Debt Relief in North Carolina
4 MIN READ
Published March 30, 2023 | Updated August 22, 2025
Written by Christie Hudon
Edited by Wes Silver
Turbo Takeaways
From the windswept beaches of the Outer Banks to the majestic Smoky Mountains, North Carolina draws residents to its outdoor wonders and vibrant cities. Although a haven for natural surroundings, many in the Tar Heel State are also surrounded by overwhelming balances on credit cards, personal loans, and other expenses.
Fortunately, North Carolinians have options to get out of debt. While the best solution depends on your total balance and financial goals, debt relief organizations like TurboDebt® provide expert help to manage and pay off thousands of dollars in unsecured debts.
Keep reading to learn more about your choices and determine the right fit for your financial needs.
Your Options To Get Out of Debt in North Carolina
Credit Counseling
An effective way to get started when you feel overwhelmed, credit counselors act like personal advisors, reviewing your financial situation and offering suggestions on how to begin clearing debts.
| How It Works in North Carolina |
| Credit counseling organizations pair consumers with a certified credit counselor who offers advice and provides resources to help you make wise choices with your money. |
| Pros |
| Credit counseling offers a low-cost way to speak with experts about debt relief solutions while providing financial education that can reshape how you handle debt. |
| Cons |
| If you’re not motivated to act on the advice of your credit counselor and make a plan to manage monthly payments, you won’t clear any debt. |
| Cost |
| Credit counseling organizations may offer low or no-cost services to those who qualify, but fees are typically manageable for most consumers. |
| Stats |
| The National Foundation for Credit Counseling reports that while many consumers struggle financially, only 32% have money in savings to help with issues like debt repayment or emergency expenses. |
| Resources |
| Learn more about credit counseling and what it involves from TurboDebt’s® resource library. |
Debt Management
Debt management programs coordinate debt repayments for consumers. As long as you pay the debt management organization each month, you won’t have to worry about missed or late payments to your creditors.
| How It Works in North Carolina |
| Tar Heel State residents can set up a savings account with a credit counseling organization or private debt management firm. After determining how much you owe each month, you’ll start making payments to the program that will pay each creditor. |
| Pros |
| Debt repayment gets simplified when an organization handles monthly bill payments. |
| Cons |
| You’ll pay fees for each account the organization handles and will likely need to close most, if not all, credit cards while on the program. |
| Cost |
| Costs range from $20-$30 a month for each managed account, plus a startup fee of around $40. |
| Stats |
| North Carolinians owe an average consumer debt of $96,972, making debt relief a priority for many residents. |
| Resources |
| Find out more to decide if a debt management plan is the right option based on your financial needs. |
Debt Consolidation
Combining debts into a single payment helps Tar Heel residents manage huge balances.
| How It Works in North Carolina |
| North Carolinians typically consolidate debt in two main ways. One is to take out a loan big enough to cover all current debts and start making a single payment each month instead of owing multiple creditors. The other choice is to open a zero-interest balance transfer credit card to clear high balances without added interest fees. |
| Pros |
| Securing a debt consolidation loan allows you to make one monthly payment after closing out all other outstanding balances. Balance transfer cards make it easier to catch up on payments if you’re behind on credit card bills and owe interest fees. |
| Cons |
| Taking out a consolidation loan at a low interest rate requires a strong credit score and a hard credit check. You may not qualify for a loan at a low enough rate to make it worth the effort of consolidation. Opening a new credit card also comes with a risk. If you fail to repay your transferred balance before the zero-interest period ends, you’ll likely pay sky-high interest rates on any remaining debts. |
| Cost |
| The cost of a debt consolidation loan depends on your total debt balance plus the interest rate you secure. You may also pay an origination fee to the financial institution issuing the loan. Balance transfer cards often charge a fee to make the transfer. Check the card’s policies to account for additional fees and interest rates. |
| Stats |
| North Carolina residents carry an average credit score of 709, making it easier for many consumers to qualify for loans and new lines of credit. |
| Resources |
| Discover how debt consolidation programs work and the benefits and challenges they present to consumers. |
Debt Settlement
Settling debt can save you time and money when you partner with an organization like TurboDebt®.
