Debt Relief in North Carolina
12 MIN READ
Published March 30, 2023 | Updated November 10, 2023
In a Nutshell
Whether you live in Charlotte, Greensboro, Raleigh, or other areas, you might be one of the many Virginians struggling with debt. If you’re wondering how to escape your credit card debt or other unsecured debts, you can find various ways to do so. Factors like average credit card debt and income level can influence your ability to pay back what you owe.
Because many North Carolina residents have debt from several different places, it can seem complicated to get out of it. To help you understand and achieve debt relief in the state of North Carolina, we'll share relevant statistics and resources throughout this article.
North Carolinians Need Debt Relief
It seems like every American is struggling with debt in some capacity, so it’s no surprise that residents of North Carolina are also having a hard time. Residents of the Tar Heel State have seen a 3.2% increase in consumer debt from 2021 to 2022.
With 13.4% of residents living in poverty, the low-income financial burdens of North Carolinians far exceed the national average.
Read on to learn more about the debt relief process so you can prepare to start working toward a debt-free life.
Debt and Finance Statistics in North Carolina
Average Consumer Debt
Average consumer debt factors in the amount of debt for auto loans, payday loans, student loans, mortgages, and credit cards. In North Carolina, the average amount of consumer debt is $87,160.
Credit Card Debt
It's easy to rack up credit card debt, especially when you use credit cards to pay other essential bills. North Carolina residents carry $5,832 in credit card debt, just below the national average of around $6,000.
Auto Loan Debt
For the first time in history, the average auto loan topped $20,000 in 2021, making it harder for Americans to pay for their automobiles. In fact, the median auto loan debt in North Carolina was $21,170 in 2022.
Homeowners take on mortgage debt by financing a home instead of paying for it in full. In North Carolina, residents carry an average mortgage debt of $162,520.
Student Loan Debt
Student loan payments account for a large portion of consumer debt in North Carolina and across the U.S. With a total enrollment of over 1 million graduates, their average federal student loan debt is $38,001.
Many people file for either Chapter 7 or Chapter 13 bankruptcy each year to try to overcome financial hardship. In 2022, 6,188 North Carolina residents filed for bankruptcy.
Average Income and Employment
North Carolina's average individual (per capita) income was $34,209 in 2021, according to the U.S. Census, with an average household income of $60,516.
If you’re interested in a more sound financial future, one of the best ways to start is by improving your FICO credit score and your credit report. In North Carolina, the average credit score is 707. This is an effective score, as you need over 670 points to be considered in the ‘good credit’ range. “Good” credit scores make it easier to qualify for loans at a lower interest rate.
Unfortunately, an increasing number of digital scammers commit fraud every year. In North Carolina, 31,609 cases of identity theft were reported in 2022, making them 16th in the nation for this crime.
Banking and Tax Info
North Carolina's current sales tax rate is 4.75%. The state also collects a flat individual income tax of 4.75%.
TurboDebt Can Help You Find Debt Relief in North Carolina
Although it might seem like debt is something that you can’t escape, TurboDebt is committed to helping you change your life. In 2022, we served 3,754 North Carolina clients, enrolling 1,126 into our debt relief programs. The average amount of debt these clients carried was $21,410, and we saved them an average of 52.74% on their debts before fees.
Top Types of Debt to Get Relief from in North Carolina
If you’ve just experienced a divorce, you’ve already lost enough. In North Carolina, the equitable distribution law is used to divide assets and debt. This law requires the judge to order property and debt to be split equally unless it's not equitable. Depending on your circumstances, this can be a heavy burden on your finances.
Let TurboDebt help you navigate the strain of paying off debts after a costly divorce.
If you’ve started a business, there’s a good chance you took out a loan to get going. In North Carolina, business debt does not have the same protections as other debts. The last thing you want is for your debt to prevent your business from success.
TurboDebt can help business owners manage the debt that they’ve accrued from starting a company.
In America, many citizens carry debts from insurance bills, unforeseen accidents, and costly procedures. Around 23% of Americans living in the South, including those in North Carolina, have medical debt.
North Carolina has a three-year statute of limitations on medical debt. However, during those three years, the debt can hurt your credit and be sent to collections. If you’re struggling to pay off your medical debt, TurboDebt can help you find a program, such as debt settlement, that meets your financial needs.
Credit Card Debt
Credit card debt can become consuming, especially with high-interest rates that continue to increase your balance. If you have credit card debt in North Carolina, you may be glad to hear that there is a three-year statute of limitations.
