Nevada Debt Relief
17 MIN READ
Published March 24, 2023 | Updated November 10, 2023
In a Nutshell
While Nevada residents struggle with the same type of debt as others across the United States, credit card debt proves to be the biggest challenge. The state faces high levels of poverty and relies on the tourism industry, which took a major hit during the pandemic. As a result, many Nevadans are in need of financial help.
From Las Vegas to Henderson, TurboDebt offers Nevada debt relief programs that help you build a strategic plan to become debt-free in as little as 24 to 48 months. Read on to learn about debt and financial hardship resources, how debt relief works, and the most effective debt relief options available in the state.
How Debt Relief in Nevada Works
Debt relief is a strategy to help you manage your debt or loans. The goal is to reduce interest rates, develop a lower payment plan, and help you gain control of your finances.
A successful debt relief plan might help you save thousands in extra costs. For example, simply transferring a credit card balance of $1,000 with 27% interest to a new credit card with 10% interest can save you $2,040 in interest fees annually.
There are many options for debt relief in Nevada, and the right one depends on your financial situation. A debt relief counselor can help you create a plan to make your payments less overwhelming.
Debt in Nevada
Nevada residents carry debt in all forms, from medical bills, divorce debt, and student loans to credit card bills, auto loans, and mortgages. The following data and statistics will help you better understand the burden these types have debt have on people across the state.
Average Consumer Debt
Average consumer debt is the total amount owed per person for auto and student loans, mortgages, and credit cards. Nevada residents have some of the highest consumer debt in the country, with an average of $110,695 in 2022, up 5.1% from 2021.
Credit Card Debt
Nevada residents have an average credit card debt per capita of $3,860. The number of residents behind on payments reached an all-time high in 2022, with an overdue payment rate of 12% — the highest rate in the country.
Auto Loan Debt
Nevadans have some of the highest average auto loan debt rates nationwide at $22,876. In fact, the national average for car loans topped $20,000 for the first time in history in 2021.
Nevada's homeownership rate is 57.8%, compared to 64.6% nationally. Throughout 2022, Nevada's housing market was volatile, although there is still strong demand for real estate. However, median wages have not kept up with rising home prices in the state, making it hard for Nevadans to afford homes and pay off their mortgages.
Nevadans averaged a mortgage debt of $272,724 in 2022, with an average monthly mortgage payment of $1,655.
Student Loan Debt
Nevada residents have an average of $33,743 in student loan debt, though they are less likely to have debt than residents in other states. Of those with debt, about 18% owe less than $5,000.
Household debt is the combined debt of all those living in a household. According to the St. Louis Federal Reserve, Americans spent 9.7% of their income on household debt payments in 2022.
Nevada's household debt-to-income ratio is 1.8 compared to the national average of 1.01, which indicates that household debt is significantly higher than household income in the state.
The total number of bankruptcies in Nevada went down from 6,955 in 2021 to 5,523 in 2022. However, Nevada still sits above the national average, with about 1.8 filings per 1000 people compared to about 1 per 1000 nationally.
Average Income and Employment
Nevada residents have a median annual household income of $65,686 and work mainly in accommodation and food services, transportation, retail, and warehousing. The state has one of the highest unemployment rates in the country at 4.8%, compared to the national average of 3.7%.
Poverty is a particular issue for Nevadans. About 14.1% of residents live in poverty, versus 11.6% of the national population, according to the latest Census.
A credit score is a rating that shows creditors or lenders how dependable you are as a borrower. It includes data from the amounts you owe, your payment history, the length of your credit history, and the types of credit you have.
A credit score of 750 to 850 is considered an excellent rating. Nevada residents have an average score of 702, which is considered good. While great credit helps residents secure loans, it often leads to more debt that becomes difficult to manage.
In 2022, the FTC received 12,672 reports of identity theft in Nevada, one of the highest rates in the country. These include credit card theft, identity theft, bank fraud, utility fraud, and more.
Identity theft may lead to substantial debt under your name, but Nevada now has an Identity Theft Program to help restore your credit and avoid criminal charges.
Banking and Tax Info
Nevada doesn’t levy a personal or corporate income tax against residents. Instead, the state earns revenue from a high sales tax on groceries and other everyday items, an excise tax on alcohol, gambling, and cigarettes, casino taxes, and lodging taxes on hotels. This translates to an overall tax burden of 8.23% on personal income for Nevadans.
In 2021, 5.6% of Nevadans were unbanked or underbanked, meaning that these individuals needed to make transactions without a bank account. This can make it difficult to save funds or manage your personal finances.
