North Dakota Debt Relief
19 MIN READ
Published April 05, 2023 | Updated February 07, 2024
In a Nutshell
Credit counseling, debt settlement, debt management, and debt consolidation are all viable choices for North Dakota residents seeking debt relief.
Compared to the rest of the nation, North Dakotans have one of the lowest unemployment rates and relatively low levels of credit card debt. However, many residents still find themselves in debt from an uncertain economic environment.
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. Read on to find out more about the most common forms of debt North Dakota residents 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 also comes from just this state.
North Dakota bears a significant Native American population, representing nearly 6% percent of the total residents, with reservations located throughout the state.
In 2021, poverty affected over 11% of North Dakota's population, rising from 10.5% to 11.1% in one year.
How Does Debt Relief Work in North Dakota?
Some of the most effective debt relief organizations provide services to help you manage your debts. Their goal is to negotiate a lower payment for high-interest balances, provide financial education, and set up an affordable monthly payment plan.
Residents of the Peace Garden State can choose various methods to decrease their debt, including debt settlement, counseling, consolidation, and bankruptcy. 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.
North Dakota Debt and Finance Statistics
Average Consumer Debt
Consumer debt involves combining the average amount of debt for auto loans, student loans, mortgages, and credit cards. North Dakota residents carried an average consumer debt of $88,441 in 2022, up 3.8% from the previous year.
Credit Card Debt
North Dakotans carry an average credit card debt of $5,183. The typical American has $5,589 in credit card debt.
Auto Loan Debt
The outstanding vehicle loan debt in the United States hit a new high of $1.41 trillion in 2022. North Dakotans carry an average auto loan debt of $23,758, a 5% increase from the year before.
While average house prices in North Dakota rose 3.5% over the previous year in May of 2023, many homebuyers are stuck with more debt as interest rates rise and home prices keep soaring.
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, while 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.
According to the New York Fed’s Center for Microeconomic Data, U.S. household debt has grown by nearly $4 billion in the fourth quarter of 2022, bringing the total to $16.9 trillion.
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 the year.
Thankfully, bankruptcy rates have sharply decreased since 2005, and the Peace Garden State only saw a total of 414 cases in 2022. 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.
Average Income and Employment
North Dakota’s median household income is $68,131, with a per capita (individual) income of $37,343.
North Dakotans also rank highly for their average credit scores, holding steady at 733 in both 2021 and 2022.
Since a credit score looks at your past credit history and current standing to predict how you'll use credit in the future, this equates to how likely you are to pay back loans on time.
Credit scores are partly 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.
North Dakota had among the lowest identity theft reports in 2022, with only 112 reported incidents per 100,000 residents.
Identity thieves use another name to file a fake government form. This is often the most common way that someone commits fraud. Credit card fraud is the most common type committed, at 43.7% of all cases in 2022.
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 currently 64 banking institutions located throughout the state.
North Dakota is the only state with 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, and 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 2023
TurboDebt’s mission is to help residents from Bismarck to Fargo escape debt. With accessibility at the top of our priority list, last year alone, we helped 381 residents from North Dakota. Of those, 226 clients enrolled in our custom debt relief programs. Each client's average enrolled debt was $27,209, leading to a total debt enrollment of $6,149,154. On average, North Dakota residents saved 54.85% 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 pretty hefty amounts of credit card debt. The state ranks close to states with a much larger population, with residents carrying about $5,183 per person in credit card debt. Rising inflation forces many to start charging more on credit accounts to make up for the lack of income, as goods and services cost significantly more.
North Dakota residents looking for help with their credit card debt have many choices. Residents 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.
For those who go through the difficult process of divorce, legal proceedings can become quite expensive. In the Peace Garden State, the average divorce costs $8,000, often leaving residents indebted after splitting assets and covering legal fees.
At TurboDebt, we don't want a divorce to derail your financial future. That's why we provide specialized assistance in paying off divorce-related debt.
Debt is often a necessary companion to commercial success in business. 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.
It's easy 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.
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.
North Dakota residents owe $61 billion in medical bills, with an average of $1,551 per person. For those without insurance, the costs can be staggering and leave you deeply indebted.
TurboDebt offers help for North Dakota residents stuck with overwhelming medical bills. Contact us today to get started with a free consultation so we can start planning how you can become debt free.
Homeowners in the United States carried an average mortgage debt of $236,443 in 2022, up 7.3% from the previous year.
