New Hampshire Debt Relief
20 MIN READ
Published April 03, 2023 | Updated May 04, 2023
In a Nutshell
Debt relief is crucial for many residents of New Hampshire who are struggling to manage their debts and improve their financial situation. Thankfully, we’ve put together an in-depth guide below to help ease the stress of choosing the right option for relief depending on each individual financial situation. With that said, fortunately, there are a variety of debt relief options available in New Hampshire, including debt consolidation, debt settlement, and bankruptcy. Learn more about the pros and cons of each approach, and let us help you make a thoughtful and informed decision on getting debt relief in NH.
New Hampshire: Economic Picture
New Hampshire is best known for its lead role in the American Revolution, beautiful scenery, and granite production. The state also has a good tax system that attracts retirees and investors, but things aren’t that rosy for its residents who require debt relief solutions.
The economy of New Hampshire grew by 2.5% from last year to a GDP of $84.0 billion in 2022. The gross state product growth was at 0.37%, outperforming the national’s 0.19%.
The largest industry was Property, Casualties, and Direct Insurance which raked in revenue of $8.6 billion, while the leading sector by GDP was Real Estate and Rental and Leasing, which grew at an annualized rate of 2.4%.
The state’s per capita disposable income was $61,900 against the national $56.6k.
How does New Hampshire debt relief work?
New Hampshire debt relief works by negotiating for reduced interest rates, lower monthly payments, waiver on penalty fees, extended repayment periods, and partial or total debt cancellation in an attempt to achieve a debt-free life among the residents of New Hampshire.
Debt and finance statistics specific to the state
Based on our research on debt and financial statistics in the state, we wanted to set the stage with the key takeaways below;
- The average consumer debt in the state of New Hampshire increased by 2.8% to $101,790
- Residents of New Hampshire have an average credit card debt of $5,678
- Residents are expected to pay a median monthly mortgage fee of $2,026 and a median gross rent of $1,212.
- The average student debt loan is $34,085, which is below the national average of $37,574.
- The median household income in New Hampshire is $83,449, and the per capita income is $43,877
- The unemployment rate in the state fell to 2.5% from a record high of 16.2% at the height of the pandemic
- New Hampshire’s average credit score remained unchanged at 734 in 2022
Average consumer debt
In 2022 the average consumer debt in the state of New Hampshire increased by 2.8% to $101,790 from the previous year’s $99,024. The rise in consumer debt is due to the overall increase in mortgage debt and credit debt by $254 billion and $61 billion, respectively, in Q4 of 2022.
Credit card debt
Residents of New Hampshire have an average credit card debt of $5,678, up from $5,251 in 2021 and surpassing the national average of $5,589. The increase in credit card debt is largely due to the increase in interest rates, which have led to the largest jump in credit card debt by $61 billion in Q4 of 2022.
Auto loan debt
It is easy to own a car in New Hampshire as the state doesn’t impose a sales tax on car purchases. As such, the state has a low average monthly auto loan debt of $500 compared to other states.
Even though the amount of auto loan debt is low, New Hampshire is big on auto loan debts as it has one of the highest car ownership rates of 95.2% compared to the national average of 91.7%. Also, the state’s monthly average auto loan debt has increased, as seen by the overall increase of car loans by $28 billion as access to car manufacturing parts remained low and consumer demand grew.
However, residents of New Hampshire have fallen behind on their car loan repayments as they have a 30-day past-due rate of 5.4% and a 60-day past-due rate of 2.5%.
The homeownership rate in New Hampshire is 71.6%, and the median home value is $288,700. Residents are expected to pay a median monthly mortgage fee of $2,026 and a median gross rent of $1,212.
The median home value varies across the state, with metropolitan areas like Concord, Manchester, and Nashua costing homeowners $245,800, $258,100, and $298,100, respectively.
The housing market in New Hampshire experienced a 9% drop in closed sales as consumers shied away from owning a home due to the increased interest rates, high cost of living, and high cost of building materials. Therefore, first-time home buyers find it difficult to afford a home, increasing the median days on the market for a new listing to 75 in January 2023.