| How It Works in North Carolina |
| Tar Heel residents struggling with thousands of dollars in unsecured debts, such as credit card balances, can leverage expert help to negotiate a settlement with creditors. To begin the process, you’ll start paying into a savings account to prepare a lump sum for debt repayment. Once a creditor agrees to a settlement, the organization sends the funds to pay off your debt and collects an administration fee for handling the negotiations and savings. |
| Pros |
| Debt settlement potentially saves half of what you originally owed, reducing your debt and making it easier to pay off large balances faster. |
| Cons |
| During the settlement process, your credit score usually drops since you stop making payments toward your debt until you collect enough to pay it off. |
| Cost |
| While reputable debt settlement companies won’t charge any fees until you settle your debt, you’ll owe 15-25% of your total enrolled debt once you complete a settlement. |
| Stats |
| With North Carolinians owing an average credit card debt of $7,487, debt settlement is an effective solution for high balances like these. |
| Resources |
| Continue reading about debt settlement and how it aids consumers from TurboDebt’s resource library. |
Bankruptcy
As a final option for debt relief, consumers use bankruptcy to clear debts and reset their finances. Experts recommended working with a bankruptcy attorney to complete the process.
| How It Works in North Carolina |
| Tar Heel State residents who’ve exhausted all other options to overcome debt can petition the court for assistance. Consumers typically file either Chapter 7 or Chapter 13 bankruptcy to relieve debts by selling off assets or following a court-mandated repayment plan lasting up to five years. |
| Pros |
| Bankruptcy gives you legal assistance in repaying and relieving debts. |
| Cons |
| While effective for clearing certain debts, bankruptcy also impacts your credit score and your ability to borrow money for up to ten years after the proceedings. |
| Cost |
| You may owe small fees for filing documents with the courts, but the real cost of bankruptcy comes from hiring an attorney. Bankruptcy attorney fees could soar to $10,000 or more. |
| Stats |
| A total of 9,230 North Carolina residents filed for bankruptcy as of August 2025. |
| Resources |
| Learn how bankruptcy impacts your financial life to determine if it’s the right choice to relieve your debts. |
What You Need To Know About Debt in the State of North Carolina
Statute of Limitations on Debt Collections in North Carolina
North Carolina’s statute of limitations on debt collection governs how long a creditor can pursue legal action against a consumer for debt repayment. Consumers are still obligated to pay debts, but these statutes protect debtors from extended court proceedings.
In North Carolina, most statutes fall within three years. However, promissory notes, which include mortgages, extend to five years, making it essential for consumers to pay off debts within a reasonable amount of time.
| Type of Debt Agreement | Length of Time Collectible |
|---|---|
| Written Contracts | 3 years |
| Promissory Notes | 5 years |
| Open-Ended Accounts | 3 years |
| Oral Agreements | 3 years |
| Medical Debt | 3 years |
Student Loan Forgiveness in North Carolina
The Tar Heel State forgives loans for certain residents who meet eligibility requirements. For example, the Teacher Loan Forgiveness Program relieves teacher loan debt for those who serve in high-need areas.
The North Carolina Primary Care Physicians Initiative repays loans to primary care physicians for providing services in areas that match certain state distress rankings.
Resources for Financial Assistance in North Carolina
North Carolina offers financial assistance programs to residents facing hardships. Below are some of the top ways residents can seek help:
- Work First: North Carolina’s Work First program is the state’s extension of Temporary Assistance for Needy Families (TANF), offering cash assistance to residents in need.
- Food and Nutrition Services: Commonly known as Food Stamps, North Carolina administers this aid program to help families and individuals purchase nutritious food.
- Women, Infants, and Children (WIC): The WIC program aids pregnant women and mothers with young children, providing supplemental nutrition, support, and resources.
- NC Child Care Subsidy: This program helps families afford child care services throughout the state.
- NC 211: The NC 211 offers help with housing, community services, and other community resources.
While North Carolina stimulus checks helped many families and individuals during COVID, no new funds are planned for 2025.
Get Professional Help Paying Off Your Debt
Overcoming debt can seem daunting, but partnering with an organization like TurboDebt® can help you create a plan and stay on track, making your financial goals achievable.
As a trusted source for debt relief and a BBB-accredited company with an A+ rating, we’ve helped thousands of consumers like you overcome overwhelming debts. Check out over 20,000 5-star TurboDebt reviews from satisfied clients!
With our debt relief plan, you can typically pay off your debt in 12-48 months for less than what you originally owed. It only takes a few minutes to get started with a free consultation. Contact us today to speak with an expert team member and start paying off debt for good!
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