North Dakota Debt Relief

In a Nutshell

Credit counseling, debt consolidation, debt management, debt negotiation, and bankruptcy are all viable choices for North Dakota residents seeking debt relief.

Compared to the rest of the nation, North Dakotans have relatively average salaries, one of the lowest unemployment rates, and relatively low levels of credit card debt and overall debt. They nevertheless may have to look for comfort despite this fact. No matter how well-off you are now, debt may wreak havoc on your financial well-being.

With TurboDebt's free consultation, you can get advice on the best debt solution for your specific circumstances and make progress in paying off your debts. Contact us or read on to find out more about the most common forms of debt Iowans carry, the most effective methods of debt relief, and crucial resources for those experiencing financial difficulties.

North Dakota’s Financial State

North Dakota, bordering the Canadian Provinces of Winnipeg and Saskatchewan on the north and the states of Montana, Wyoming, South Dakota, and Minnesota on the south, is devoted largely to agriculture. Over 90% of North Dakota's land is used for farming.

North Dakota is the leading producer of dry navy and pinto beans in the United States, employing one-fifth of the state's workforce in agriculture. More than 90% of the United States supply of canola and flaxseed comes from just this state.

The state boasts a population of roughly 777,000 people.

North Dakota bears a significant Native American population, representing more than seven percent of the state population. However, two states bordering North Dakota, South Dakota ,and Montana, have more Native American individuals. There are six reservations at least partially in the state, including Mandan, Hidatsa, & Arikara Nation (Three Affiliated Tribes), the Spirit Lake Nation, the Standing Rock Sioux Tribe, the Turtle Mountain Band of Chippewa Indians, the Sisseton-Wahpeton Oyate Nation, and the Trenton Indian Service Area.

In 2021, poverty affected over 11.1% of North Dakota's population. The poverty rate in North Dakota rose from 10.5% to 11.1% in one year. However, the World Population Review ranks North Dakota among the lowest poverty rates in the nation, ranking higher than only ten other states.

How does debt relief work in North Dakota?

Some of the most effective debt relief organizations are services that can help you communicate with the individuals you owe money to. Their goal is to negotiate a lower settlement amount with your high-interest debt collectors.

These firms typically state they can help you lower your debt dramatically. Although this may seem appealing, it is important to research how various debt relief organizations interact with creditors before making any decisions.

Individuals may use various methods to decrease their debt, including debt settlement, counseling, consolidation, and bankruptcy. Your debt’s total amount and nature will determine what works best for you. You should verify you’re engaging with a reliable debt relief firm by checking their reviews and ratings on sites like Trustpilot and the Better Business Bureau. This will increase the possibility that your financial condition will improve.

Average consumer debt

Consumer debt involves combining the average amount of debt for auto loans, student loans, mortgages, and credit cards. When you add up each of these averages from the statistics below, North Dakota residents have an average consumer debt of $217,329. This Large sum of debt puts many residents in a tough position, but with the help of TurboDebt, you could be on your way to becoming debt free in as little as 24 months.

Credit card debt

North Dakotans carry some of the lowest average credit card debt in the United States, at roughly $5,265 per person. This places North Dakota as the ninth-lowest in the nation for this kind of debt. Alaska has the highest average credit card debt per person, at $8,026, and Iowa has the lowest, at $4,774. The typical American has $6,194 in credit card debt.

Auto loan debt

The outstanding vehicle loan debt in the United States has hit a new high of $1.2 trillion. Wyoming's average consumer vehicle loan balance was the highest in the country in the second quarter of 2019.

Despite relatively low credit card debt, North Dakotans have some of the country's highest average auto loan debt, ranking 14th. North Dakota residents have an average of $20,686 in auto loan debt but have the second-highest FICO scores in the country, averaging 727.

Mortgage Debt

The median house price in North Dakota is $210,000. The average outstanding mortgage debt in the state is $162,774.

The median house prices in North Dakota rose 9.6% over the previous year in September 2022. In February 2023, the median home price in Bismarck was $77K, 2.8% more than last year.

In the United States, total and mortgage debt are increasing. The amount of mortgage debt rose by 7.6% between September 2020 and September 2021, reaching $10.3 trillion.