How TurboDebt Can Help
Ongoing debt can cause stress and have a negative impact on your financial future. However, there are ways to gain control. In 2022 alone, TurboDebt consulted with 1,312 people and enrolled 437 of those through our debt relief program in Nevada.
Our clients had an average enrolled debt of $21,960, which led to $9,596,736 of total debt enrolled in our program in 2022.
We helped them build a strategy to pay down their debt amount and find a debt relief program based on their situation, and we’re committed to helping you, too.
Get Debt Relief From These Top Types of Debt in Nevada
Credit cards, personal loans, and mortgages create a substantial debt burden on your finances. Here are some of the main types of debt TurboDebt can help you relieve.
Credit Card Debt Relief
About 11% of Nevadans have missed credit card payments for 90 days or more. Missed payments damage your credit score and lead to penalty fees and a collections risk. On top of that, high interest means your unpaid balances keep increasing.
This cycle can be frustrating, but TurboDebt can help you develop a plan to pay off your credit card debt balances and find debt relief.
Divorce Debt Relief
In Nevada, all property and debt accumulated throughout a marriage is considered community property and must be divided equally when the marriage ends. This means you may end up with new debt on top of the legal costs of a divorce. Working with a credit consultant may help you get your finances back together as you make a fresh start.
Business Debt Relief
As of June 2022, Nevada business loans increased by 14% at credit unions alone following the pandemic. However, high interest and inflation, cooling real estate and gambling markets, and slow sales squeeze profits and make it difficult to pay off business debt. TurboDebt can help you create stability and confidence in the future of your business with a relief plan.
Medical Debt Relief
Crushing medical debt is a common issue for Americans and Nevadans alike. About 20% of U.S. citizens carry medical debt, accounting for 58% of the bills in collections.
New Nevada laws require collection agencies to provide notice before collections start, giving you a chance to take action. A debt relief company like TurboDebt can help you negotiate fees with creditors and manage your payments to help alleviate your medical debt.
Homeowner Debt Relief
Interest rates have soared since the pandemic, affecting home buyers and homeowners, especially those with variable interest rate mortgages. With this type of mortgage, more of your payment goes to your principal when interest rates are low. But as interest goes up, you face higher interest fees on your monthly payment.
For instance, imagine you took out a variable-rate mortgage loan for $200,000 on a term of 30 years and an interest rate of 3% initially. In this case, your monthly payment would be $843.21. However, if interest rates go up by 1%, your interest rate would increase to 4%. In this case, your monthly payment would increase to $954.83. This can make it more difficult to afford your payments.
With our free consultation, we can help you find a way to take action and ease the stress of paying off your homeowner or mortgage debt.
Retirement Debt Relief
Changes to your financial situation, whether it's an emergency situation or losing a job, can burn through your savings and make it hard to save for retirement. You might resort to credit cards or loans to pay for your basic needs. A debt relief company like TurboDebt can help you reorganize your debt and find financial resources to get back on track.
Options for Debt Relief in Nevada
When debt weighs on your mind, managing your finances for everyday living can be difficult. Discovering options to relieve your debt can help you change your financial situation. Below are the most common debt relief programs to pursue.
If you’re struggling to understand which option is right for you, take advantage of our free debt relief consultation so we can help.
Debt Management Programs
A debt management program is an agreement between you, a debt relief organization, and your creditor to lower your debt or change repayment terms.
Under a debt management plan, a debt relief professional helps set your terms and interest rates with creditors, assisting you in securing smaller monthly payments. You then agree to pay the organization, which distributes your money to creditors for you.
Debt Consolidation Loans
A debt consolidation loan is when you roll all your debt balances into one monthly payment. By taking out a loan for the total debt amount, you can pay off your outstanding balances in a lump sum. This strategy is often effective for lowering your interest rate if you have good credit.
Debt consolidation loans are a popular option among Nevada residents with multiple credit card balances. Note that some credit card and financial loan companies offering zero or low interest rates may only do so for a limited time.
Debt settlement occurs when you or a professional negotiate your debt amount with your creditor or a debt collector. You can hire a debt settlement company to settle for you. Alternatively, you can talk to your creditors yourself and explain your situation to get a payment plan you can afford.
Debt settlement companies are often able to reduce your debt by up to 50%. By setting up a payment plan through their organization, you agree to put funds into a savings account the organization uses to pay your creditors. You then pay fees to the company for managing your settlement.
Not all credit card or loan companies will agree to debt negotiation, but it can be an effective option. If you feel stuck making payments and have more than $10,000 in credit card debt, this may be your best option.