The rule of thumb for a balanced rental market is a 5% vacancy ,rate but the state’s vacancy rate is 0.3% against the national 0.5% for a two-bedroom house. Such a low vacancy rate is due to the drop in building permits by 11% for single-family permits and 23% for multifamily permits.
Student loan debt
The average student loan debt amount is $34,085, which is below the national average of $37,574.
13.8% of New Hampshire residents owe a total student debt loan of $6.5 billion. Of this, 59.3% are below the age of 35.
Household debt is largely influenced by mortgage payments and credit card debt. And with the recent increase in these two factors, there has been an upsurge in household debt as consumers are spending more than they earn.
Household debt is characterized by the debt-to-income ratio as it seeks to find out how much more consumers spend in relation to their incomes. The DTI ratio in New Hampshire is 1.581, meaning that consumers’ spending has surpassed their income levels by more than half of their income.
Therefore, the median household debt is $83,499 multiplied by 1.581 to get $132,011.
The number of bankruptcy filings has been in a steep decline since the Great Recession. In 2022, the total number of bankruptcy filings dropped to 675 from 753 in the previous year.
Chapter 7 bankruptcy cases were the highest at 450, followed by chapter 13 at 219 cases, and lastly, chapter 11 at 6 cases.
Average income and employment
The median household income in New Hampshire is $83,449, and the per capita income is $43,877. Low-income levels have seen about 7.2% of the state’s residents living in poverty and requiring assistance programs.
The unemployment rate in the state fell to 2.5% from a record high of 16.2% at the height of the pandemic. The sectors that benefitted the most by employing payroll employees are leisure and hospitality and trade, transportation, and utilities.
New Hampshire’s average credit score remained unchanged at 734 in 2022. This is because residents reduced their credit card utilization rates to avoid racking up credit card debt due to increased inflation and consumer demand.
New Hampshire ranks 30th in identity theft with 1,302 identity theft reports. The leading form of identity theft is credit card fraud at 46%.
The state has experienced a total fraud loss of $5.1 million from its 8,447 total fraud reports, which include identity theft. The median fraud loss is $260.
Banking and tax info
The total number of banking institutions in the state is 18, and their total assets have grown to $15,915 million in Q3 of 2022. The largest financial market is in Boston- Cambridge- Newton, with 111 financial institutions and total deposits of $511,256 million.
The state of New Hampshire is the only state that doesn’t have a salary income tax but levies a 4% tax income on interests and dividends, ranking the state 6th in the business tax climate index. The state and local tax burden is 9.7%, while the top corporate income tax rate is 7.5%.
Although there’s no state and local sales tax rate, there’s an excise duty tax of 23.83 cents per gallon of gasoline and a $1.78 state cigarette tax on every 20 packs of cigarettes. The property tax is 1.93% of the owner-occupied value.
The state also offers tax exemptions for eligible residents.
How TurboDebt Helped NH Residents With Debt Relief in 2022
TurboDebt is a debt relief company that offers New Hampshire residents a path toward financial freedom through its customized debt relief programs. In 2022, we managed to help 411 clients in debt management, and 159 of them enrolled in our debt relief program. The total enrolled debt was an outstanding $3,450,106, and the average client enrolled debt was $21,699.
Top Types of Debt to get Relief from in New Hampshire
There are several types of debt that residents of New Hampshire commonly seek relief from. Read on below, or take advantage of our free consultation services to learn more about these top types of debt and how you can qualify for a debt relief option if you are struggling with any of them.
Credit Card Debt
Residents of New Hampshire have been finding it hard to clear credit card debt due to increased interest rates, which have led to high APRs of around 18%. This has resulted in past-due penalty fees as residents struggle to keep up with their monthly payments on each payday. In total, the late penalty fees and high-interest fees have left many residents seeking a debt relief solution.
At TurboDebt, we’re passionate about helping you tackle your credit card debt and work towards a debt-free life. This is the most common type of debt that we enroll in our program, so we’re extremely familiar with the best strategies that can help you.
Divorce laws in New Hampshire require that debts are divided equitably between spouses. This implies that debt is divided depending on the judgment of the divorce court, which will consider the following factors when dividing marital debt;
- Duration of the marriage
- The needs of the custodial parent to rent, furnish and provide for a home
- Your age, economic status, employment, individual property, and sources of income, among others
Debts that you took together with your spouse may be divided equally. You should consult for legal advice from your law firm to understand the factors involved in dividing marital debt.
