Debt Relief in North Carolina

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

America's been struggling with record debt, so it’s no surprise that residents of North Carolina are also having a hard time.

With 13% of residents living in poverty, many low-income households could potentially face heavy financial burdens that make paying off debt seem impossible. 

Read on to learn more about debt relief options in North Carolina and find data to show the debt burdens Tar Heel State residents face. 

Debt and Finance Statistics in North Carolina

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 an average of $6,940 in credit card debt, just below the national average of around $7,000.   

Student Loan Debt

Student loan payments account for a large portion of consumer debt in North Carolina and across the U.S. With an average federal student loan debt of $38,770, grad across the state owe a collective debt of $52.2 billion. 

Bankruptcy

Many individual consumers file for either Chapter 7 or Chapter 13 bankruptcy each year to try to overcome financial hardship. In 2024, a total of 8,603 North Carolina residents filed for bankruptcy.

Average Income and Employment

North Carolina's average individual (per capita) income is $39,616, according to recent U.S. Census data, with an average household income of $69,904.

As of December 2024, North Carolina's unemployment rate sat at 3.7%.  

Credit Scores

If you’re interested in a more sound financial future, one of the best ways to start is by improving your credit score and your credit report. North Carolina's average credit score is 699. 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.   

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 2023, we served 8,599 North Carolina clients, enrolling 2,246 into our debt relief programs. The average amount of debt these clients carried was $21,361, and we saved them an average of 52.44% on their debts before fees.

Top Types of Debt to Get Relief from in North Carolina

Divorce Debt

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.

Business Debt

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.

Medical Debt

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.

Homeowner Debt

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. This is secured debt, and doesn't qualify for debt relief.

However, additional unsecured homeowner debt accrued from renovations or repairs does qualify for debt relief assistance through programs like those offered at TurboDebt.

Retirement Debt

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.

Debt Settlement

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

Credit counseling is the process of talking to a professional 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.  

Bankruptcy

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. However, doing so can damage your credit for 10 years or more.

Debt and Financial Hardship Resources

While there are no stimulus checks for North Carolina residents, you have many other options:

Temporary Assistance Programs

If you’re in need of assistance, North Carolina offers nonprofit organizations and financial 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

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.

If you’re interested in working with an accredited organization offering debt relief solutions, then TurboDebt is the right choice for you. With over 18,000 positive reviews, TurboDebt is a trusted partner in debt relief assistance. 

Contact us to start your free consultation today.