In this form of debt relief, a credit counselor advises you on how to manage your money and debt. This is a good option if you don’t have a lot of debt but are looking for professional tips on how to your finances back on track and improve your credit.
Most credit counseling organizations are nonprofit and usually offer services for free. Counselors are often certified in money management, consumer credit, and budgeting and can help you access your credit report, create a budget, and offer money management tips to help you stay out of debt.
Bankruptcy is one way to get rid of or reorganize debt, though it’s a last resort. It’s a legal protection that prevents creditors from collecting on debts and a final tool to erase your debt. Once you file, creditors must wait until the court or bankruptcy trustee takes control.
A trustee helps negotiate an affordable payment plan and collects and distributes the payments on your behalf. Your debt isn’t discharged until you meet the terms and finish paying it off.
One way you can eliminate your unsecured debt is to file for Chapter 7 bankruptcy. This type of bankruptcy is sometimes called liquidation bankruptcy because you turn over certain types of assets to the trustee, who will sell them to pay your creditors.
Unsecured debt includes any money you owe that doesn’t have an asset attached to it as collateral, like:
- Credit card debt
- Unpaid utility bills
- Medical bills
You can also file for Chapter 13 bankruptcy, which involves reorganizing your debt to save your home or car from foreclosure or repossession. You must earn regular, sufficient income to qualify. To learn which option is best, consult with a law firm for legal advice.
Debt forgiveness is when a creditor eliminates part or all of your debt so you’re no longer responsible for repaying it. While it sounds promising, be wary of organizations claiming that you'll get your entire credit card debt forgiven. Credit card companies rarely forgive all your debt, though they sometimes accept a smaller lump sum to settle it.
However, the government offers debt forgiveness programs for some debts, such as student loans. Certain healthcare workers in Nevada can access the Pennington Rural Health Services Loan Repayment Program from the state. Nevada will eliminate student loans when you commit to working two or three years in a rural healthcare setting. Teachers may be eligible for loan forgiveness from the federal Department of Education.
Debt and Financial Hardship Resources
Many things can lead to debt, including emergencies, payday loans, medical bills, and job loss. Nevada unemployment debt relief is available and can help you with your basic needs. Whether you live in a city like Las Vegas or a rural area, you can access cash payments, food programs, affordable or low-cost medical care, child care, and other programs.
Temporary Assistance Programs
You can find emergency debt relief in Nevada from the Temporary Assistance for Needy Families (TANF) program. The State provides cash payments to help working families or relative caregivers with food, shelter, child care, and basic needs.
The Temporary (TEMP) Program is also available during emergencies such as fires or earthquakes. With this program, you can apply and receive cash payments for up to four months to help with your basic needs.
Nevada State also offers the Self-Sufficiency Grant (SSG) to families or individuals who are not receiving TANF funds but need temporary assistance. The goal is to give you a lump-sum cash payment upfront so you can get ahead but also maintain independence without constant state support.
State Health and Human Services
The Nevada State Health and Human Services Department has several programs to help during financial hardship, including food, cash, and medical assistance.
Nevada food assistance programs include:
- Supplement Nutrition Assistance Program (SNAP)
- Women, Infants & Children (WIC)
- Three Square
- Food Bank of Northern Nevada
The State of Nevada also offers several financial programs and medical assistance programs, like:
- Energy Assistance to help heat your home
- Child Support Enforcement
- Senior Rx and Disability Rx for medication coverage
- Nevada Health Centers or Community Health Alliance for affordable health care
- Nevada Check-Up for low-cost health care for children
A child care subsidy in Nevada is also available while you’re on social assistance or transitioning off of it. The goal is to help you provide safe and healthy learning and child care environments for your children while you work.
Shelters for the Homeless
Nevada provides emergency shelters, housing support, and rent assistance programs so that adults, teens, and families can access shelters for homelessness, daytime lodging, family crisis shelters, and assisted living. You can also access low-income housing, rent subsidies, emergency rent or mortgage payments, and other support.
Free Transportation Services
Nevada offers free transportation for seniors and people with disabilities and non-emergency medical transit to a hospital or clinic. Government funding may even cover your gas money for trips to medical or social services.
Find Nevada Debt Relief With TurboDebt
Debt can feel like a vicious cycle, but working with experts can help you gain control. However, do your due diligence to avoid scams or risky agreements that might worsen your debt. Read Nevada debt relief reviews and check with the FTC or Better Business Bureau to make sure there are no legal proceedings, bans, or major complaints against any debt relief companies or organizations you're considering.
For real debt solutions and reputable help, talk to TurboDebt. Take our free debt relief consultation and get connected with an expert consultant. Take control of your debt today.