Rhode Island Debt Relief

In a Nutshell

When looking for debt relief in Rhode Island, it's critical to understand your options. At TurboDebt, we help people with credit card, medical, and other debts every day. Our goal is to help you figure out the best course of action for your unsecured debt.

With help from our program, we saved Rhode Island residents an average of 51.35% of their total debt before fees last year. Don’t hesitate to reach out to see how much you could save, or read on below to get all the information you need on debt, financial hardship resources, and relief in Rhode Island.

Rhode Island Economic Profile

Rhode Island sits on the nation’s east coast and is the smallest state at 48 miles long and 37 miles wide. It has a population of over 1.1 million residents.

Rhode Island may be the smallest state in the nation, but its cost of living is higher than many states twice its size. In Providence, for instance, the cost of living is 111.8% higher than the national average. 

Against a per capita income of $39,603, Rhode Island residents carry an average consumer debt of over $90,000. Without intervention, a debt-free life is a far-off dream for many residents of Rhode Island.

As of 2022, Rhode Island had a GDP of $55.46 billion at an annualized growth of 2.1% over the past five years. The five largest sectors and their contribution to the GDP are:

• Real Estate & Rental & Leasing: $7.5 billion
• Healthcare & Social Assistance: $5.459 billion
• Finance & Insurance: $5.048 billion
• Manufacturing: $4.558 billion
• Professional, Scientific & Technical Services: $3.9 billion

The largest five industries in the Ocean State include commercial banking, colleges and universities, property, casualty and direct Insurance, hospitals, and public schools. Altogether, they contribute a total of $29.7 billion in revenue annually.

How Does Debt Relief Work in Rhode Island?

Rhode Island debt relief involves various debt relief options to help alleviate your indebtedness and put you on the path to a debt-free life. These options apply to secured and unsecured debts.

Federal and state government agencies, non-profit organizations, and debt relief companies offer debt relief programs in Rhode Island. Most begin by evaluating your financial situation and recommending debt management programs. 

TurboDebt provides effective debt relief services in Rhode Island, saving consumers an average of almost 60% of their total debt before fees.

Rhode Island Debt and Finance Statistics

Here are some key facts and findings when it comes to debt and the financial situation in Rhode Island:

Average Consumer Debt

The average consumer debt in Rhode Island was $97,864 in 2022. This figure includes mortgages, credit card balances, student loans, and auto loans.

Credit Card Debt

The average Rhode Island borrower owes $5,534 on credit cards. This is close to the national average of $5,589.

Auto Loan Debt

As with elsewhere in the country, a car is a near necessity in Rhode Island. In 2022, each Rhode Islander owed an average auto loan balance of $17,981, an 8.1% increase from 2021. 

Coupled with taxes and interest rates, owning a car in the state can quickly put you in a tight spot, especially if you miss a payment. Newer cars, particularly popular styles like SUVs, can take longer to pay off, leaving you to pay the interest longer on your car loan.

Mortgage Debt

In May of 2023, homes in Rhode Island cost about $427,881.

The Ocean State ranks 17th in the nation for mortgage debt, with each homeowner owing an average of $227,530.

Student Loan Debt

Rhode Island residents owe the federal government $4.7 billion in student loans. Each of the state's indebted residents owes an average of $32,936, making up 13% of the total population. 

Bankruptcy

In 2022, 793 people filed for bankruptcy in Rhode Island, a sharp drop from almost 5,000 people in 2011. 

In Rhode Island, as in the rest of the United States, most bankruptcy filings are made under Chapters 7, 11and 13 of Title 11 of the United States Code, aka Bankruptcy Code. Filing under each of the chapters has different implications.

Under Chapter 7 bankruptcy, individuals are discharged from all their debts except for mandated payments like child support arrears and tax debts. Chapter 13 gives individuals the chance to forgo liquidating their assets in exchange for a payment plan to creditors. Under Chapter 11, businesses can reorganize and pay off their debts without losing property, allowing them a fresh start.

Average Income and Employment

Out of the 1.1 million Rhode Island inhabitants, over 562,000 are employed in the public and private sectors. The public sector employs the majority, with the rest divided among various industries in the private sector.