Student loan debt

North Dakota is one of the states with the lowest student debt in the country. It is the only state where people with student loans owe less than an average of $30,000. North Dakota is home to 87,400 people with student loans, who owe a total of $2.5 billion in student loan debt. The average amount of student loan debt in North Dakota is $28,604. The highest average student loan debt is owed in the District of Columbia at $54,945. The average student loan debt for all U.S. borrowers is $37,574.

While the U.S. government has halted monthly payments for student loans throughout the pandemic, and has begun to grant student loan forgiveness to certain populations, these kinds of debts can be overwhelming for borrowers.

Many people in the United States owe student loans. In fact, student loan debt has tripled since 2007 to a total of more than $1.76 trillion. It’s no surprise people with high student loan debt might seek debt relief from a service like TurboDebt.

Household debt

According to the New York Fed’s Center for Microeconomic Data, household debt in the United States has grown by nearly $4 billion in the fourth quarter of 2022, bringing the total to $16.9 trillion. In North Dakota, the average household debt increased by 3.8% from 2021 to 2022 to $88,441. North Dakota is squarely in the middle of the pack regarding household debt. However, its debt increase is slightly larger than average.

In 2022, consumers added more than $1 trillion to their total debt. This was a huge jump that hadn't happened in over a decade. The 7% rise was caused by high inflation, sharp rises in consumer demand, and nearly full employment, which kept people who already had a lot of money spending. The Federal Reserve also raised interest rates significantly throughout 2022.

Bankruptcy

More people in the United States must know that personal bankruptcies happen often. Individual bankruptcy in the US has gone through the roof in the last 100 years. Between 1900 and 1950, bankruptcy was a very rare thing. But since the 1960s, the bankruptcy rate in the United States has steadily risen for many reasons. Its growth has sped up a lot in the last 25 years. 2005 was the year when the most people ever filed for bankruptcy. In that year, one out of every 55 American families went bankrupt.

Filing for bankruptcy is one way to help yourself get out of debt, but it can take years for your credit score to improve during this process.

North Dakota has the second-lowest bankruptcy rate per 100,000 residents, at 94. Tennessee has the highest rate, at 610 per 100,000, and Alaska has the lowest, at 54 per 100,000 residents.

Average income and employment

North Dakota’s average and median incomes are quite close to the national average. North Dakota’s average income was $87,614. Meanwhile, the median income was $63,611. The average income for a household in the United States is $87,864; the median income is $61,937.

At 2.1%, both Dakotas had the lowest unemployment rate. Nevada had the highest unemployment rate, at 5.5%.

Credit scores

North Dakotans also rank highly for their average credit scores, coming in fifth with an average credit score of 730. The highest average credit score in the country was in Minnesota, at 739. The lowest was Mississippi, at 675.

Since a credit score looks at your past credit history and current credit standing to predict how you will use credit in the future, this equates to how likely you are to pay back loans on time.

Credit scores are used to decide if someone should get a mortgage, a credit card, or a car loan. It also affects how much you can borrow and the interest charged against you. They are also used to find good tenants and set insurance rates.

A business uses a mathematical method or scoring model to determine a person's credit score.

Identity Theft

North Dakota had among the lowest identity theft reports in 2022. There were 999 total reports in North Dakota in 2022, or 131 per 100,000 residents.

Rhode Island came first, with 30,270 reports of identity theft, or 2,857 for every 100,000 people living there.

More than 395,000 people said someone had used their name to file a fake government form. This was the most common way that someone stole someone else's identity.

Because of this, ransomware attacks become less complicated and more profitable. Between 2019 and 2020, the number of victims in the US rose by 311 percent, estimated to cost $350 million. Experts say that the number of people still working from home is a big reason this attack works.

Banking and tax info

The North Dakota Department of Financial Institutions is in charge of banks, credit unions, and trust companies chartered by the state of North Dakota. There are 89 banks in the state. North Dakota is the only state which runs a bank. North Dakota is the only state that has set up a government-owned bank. The Bank of North Dakota has been around since 1919. Its goal is to "promote agriculture, commerce, and industry” and “be helpful to and assist in the development of… financial institutions… within the State.”

