Pennsylvania Debt Relief
4 MIN READ
Published April 05, 2023 | Updated September 09, 2025
Written by Christie Hudon
Edited by Wes Silver
Turbo Takeaways
Pennsylvanians have a lot to be proud of: their historical sites, lush valleys, and arguably the biggest chocolate empire in the U.S. Home to the Declaration of Independence and the timeless beauty of Amish farmlands, the Keystone State offers residents so many reasons to call PA home.
While Pennsylvania may be known for cheesesteaks, pretzels, and the Liberty Bell, there’s more to the story. The fifth-largest state in the nation, residents are also burdened by increasing amounts of debt as inflation makes it harder to afford even essential items and services.
The Keystone State’s debt-to-income ratio sits at 1.12, meaning that for every dollar Pennsylvanians earn, they owe even more. If you’re like many other Pennsylvania residents, you’re facing debt from credit cards, loans, or medical bills that are increasing faster than your income.
In times of economic uncertainty, taking control of your outstanding debts can change your financial situation. Pennsylvania debt relief programs can help you eliminate debt without declaring bankruptcy.
Read on to learn about debt relief options for Pennsylvania residents and find the right fit for your financial situation and goals.
Your Options To Get Out of Debt in Pennsylvania
Credit Counseling
Keystone State residents can find a credit counselor to start discussing the debt relief process and get sound financial advice.
| How It Works in Pennsylvania |
| Certified credit counselors operate throughout PA, working for private and non-profit organizations. Once you connect with an organization, you’ll be assigned a counselor for one-on-one sessions to strategize ways to overcome financial challenges. |
| Pros |
| Credit counseling often includes financial education resources like classes or seminars to help you reshape your spending or learn about strategies like saving and investing. Services can also involve a deep dive into your credit history and score so you understand how creditors view your financial past and future. |
| Cons |
| While credit counselors offer advice, you’ll need to enroll in an actual debt relief program to get help paying off debts. If you go through credit counseling, but don’t make a plan and start paying down balances, you won’t truly benefit from any expert advice. |
| Cost |
| The costs of credit counseling services are typically low, with minimal fees for enrolling with an organization. Some companies offer reduced fees or waived fees for those who meet certain financial hardship requirements. |
| Stats |
| Thousands of credit counselors work with consumers across the United States. You can find an accredited professional through the Financial Counseling Association of America. |
| Resources |
| Learn more about how credit counseling works from TurboDebt’s® resource blog. |
Debt Management
One way to streamline repayments is to enroll in a debt management plan. Many credit counseling organizations offer this option.
| How It Works in Pennsylvania |
| Debt management programs (DMPs) help consumers by making payments on their behalf. Once you enroll in a plan, you’ll start paying funds directly to the organization that will, in turn, pay your creditors. |
| Pros |
| Enrolling in a DMP takes the guesswork out of paying bills each month. If you get off track and forget to pay credit card balances or loans, a DMP could help you avoid late fees and missed payments. |
| Cons |
| Debt management programs require a strict focus on repayment. You’ll typically have to close out most, if not all, credit card accounts as part of your enrollment process. |
| Cost |
| You’ll pay a monthly fee for each account you enroll in a DMP, plus a start-up fee. Costs range from $20-$30 a month for each account and about $40 to get started with the program. |
| Stats |
| With an average of $84,620 in consumer debt, Pennsylvanians can benefit from structured debt repayments through a DMP. |
| Resources |
| Read more about the pros and cons of debt management programs. |
Debt Consolidation
Consolidating debt involves several methods for reducing interest and simplifying debt repayments.
| How It Works in Pennsylvania |
| Residents of the Keystone State have a few options to consolidate debt and hopefully reduce interest payments. The first is to secure a debt consolidation loan big enough to pay off all current debts. Another option that can benefit consumers with moderate credit card bills is to open a zero-interest balance transfer credit card. This type of card helps consumers avoid interest and catch up on payments to end rolling balances. |
| Pros |
| Debt consolidation loans swap multiple bills for a single repayment each month, often at a lower interest rate. Zero-interest balance transfer cards create a reprieve from recurring interest payments, giving Pennsylvanians a chance to pay off moderate credit card debts. |
| Cons |
| Consumers lacking a credit score high enough to qualify for good rates could end up paying more in interest over the course of the new loan. A drawback to balance transfer credit cards is the time limitations to pay back your balance. If you don’t pay everything off within the zero-interest period, you’ll owe sky-high interest rates on anything left over. |
| Cost |
| The cost of debt consolidation varies based on your total debt balance and interest rate for the loan. It’s important to read the loan contract carefully to learn about any additional fees. You may pay balance transfer and activation fees to open a new credit card, which are typically low. |
| Stats |
| Pennsylvania’s average credit score of 722 means many consumers will likely qualify for better interest rates when taking out a debt consolidation loan. |
| Resources |
| Discover what debt consolidation programs involve and how they impact consumers. |
Debt Settlement
Pennsylvanians with $10,000 or more in credit card debt can reduce debt and pay it off faster using a debt settlement program.