You could end up with divorce debt if the court decides to divide your partner’s personal loans or if you had taken out debts together.
Luckily, you can regain control of your divorce debt by enrolling in our debt settlement plan. This debt relief option offers borrowers an average savings of about 46% of total debt before fees.
New Hampshire is a business-friendly state with no state and local sales tax rate, hence, attracting new businesses to incorporate in the state. However, the process of incorporating in the state is time-consuming, involves a lot of paperwork, and the lifetime of your business is limited.
Such conditions may lead to the accumulation of business debt for out-of-state residents who have to deal with transportation costs, especially small and medium-sized entrepreneurs. Also, the delivery of goods and services may be difficult if your target group is across the country in Oregon.
At TurboDebt, we’re committed to helping you with your business debt through our counseling services to see which debt relief option will help you best.
About 6.2% of the residents of New Hampshire lack medical insurance, which is below the national uninsurance rate of 9.8%.
Also, 8.9% of the state’s residents are disabled. These individuals access medical care while accruing medical bills since most of them live below the federal poverty level and lack unemployment. This leads to the accumulation of the state’s median medical debt of $500, which is past due to debt collection agencies.
With our assistance or help from local certified nonprofit credit counselors, you can live a debt-free life by enrolling in a customized program. Often times the best choices will help you pay down your medical debt through an extended repayment period, where monthly payments are lowered to fit your daily requirements, thus avoiding further debt accumulation.
The housing market in the state was greatly impacted by the pandemic leading to a drop in issuing building permits which affected the supply and demand dynamics. The state sought to sort out the low supply and high demand of houses which increased home values during the post-pandemic era. Still, this was far from the truth as home values skyrocketed thanks to the high cost of building materials and inflation rates.
Such a financial situation has left many mortgage borrowers with homeowner debt as they catch up with their monthly mortgage payments. Luckily, options like debt consolidation loans or similar options can be your ticket to getting out of homeowner debt and avoiding a looming foreclosure. Get in touch with our TurboDebt experts to see what makes the most sense for your unique situation.
New Hampshire has witnessed an increased inbound migration trend by retirees as the state doesn’t impose a tax rate on retirement income and benefits. This makes the state look attractive for retirement life, but residents tell a different story.
Uninsured pension liabilities in the state of New Hampshire have been dropping from $4.9 billion in 2019 to $818 million in 2022, signifying a recovery of the New Hampshire Retirement System. Despite the positive gains in the retirement system, only 43% of residents aged 60+ have access to an average retirement income of $24,784.
Such an income won’t last a retiree through the year if personal care and medical services cost around $4,855 per month, making them prone to retirement debt.
New Hampshire debt relief options
It is important to note that each individual's financial situation is unique, and the best debt relief option will vary depending on the specific circumstances. Before pursuing any debt relief option, it is important to carefully consider the pros and cons and to seek the advice of a financial professional.
We recommend the following most successful options for debt relief if you’re a resident of New Hampshire and have fallen behind or are struggling with loan repayment;
Debt management programs
Debt management programs are offered by nonprofit credit counselors, who negotiate for reduced interest rates on your unsecured debts. DMPs work best on high-interest credit card debts by lowering interest rates and creating a single monthly payment for residents with multiple credit cards.
You must close your existing credit cards to avoid accruing new debt, make consistent monthly payments to a savings account, and commit to a repayment plan lasting between 3 to 5 years for debt management programs to work.
Debt consolidation loans
In debt consolidation, you must take a large loan to pay off your existing debts in a single lump sum payment, leaving you with one debt to clear. Consolidating your debts into one and clearing them in advance saves you multiple interest fees, lowers monthly payments, and reduces interest rates making it an ideal debt relief option.
Residents pursuing debt consolidation loans should have a good credit score to take advantage of the lower interest rates. Also, you must choose a repayment plan that won’t result in high-interest fees as a result of an extended repayment period.
Debt settlements involve a partial debt cancellation on your existing debt balances. This debt relief option is great for residents facing tight financial situations and who have fallen behind their monthly payments.