Most retail purchases in North Dakota are subject to a 5% sales tax.

Sales of alcoholic beverages are subject to a 7% gross receipts tax, new farm equipment used only in agricultural output is subject to a 3% tax, and sales of new mobile homes are subject to a 3% tax.

How TurboDebt Helped North Dakotans With Debt Relief in 2022

TurboDebt’s mission is to help people escape debt from Bismarck to Fargo. With accessibility at the top of our priority list, last year alone, we helped 381 residents from North Dakota. Of those, 156 clients enrolled in our custom debt relief programs. Each client's average debt was $25,884, leading to a total debt enrolled of $4,037,933. On average, North Dakota residents saved an amazing 57.65 percent on their debts before fees. So, if you’re ready for debt relief, TurboDebt has been proven to help North Dakotans escape the debt cycle.

Top Types of Debt to get Relief from in North Dakota

Credit Card Debt

Despite its small population, North Dakota residents carry some of the country's highest average credit card debt. The state ranks 11th in the nation, with residents carrying about $2,100 per person in credit card debt. Travel and shipping costs to the northern state increase fees for North Dakotan families, leading them to depend on credit cards more.

North Dakota residents looking for help with their credit card debt have many choices. Anyone struggling with credit card debt may seek assistance from various institutions, including banks, credit unions, online lenders, non-profit and for-profit credit counseling organizations, and debt settlement companies.

While weighing the pros and cons of working with a debt repayment organization, North Dakota residents should consider their unique financial circumstances. Credit card debt may be dealt with in five different ways: via bankruptcy, debt settlement, debt settlement through a nonprofit, debt management programs, and debt consolidation loans.

Divorce Debt

Separation and divorce are natural consequences of marriage. In the United States, over half of all marriages end yearly. However, this doesn't imply that 50% of American marriages end in divorce. A few states account for most of the nation's high divorce rate.

Divorce rates are much lower in certain other US states. There were 2.5 divorces for every 1,000 North Dakotans in 2019. The divorce rate has decreased from its 1990 high of 3.6 per thousand people.

For those who do decide to divorce, the process may be expensive. In reality, divorce is responsible for almost $10,000 in additional debt for the typical American household. We at TurboDebt don't want a divorce to derail your financial future; therefore, we provide specialized assistance in paying off divorce-related debt.

Business Debt

Taking up debt is often a necessary companion for commercial success. Your company's growth is directly proportional to your success in securing investment or financing. Finding a balance between investments that might lead to rapid expansion and those that could quickly bankrupt your business is difficult.

All debt assessments, positive and negative, need to be made in the context of the company's goals. Borrowing funds is only warranted when they are absolutely crucial to reaching objectives, achieving headway, or fostering expansion. It's simple to run up debt without paying attention to what you'll do with the money left over after you've paid everything off. If you feel your company's debt is holding you back, now could be a good time to see whether you qualify for a debt relief program in North Dakota.

Medical Debt

Americans can’t entirely avoid medical debt, no matter how well they care for themselves. Even if you strictly adhere to the guidelines for preventative care, accidents, and emergencies will still occur, leaving you with a hefty medical bill. Americans are piling up billions of dollars in medical debt from Kansas to California. The total cost of medical debt reached $88 billion by June 2021. The real aggregate medical debt in the United States is likely bigger since not all medical debts in collections are reported to credit bureaus.

North Dakota residents have almost $61 million in medical debt. 50% of people with severe medical debt had bills of more than $2,000.

Compared to other states, North Dakota's medical debt is the lowest.

Homeowner Debt

Homeowners in the United States had an average mortgage debt of $229,242 in 2020. Mortgage debt in the United States varies greatly from state to state owing to the many local factors that might influence mortgage payments.

North Dakotans saw a 5.6% increase in mortgage debt from 2022 to 2023. The amount jumped from $176,559 to $186,810 in that time period. Only eight U.S. states have an average mortgage debt below $150,000.

The penalties for falling behind on mortgage payments can be severe, including foreclosure on your home.