| How It Works in Pennsylvania |
| Residents of the Keystone State with large unsecured balances may qualify for a debt settlement plan and get expert help through a trusted organization like TurboDebt®. This process involves negotiating with creditors for a reduced payoff after collecting a lump sum. Once you enroll in a debt settlement program, you’ll send monthly payments to the organization, building up a savings account to pay off debts. |
| Pros |
| Debt settlement plans help consumers pay off debt in 12-48 months and reduce their overall debt balances. |
| Cons |
| The process of debt settlement causes your credit score to drop. |
| Cost |
| Legitimate debt settlement companies don’t charge any fees until your debt is settled. Once you’ve cleared your balance, you’ll owe fees ranging from 15% to 25% of your enrolled debt. |
| Stats |
| Pennsylvanians owe an average credit card debt of $6,245, making debt settlement an effective option for residents struggling with even higher balances. |
| Resources |
| Find out how debt settlement effectively clears debt for qualifying consumers. |
Bankruptcy
As a final option for clearing heavy debt loads, bankruptcy is a lengthy process that impacts your payment structure and credit history.
| How It Works in Pennsylvania |
| Pennsylvanians who’ve exhausted all other options for debt relief may choose to work with a bankruptcy attorney to adjust debts in court. Individual consumers typically file either Chapter 7 or Chapter 13 bankruptcy to liquidate assets for repayment or create a payment plan with the help of a judge. Residents file through the western, eastern, or middle bankruptcy courts in PA, depending on their region of residence. |
| Pros |
| Bankruptcy can effectively reset your financial situation, giving you a fresh start without debt. |
| Cons |
| Even though you’ll clear debts, your credit score and history are impacted for up to 10 years when you declare bankruptcy. This makes it difficult to open new lines of credit or apply for any loans even years after bankruptcy proceedings. |
| Cost |
| You’ll pay up to $10,000 in legal fees for an attorney, plus small filing fees with the courts in your region. |
| Stats |
| A total of 13,427 PA residents filed for bankruptcy as of June 2025. This represents an 18% increase from the previous year in the eastern and middle districts. |
| Resources |
| Review how this process affects your financial life and what life is like after you file for bankruptcy. |
What You Need To Know About Debt in the State of Pennsylvania
Statute of Limitations on Debt Collections in Pennsylvania
Pennsylvania’s statute of limitations on debt collections provides rules and legal boundaries for consumers and creditors. These statutes limit the amount of time a creditor can pursue legal action against a debtor. While debts don’t disappear for the consumer, regulations keep both parties accountable and help protect against fraud.
Here’s a closer look at the statute of limitations on debt collections in PA:
| Type of Debt Agreement | Length of Time Collectible |
|---|---|
| Written Contracts | 4 years |
| Promissory Notes (such as mortgages) | 4 years |
| Open-Ended Accounts (credit cards, HELOCs) | 4 years |
| Oral Agreements | 4 years |
| Medical Debt | 4 years |
Student Loan Forgiveness in Pennsylvania
While Pennsylvania doesn’t offer any state-sponsored loan forgiveness for students, consumers may qualify for several federal loan forgiveness programs, including:
- Teacher Loan Forgiveness: Educators who teach for five consecutive years in a low-income school district or educational office may qualify for forgiveness of up to $17,500.
- Public Service Loan Forgiveness: Consumers who work full-time for federal, local, or tribal governments, or certain non-profit organizations, may qualify for loan forgiveness.
Resources for Financial Assistance in Pennsylvania
Here are some of the ways residents can get financial assistance in Pennsylvania:
- Temporary Assistance for Needy Families (TANF): Pennsylvania administers the federal TANF program, which provides cash assistance for low-income families across the Keystone State.
- Diversion Program: PA also offers a one-time alternative to ongoing TANF payments through Diversion, which provides a lump sum for short-term assistance to Pennsylvanians in need.
- Supplemental Nutrition Assistance Program (SNAP): Formerly known as Food Stamps, Pennsylvania also offers the federal SNAP program, helping low-income families and individuals purchase healthy food.
- Pennsylvania Unemployment Assistance: PA offers help to residents who’ve lost a job through no fault of their own.
While Pennsylvania stimulus checks assisted many families and individuals during the COVID pandemic, no new funds are planned for 2025.
Get Professional Help Paying Off Your Debt
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