North Dakotans saw a 5.6% increase in mortgage debt from 2022 to 2023, when the average amount jumped from $176,559 to $186,810. First-time home buyers are finding it more difficult than ever to afford a home as prices rise and interest rates soar.
The penalties for falling behind on mortgage payments can be severe, including foreclosure on your home. Don't let homeowner debt endanger your property. Contact the experts at TurboDebt today to find out how we can help you.
Debt levels among America's older population are at an all-time high. Only a quarter of Americans have set aside enough funds to retire comfortably. Paying off debt on a fixed income can be difficult and put retirement assets at risk.
While seeing a financial advisor to plan for retirement can help you prepare for the future, if you're stuck with debt after retiring, it may be time to seek help from a debt relief company like TurboDebt.
Options for Debt Relief in North Dakota
Debt Management Programs
In a debt management program, a debt management company will act as a go-between for you and your creditors, turning your debts into a single monthly payment and then distributing the cash to their appropriate accounts. The program is meant to help you regain financial stability.
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 a good credit score.
Remember that a debt consolidation loan could lead to greater monthly payments each month unless you secure a favorable interest rate. It also doesn't eliminate your debt but instead transfers it into a lump-sum payoff for creditors and a single loan payment for you.
Debt settlement companies mediate between creditors and debtors to work out lower payments. This option can be effective for credit card debt, as settlement organizations can often reduce your total balance by 50%.
Once you enroll in a debt-settlement service, you'll make payments to the organization instead of the card company, saving up enough to pay off your debt.
It's essential to work with a reliable firm that doesn't ask for fees upfront. Customers considering engaging with a debt settlement organization should do their due diligence first. You can check several places for reviews and accreditation, including the Better Business Bureau and Trustpilot.
Consumers may access free budgeting and debt repayment planning help from credit counseling agencies. Credit counselors can assist indebted residents in formulating a plan to resolve their financial difficulties. Counselors may also suggest a debt management plan (DMP) provider, such as a debt settlement agency.
Credit counseling services are often free or charge a small flat fee to assess a client's financial situation and provide advice. Credit counseling agencies typically 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.
North Dakota follows the same procedures for bankruptcy filing as any other state. If you want to start over financially, you'll file for bankruptcy under federal law rather than North Dakota law. This can result in the termination of any existing debt arrangements you may have had with creditors.
Most individuals file under Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is the most common kind filed by debtors. You can often complete the proceedings in a few months. Under Chapter 7, your assets are liquidated to pay off debts. If you have no viable assets or income to cover debts, the court can also waive any remaining payments.
Filing for bankruptcy under Chapter 13 is a more significant step. In contrast to the streamlined Chapter 7 procedure, Chapter 13 filers use an extended time frame of three to five years to pay off obligations. You get to keep all of your possessions if you declare Chapter 13 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 can't be dismissed in bankruptcy, you may be able to work out a repayment plan with your creditors under this chapter, although the monthly payout may be high.
Debt forgiveness is a form of debt relief typically offered through federal programs. To earn debt forgiveness, you'll need to qualify based on factors like your income or job status. If you meet the requirements, some or all of your debt is erased.
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.
Debt and Financial Hardship Resources
Due to unforeseen events, repaying a debt isn't always possible. It can be hard to avoid debt collection agencies when you’re trying to meet your basic needs. North Dakota provides resources to assist in saving money and overcoming financial difficulties. Eligibility for these programs will likely depend on your income, family situation, and living arrangements within the state.
Temporary Assistance 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 those in need find and keep a job.
The 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
Shelters for the Homeless
There are several homeless shelters throughout the state of North Dakota. Transitional shelters assist the homeless in obtaining permanent homes and employment, reducing their likelihood of returning to homelessness. Emergency shelters provide temporary lodging for those in need.
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.
Finding Debt Relief in North Dakota
Investigating any debt relief organization is an important step in getting your finances back on track. 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, TurboDebt is here to help. We can assist you in finding your best debt relief options to start working toward a debt-free life. Our tailored strategies work best for those with unsecured debt of $10,000 or more.
Whether you have credit card debt, personal loan debt, or any other kind of unsecured debt, let TurboDebt assist you through advising, strategic planning, and debt settlement options. Your initial consultation is free. If you're carrying too much debt, it's time to break free. Contact us today to start rebuilding your wealth.