TurboDebt can help you settle your credit card debt so that you can start building a positive financial future.
Mortgages aren’t always the worst kind of debt, but if you’re having a hard time paying your mortgage, you might be in financial trouble. In fact, seven in ten Americans have trouble paying their rent or mortgage.
In North Carolina, mortgage debt rose 14.2% from 2017 to 2021, and the Tar Heel State ranks high in the country when it comes to defaulted mortgage debt.
Helping North Carolina homeowners keep their homes is a top priority of TurboDebt. Contact us to find out if our debt relief options can aid you in overcoming debt as a homeowner.
If you’ve retired in North Carolina, then you’ve entered a new, exciting phase of your life. Fortunately, most debts in North Carolina have a three-year statute of limitations, but living on a fixed income can make it difficult to pay off balances from unexpected costs.
If you’re struggling with debt during retirement, let TurboDebt help. Our experts can help you find the right debt relief program to get you back to saving instead of owing.
Debt Relief Options in North Carolina
Here’s what you need to know about each debt relief option in North Carolina:
Debt Management Programs
When monthly payments get too high, you may be unable to pay down your debts. Working with a debt management program to find a repayment plan can reduce your monthly payments toward your debt. These programs can help you pay back what you owe at lower interest rates.
Debt management plans help many Americans escape debt. In North Carolina, debt management programs utilize non-profit credit counselors working with lenders to reduce credit card interest rates. These programs can aid people in North Carolina with high-interest credit card debt.
Debt Consolidation Loans
Debt consolidation allows you to reduce all your debts down to one. That means that if you owe debts to several different lenders, a debt consolidation loan allows you to pay off multiple debts in exchange for a single monthly payment.
In North Carolina, debt consolidation loans typically have a lower interest rate than most high-interest credit cards, making them a good option for those with debt on multiple credit cards or other outstanding accounts.
If you owe a certain amount of money and can’t foresee ever repaying it, then debt settlement services could alleviate your outstanding debts. With debt settlement programs, you negotiate your payment to a certain amount, even up to half of what you originally owed, helping you avoid debt collectors.
For example, if you owe $14,000, you might only pay $7,000, and the rest of your debt will be forgiven after you create a payment plan. It’s important to note that North Carolina has a three-year statute of limitations on credit card debt. Debt settlement can take multiple years and may affect your credit for a time. However, if you can’t keep up with your credit card interest and balances and need a solution, debt settlement can help you become debt-free.
Credit counseling is the process of talking to a professional in order to figure out how to best reduce your debt. Everyone’s situation is different, and a credit counselor will be able to explain to you what you need to do to get out of debt in the fastest way possible. There are private and nonprofit credit counseling agencies serving North Carolina residents.
By declaring bankruptcy, you request a court order to figure out how to repay your debts. Whether you liquidate your assets or have some of your debts taken away, the court will help you figure out how to start fresh. Individuals typically file for Chapter 7 and Chapter 13 bankruptcy. However, doing so can damage your credit for 10 years or more.
Debt and Financial Hardship Resources
Temporary Assistance Programs
If you’re in need of assistance, North Carolina offers nonprofit organizations and emergency assistance programs, like the Emergency Assistance Program Short-Term Financial Assistance for Families in Crisis) program. Many of these programs have proved vital during the pandemic.
State Health and Human Services
If you have health problems and don’t have healthcare, North Carolina offers help for your situation. For example, you might find that the North Carolina ePASS or the State Health Insurance Assistance Program is helpful.
Child care is important for parents of young children needing to work. There are ways to get reduced child care in North Carolina through programs like the Child Care Subsidy program.
Shelters For the Homeless
If you’re in a precarious situation, you might need to find a homeless shelter. There are plenty of homeless shelters in North Carolina, including Leslie’s House, South Wilmington Street Center, Roof Above 1210 N., and Tryon Street Men’s Shelter.
Free Transportation Services
It’s important to find reliable transportation to work or medical appointments. If you don’t have a car or if you can’t afford public transportation, that might become a problem. If you’re in need, North Carolina offers transportation services like Medicaid Transportation Services.
Achieve Financial Freedom with TurboDebt
North Carolina residents can live a life without debt. Find a reputable debt company and avoid scams by carefully researching what the organization offers. There are many scams out there that claim that they will help you reduce your debt, but you’ve got to be diligent to avoid getting your information stolen. Instead, look for an established company with favorable reviews and clear resources.