For debt settlement to work, you must make a lump sum payment to your lenders as a way of enticing them to settle your debt. Third-party companies may advise you to stop making monthly payments to your creditors as you save in a savings account. Most lenders agree to a lump sum payment of more than half of your existing balance in debt settlement.
Once they receive the lump sum payment, the remaining debt balance is forgiven, and they get to experience a fresh start away from debts.
The goal of credit counseling is for borrowers to get guidance on credit reports, money and debt management, and budgeting. Once they understand these concepts, they’ll make wise consumer choices and choose a debt management plan that will free them from debt.
Credit counseling agencies will also help you negotiate a waiver on penalty fees, lower interest rates, and lower monthly payments so as to make the debt relief process easy and save costs.
Debtors get a free credit report in credit counseling.
Debtors dread filing for bankruptcies as they impact their credit report for 7 to 10 years, thus limiting their eligibility for loans. However, the advantage of filing for bankruptcy is that they either wipe off your debts or structure the repayment plan.
Chapter 7 bankruptcies settle the unsecured debt by liquidating your nonexempt properties and paying off the debt balances. Meanwhile, chapter 11 bankruptcy is available for businesses knee-deep in debt. It works by restructuring the repayment plan without affecting your business operations.
Chapter 13 bankruptcies are for businesses and individuals who can manage debt payments since they have a consistent monthly income. Their assets and nonexempt properties aren’t liquidated so long as they stick to the repayment plan.
The statute of limitation in New Hampshire is 20 years for judgments and written contracts, three years for oral contracts, and three years for most civil cases. The state also offers an exemption benefit on eligible properties and income levels.
Debt forgiveness involves debt cancellation once you’re eligible for a debt forgiveness program. These programs are offered by the federal gov and state gov as an option for debt relief. The available debt forgiveness programs include the following;
- Federal loan student loan forgiveness
- Teacher loan forgiveness
- Public service loan forgiveness
Debt and Financial Hardship Resources
Residents of New Hampshire going through a tough financial situation that could lead to homelessness, lack of medical coverage, lack of transportation cost, and lack of food can benefit from the following debt and financial hardship resources available in the state;
Temporary assistance programs
The TANF is a cash assistance program that is available to low-income families for a maximum of 60 months. The program is created to help families establish a conducive environment for kids needing parental support.
The Emergency Assistance fund helps eligible households avoid homelessness due to rent arrears or lack of utility bills. The payments of the funds are made once a year.
State health and human services
MEAD and MOAD are medical assistance programs that benefit working residents with disabilities and have income levels to sustain Medicaid.
Disease Prevention is medical assistance program aimed to control and prevent the spread of diseases. They can be chronic or infectious diseases.
Medicaid is a medical assistance program funded by the federal and state government to provide health care to families and residents meeting the required eligibility standards.
Child Protection and Juvenile Justice is a state-run program that seeks to avoid child abuse and offer supervision and rehabilitation services to needy children.
WIC Nutrition Program is a nutrition food campaign targeted to benefit new mothers, infants, pregnant women, and young children with healthy foods and education on healthy living.
Services for Children with Special Health Care offers medical and social assistance to children under the age of 21 years who are facing chronic medical conditions, are disabled, or need special health care.
Maternal and Child Health is a program that provides premium preventive and primary health services to children and raises awareness of the reproductive health of women and their spouses.
Child Care and Developmental Fund improve the accessibility of quality health care and out-of-school programs that are affordable to children of low-income working families.
Shelters for the homeless
Recovery Support Services offers housing solutions to residents suffering from mental illnesses or who have experienced substance abuse. They offer a place and community to support them in making a recovery, thus avoiding homelessness.
Housing Services works to direct residents and families facing homelessness or at risk of homelessness to access housing solutions and shelters.
Free transportation services
NHCarePath is New Hampshire’s transportation program that may cover the transportation costs of eligible residents accessing medical care. It also offers carpooling options and covers other mobility requirements within the state.
Whether you may be struggling with credit cards, payday loans, medical debt, or otherwise, know that there are several great debt relief options for New Hampshire residents. Before you make any final decisions, it’s always advisable to seek reputable help from a company like ours, which can help you narrow down the best option for your own situation.
Take advantage of our free debt relief consultation now to learn more about debt relief and how much we can save you!