Retirement Debt

Over half of all Americans (47%) expect to have debt when they retire. Paying off debt on a low salary may be difficult and put retirement assets at risk. Debt levels among America's older people are at an all-time high. According to data from the Federal Reserve Bank of New York, the total debt held by Americans over the age of 70 will have increased by 614 percent between 1999 and 2021, totaling 1.27 trillion dollars. It is strongly suggested that you see a financial advisor to prepare for retirement.

Options for debt relief in North Dakota

Debt management programs

A debt management program is a financial strategy where a third party offers assistance to a debtor in return for a monthly fee that is added to the debts. To rephrase, a debt management company will act as a go-between for you and your creditors, collecting all of your payments into a single monthly payment and then distributing the cash to their appropriate accounts. The program is not meant to put you further into debt, but rather to help you regain financial stability. In addition, the National Foundation for Credit Counseling provides no-cost services.

Debt consolidation loans

To make payments on several loans, credit card balances, and other revolving obligations easier to handle, many people choose to consolidate their debts by taking out a new loan. Consolidating your debts might help you save both time and money if you have many loans or credit cards. Remember that a debt consolidation loan could lead to greater monthly payments each month and won't get rid of your debt.

Learn your options and how to be ready to apply for a loan to consolidate your debt.

Debt settlement

You may get some relief from your financial burden and perhaps even get a handle on it with the aid of a debt settlement program. But tread carefully since things might worsen if you don't work with a reliable company. Although many debt settlement companies misrepresent their effectiveness, it is essential to work with a reliable firm like TurboDebt. Customers considering engaging with a debt settlement organization should do their due diligence first, and there are several places they may go, including the Better Business Bureau and Trustpilot.

Debt settlement companies mediate between creditors and debtors to work out lower payments. Interest rates, monthly payments, collection calls, late penalties, and over-the-limit fees may all be lowered. However, the amount saved will depend on the card's specifics and the individual's financial situation. When you work with TurboDebt, we'll help you arrange a payment plan with manageable, low monthly payments at no upfront cost.

Credit counseling

Debt management and credit counseling are two distinct services. Since October 27, 2010, the FTC has ruled that debt relief agencies may not legally demand payment up front.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires debtors to complete credit counseling within six months after filing for bankruptcy. Debtors seeking debt cancellation must also enroll in and successfully complete a recognized credit counseling program.

Consumers may access free budgeting and debt repayment planning help from credit counseling agencies. Consumers with money problems may go to a credit counselor, who can assist them in formulating a plan to resolve their financial difficulties, or they can be sent to a debt management plan (DMP) provider, such as a debt settlement agency.

Credit counseling services often need a flat fee to assess a client's financial situation and provide advice. But, the law as it stands now mandates that credit counseling agencies provide their services at no cost to people with low incomes. The U.S. Trustee Program must approve organizations that provide credit counseling and debtor education under the Department of Justice.

Bankruptcy

North Dakota follows the same procedures for bankruptcy filing as any other state. If you want to start over financially, filing for bankruptcy under federal law rather than North Dakota law is the way to go. This will result in the termination of any existing debt arrangements you may have had with creditors.

Yet, North Dakota law plays a significant role in this scenario. They'll let you know exactly what property you may keep throughout the bankruptcy process. We start with the basics and then move on to the required filing addendum.

The great majority of petitions are filed under Chapter 7 or Chapter 13. It's normal to feel overwhelmed by the variety of bankruptcy options available. The following abridged explanation should clear things up for you.

Chapter 7 bankruptcy is the most common kind filed by debtors, and for good reason. It's a quick choice since you can complete it in a few of months. Moreover, there are zero expenses connected with ignoring debtors. Those of us with just the most basic resources will find this arrangement to be wonderful.

The rich are not safe from financial loss, though, especially if their money is spent on unnecessary luxuries. You may be compelled to sell your house or car if you are behind on payments or if the equity has become too large. The same rule applies to your recreational vehicle, baseball card collection, or Caribbean timeshare. In contrast to Chapter 13, Chapter 7 does not allow you to arrange a payment plan to make up for past due vehicle or mortgage payments. As a result, failing to pay your taxes on time might cause you to lose your home and car.