The Ocean State's per capita income is $39,063, while the median household income is $74,489. 

Credit Score

Rhode Island has an average credit score of 723, which according to FICO’s ratings, is good. FICO calculates your score by using payment history, the amount owed, length of credit history, and new credit and credit mix. Your credit score determines your access to loans and the cost of accessing them.

Identity Theft

In 2022, Rhode Island suffered 2,420 incidents of identity theft, ranking them 20th in the most reports per population.

Identity theft entails a thief using your identity for financial gain or as a mask for criminal activity. Report to the police as soon as you discover identity theft. Also, take precautions to safeguard access to your finances and financial information, as this kind of fraud can result in financial loss.

Banking and Tax Info

A total of 7 local and national banks operate in Rhode Island, overseeing $237 million in assets. 

Rhode Island individual income tax is graduated from 3.75% - 5.99%. Corporate income is charged a flat 7%, as is the state sales tax on goods, except groceries and clothing below a specific value. Rhode Island levies a property tax at $1,298 per $100,000 in assessed home value.

How TurboDebt Helped Rhode Island Residents Get Debt Relief in 2023

TurboDebt has helped many residents of Rhode Island with their debt. In 2023 alone, we assisted a total of 861 individuals, enrolling 269 in our debt relief programs. The total enrolled debt for the same year was $6,367,164, with each enrolled client averaging $23,670 in debt. Thanks to the professionals at TurboDebt, residents of Rhode Island recorded a savings of 51.35% on average before fees.

Top Types of Debt to Get Relief from in Rhode Island

Here are the most common types of debt burdening Rhode Island residents:

Credit Card Debt

Since they are unsecured loans, the interest rate on credit cards is proportionately higher, and defaulting on your accounts only pushes the cost up further, making it harder for the cardholder to pay it off without assistance. Also, defaulting on your credit cards ruins what good credit you may have.

TurboDebt is here to assist you with credit card debt relief. We've helped clients by negotiating more favorable repayment terms when credit card balances become overwhelming. 

Divorce Debt

Divorce can become a financially destabilizing process. Often, divorce will leave you with hefty legal fees, debt obligations incurred during the marriage, possible divorce settlement, and alimony. After a divorce, you may fall behind on other debt obligations and incur higher interest and late fees.

TurboDebt offers divorce debt relief to Rhode Island residents, giving you options to get your finances back on track.

Business Debt

Debt is often an inevitable part of ownership for small businesses in Rhode Island. However, improperly managed debt may cause cash flow problems which affect inventory purchases, overhead funding, and payment of wages. If poorly managed, the debts may even lead to the business collapsing.

Rather than closing down or resorting to bankruptcy, business owners can turn to a company like TurboDebt for Rhode Island business debt relief. We offer strategic planning and consulting along with settlement negotiations to reduce your debt burdens. 

Medical Debt

Rhode Island offers medical coverage to help residents without insurance. The Medicaid program offers medical coverage to those with low income, and the state also extends health services to residents in need.

However, it is still possible to get stuck with large medical bills that you have to pay out of pocket. For instance, in 2020, Rhode Island residents owed an average of $1,301 in medical bills, with 5.6% of all medical debt in collections. 

Rhode Island medical debt relief may come in handy to help such people overcome debt and live debt free. Contact the experts at TurboDebt to find out how we can help you. 

Retirement Debt

Rhode Island may be a scenic state with fantastic seafood, but it ranks among the most expensive states to retire. WalletHub ranks Rhode Island 39th in affordability for retirees.

If they haven't saved enough for comfortable living, senior residents will likely find themselves in debt, especially for living expenses and medical coverage. TurboDebt offers Rhode Island retirement debt relief to help seniors manage outstanding balances, even on a fixed income.

Options for Debt Relief in Rhode Island

Here are some of the most effective debt relief options to help you discharge your outstanding balances: 

Debt Management Programs

A debt management program is a plan set up by a credit counselor or private organization after evaluating your financial situation. The goal of a management program is to resolve your debt in an affordable and timely way. 

