage, student loan, and tax debt forgiveness.

Debt and Financial Hardship Resources

Are you struggling to pay your debts and bills in Nebraska? In addition to seeking debt relief, you can also take advantage of the following financial assistance programs to help ease your financial burden:

Temporary Assistance Programs

Temporary Assistance for Needy Families (TANF) is a federal program that provides cash assistance to families with dependent children living below the poverty line. Nebraska administers TANF funds through Aid to Dependent Children (ADC).

Adults who are able to work are provided services through the Employment First program to help families achieve economic self-sufficiency. Families in which a parent can work are limited to 60 months of cash assistance in their lifetime. If a child is not in the care of their biological parents or the parent is disabled, there is no limit.

Note: There are no stimulus checks for Nebraska residents anymore.

Nebraska Health and Human Services

Nebraska’s Department of Health and Human Services (DHHS) administers the state’s SNAP and WIC programs.

Through the Low-Income Home Energy Assistance Program (LIHEAP) and the Low-Income Household Water Assistance Program (LIHWAP), the DHHS provides Nebraska residents in low-income households essential utilities at a discounted rate.

The department also provides assistance for those with disabilities and special healthcare needs.

Shelters for the Homeless

The Nebraska Homeless Assistance Program (NHAP) provides supplementary funds to community agencies that aid homeless or nearly homeless Nebraskans. Funding goes toward street outreach, emergency shelters, homeless prevention, and rapid rehousing.

Free Transportation Services

Madonna Medical Transportation (MMT) and Medicaid Transportation Company (MTC) provide no-cost door-to-door transportation with a Medicaid waiver in and around Lincoln and Omaha.

InetlliRide helps those receiving services through DHHS arrange transportation for non-emergency appointments. Most municipalities offer paratransit services. Check with local community organizations to see who might offer services in your area.

Child Care

The DHHS provides subsidies for low-income parents to assist with the cost of child care. The Child Care Subsidy Program is for children under the age of 12 and requires parents to be working, in school, receiving medical treatment, or otherwise unable to work.

Parents are allowed to choose their provider and may be able to have the complete cost of childcare covered, but the provider must be approved by DHHS.

Break Free from Debt in Nebraska

With various debt relief programs available in the state of Nebraska, it's never too late to take control of your financial future. Working with a credible debt settlement company like TurboDebt® can help you achieve debt-free living.

As a debt relief company accredited by the Better Business Bureau, we've collected over 20,000 5-star reviews from satisfied clients. Additionally, our team of experts has assisted Nebraskans in saving an average of 55% of their total debts owed before fees.

Contact the experts at TurboDebt today to find out how we can help you with a customized debt relief plan.