Filing for bankruptcy under Chapter 13 is a more significant step. In contrast to the streamlined Chapter 7 procedure, Chapter 13 filers have an extended time frame of three to five years to pay off their obligations. But, because to its payment schedule, Chapter 13 offers benefits that Chapter 7 does not. You get to keep all of your possessions if you declare bankruptcy, and in certain cases you may even be able to prevent the loss of important items like your home or car. If you have debts that cannot be dismissed in bankruptcy, you may be able to work out a repayment plan with your creditors under this chapter. What's the single biggest letdown of this paragraph? The cost might add up quickly. The monthly payout is too much money for many people.

Debt forgiveness

The Public Service Loan Forgiveness (PSLF) program was established in 2007 to make the process of erasing student loan debt easier and more expedient. If the borrower continues to fulfill the program's eligibility requirements after ten years of making payments, their debt will be forgiven.

The federal teacher debt forgiveness program is also available to North Dakota teachers. Some full-time teachers working in low-income schools can receive either $5,000 or $17,500 in debt forgiveness benefits from this program.

Consider refinancing your private student loans to determine if you qualify for a lower interest rate and monthly payment.

Debt and Financial Hardship Resources

Due to unforeseen events, instantly repaying a loan is not always possible. North Dakota provides resources to assist those in need in saving money and overcoming financial difficulties. Eligibility for these programs will likely depend on your living in North Dakota.

Temporary assistance programs

You might qualify for assistance unique to North Dakota if you live there. To check whether you are eligible for debt relief, have a look at the following North Dakota programs:

The Helping Housing Across North Dakota (Helping HAND) Program funds single-family home renovation projects that serve low-income families.

Low-income families may become more financially stable via Temporary Assistance for Needy Families (TANF), a government program offering financial aid and resources to help them find and keep a job.

Child Care Assistance Program: Assists low-income families in covering the cost of child care so both parents may work or go to school.

The Children's Health Insurance Program (CHIP) provides financial assistance to low-income working families so that they may purchase health insurance for their children.

Low-Income Home Energy Assistance Program (LIHEAP): Helps low-income households pay for home heating.

State health and human services

North Dakota’s Department of Health and Human Services provides a wide variety of help to North Dakotans in the following areas:

• Adults and Aging
• Financial Support
• Child and Family Services
• Individuals with Disabilities
• Food Programs
• Public Health
• Behavioral Health
• Healthcare Coverage
• Medical Marijuana
• Vital Records

Child care

With the support of Child Care Assistance (CCA), low-income families may afford to send both parents to work, school, or training without choosing between feeding their children or paying for child care. As an incentive for potential workers, the state of North Dakota provides free, subsidized child care.

Shelters for the homeless

There are at least eight homeless shelters throughout the state of North Dakota. Transitional shelters assist the homeless obtain permanent homes and employment, reducing their likelihood of returning to homelessness. Emergency shelters provide temporary lodging for those in need.

ND Continuum of Care offers more help for people experiencing homelessness in North Dakota.

Free transportation services

The North Dakota Department of Health and Human Services offers medical transportation services for non-emergency situations. Members with full coverage and clients with Medicaid Waiver benefits in North Dakota may be eligible for transportation for non-emergency medical needs and/or Waiver-approved transportation. Contact the Medicaid MCO in your state to find out what services are covered and who will deliver your rides.

Conclusion on Finding Debt Relief in North Dakota

Investigating any organization you ask for assistance from when you are in debt is essential. While fielding calls from collection agencies can be stressful, you still need to ensure you know who you’re working with. When you're already over your head with debt, falling prey to a scam or a firm that doesn't have your best interests at heart may be disastrous.

If you want expert assistance in getting debt free, TurboDebt is the place to go. We can assist you in figuring out the best debt relief options to get out from under its crushing weight. Our tailored strategy works best for those with unsecured debt of $10,000 or more. TurboDebt is here to help you get back on track with your finances, whether you have credit card debt, personal loan debt, or any other kind of unsecured debt. The first consultation is on us. If you're carrying too much debt and want to get rid of it in the next two years and a half, now is the time to get in touch.