Your plan may involve closing lines of credit, negotiating lower payment amounts, and securing lower interest rates. Once you commit to following a debt management plan, you can begin to restore your credit and start working toward a debt-free life. 

Debt Consolidation Loans

A debt consolidation loan is a way to refinance multiple smaller loans, leaving you with one manageable monthly payment. Once you secure the loan, you'll pay off all of your outstanding accounts to end any other payments. 

Debt consolidation loans can be cheaper than the multiple loans you pay off if you have good credit. A higher FICO score can mean more access to loans at better interest rates. 

When securing a consolidation loan, it's important to understand the terms. Some loans offer low interest for an introductory period, but the rates increase after a set time. 

Debt Settlement

A debt settlement is an agreement with your creditors, often a credit card company, to let you pay off only a reduced portion of your debt on the condition that you do it in one lump sum.

For creditors, debt settlement is a more attractive prospect than you defaulting on your account. You can choose to complete the negotiations yourself or work with a reputable Rhode Island debt relief company. 

Debt settlement companies can often settle with a credit card company for up to 50% of what you owe. However, you will also owe a fee to the organization based on how much debt you enroll.

Credit Counseling

Credit counseling usually involves empowering you to take charge of your financial affairs. Credit counseling agencies take time to review your financial situation and help you choose the appropriate debt relief option. A credit counselor may also help you understand your credit report so you get a better picture of how lenders view your debt situation.

Sometimes, like in debt management programs, the credit counseling agency may negotiate and administer the agreement on your behalf. Non-profit credit counseling can be an effective solution if you can't afford paid services.

Debt Forgiveness

In debt forgiveness, the creditor decides to release you of the whole or part of your obligation toward them. This practice is uncommon with private organizations and is typically offered through government programs at the state and local levels. 

Student loans are popular candidates for debt forgiveness, as are mortgage debts, especially for low-income families. Rhode Island will forgive certain student loans if the debtors work in particular areas of public service within the state.

Debt and Financial Hardship Resources

These are some of the services and resources available in Rhode Island should you find yourself in financial hardship:

Temporary Assistance Programs

Most of the temporary assistance programs indicated here are offered or administered by the Department of Human Services (DHS) in the Office of Health and Human Services.

The services and programs include:

• Energy and Water Assistance: The program ensures that residents can access utilities like energy and water, even if they cannot temporarily afford them. Lack of energy is critical and may be fatal in the winter months.
• General Public Assistance (GPA): GPA offers cash to adults from 18 to 64 years old who cannot work. The assistance lasts only for the period it takes to determine their SSI eligibility.
• RI Works Program: The RI Works Program seeks to help parents of high school students or younger find stability in the long run by teaching employment readiness skills and providing a temporary cash stipend. The primary aim is to encourage beneficiaries to become gainfully employed.
• SSI State Supplemental Payment: SSI offers supplemental income to recipients of federal SSI welfare assistance.
• Supplemental Nutrition Assistance Program (SNAP): The federal government offers SNAP to supplement the nutritional needs of citizens in temporary financial hardship.

State Health and Human Services

Programs from State Health and Human Services include Medicaid and Medicare, which offer medical coverage to low-income groups.

Child Care

Rhode Island's Child Care program helps parents and guardians access affordable, high-quality, safe childcare for their kids while they're at work.

Shelters for the Homeless

Rhode Island offers an emergency housing service that connects you via a provided phone number with emergency shelter facilities if you’re homeless.

Free Transportation Services

The Rhode Island Public Transit Authority (RIPTA) sometimes offers free transport on specific routes. Always check for availability with RIPTA or any of the regional transit systems within Rhode Island.

Get Debt Relief in Rhode Island Today

Your unique debt situation can help you decide which debt relief options are most effective. Take care not to fall into the hands of scammers or inexperienced service providers who charge upfront fees and don't offer legitimate assistance. Be sure to do your due diligence before coming to a final decision by checking reviews from trusted sources and looking for accreditation through the Better Business Bureau or on the company website. 

TurboDebt has experience providing debt relief services nationwide, with thousands of positive reviews online. Get in touch with us today for a free consultation to see how we can assist you in becoming debt-free.