Tennessee Debt Relief: Debt Settlement and Consolidation

Overall, Tennessee has the fifth-lowest amount of state debt in the United States with a debt ratio of 17.3%. Its financial standing is pretty solid overall, but people still struggle with all types of consumer debt.

The large cities in Tennessee such as Memphis and Kingsport have high poverty rates and 19.3% of the state’s children are said to live below the poverty line. The average interest rate for credit cards is 16%. With people using credit cards to pay for basic living expenses, high balances and high-interest rates can make paying off your cards difficult. Looking at options for debt settlement and debt consolidation can help put your finances back on track.

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Debt Relief Options

Debt Settlement

This plan involves working with a company that can negotiate with creditors for you to get you a settlement less than the amount you owe. If you are always falling below minimum payments, this could be a good option for you. However, it will have a negative impact on your credit score.

Settlement contracts can range from 3 to 5 years or sometimes longer. During this time, you will put an agreed-upon amount of money into a savings account to pay back the settlement. You will not pay the creditors or make payments on your cards during this time.

Debt Consolidation

Consolidating debt involves taking all of your debt, including from credit cards, and putting it into one monthly payment plan. It usually involves taking out a personal loan with a lower interest rate than what your credit cards have.

This is a better option if you need to combine debt from several different areas. It also makes payments easier and is less to remember each month.

Debt Management

Debt management will require discipline and budgeting. If you have small amounts of debt or need help getting finances together, debt management can show you where you are overspending. You can then save this money and use it to make high payments on your credit cards.

Consumer Debt Counselors

A consumer debt counselor can help consult your creditors to see if they can get lower interest rates for you. They will also be able to look over your options and recommend the best ones based on your situation. In some cases, they can even get your interest rates cut by half, saving you ample money as the years' pass.

Consumer Debt in Tennessee

Tennessee does not have state income tax and is a very friendly state in terms of taxes. However, Tennessee residents still struggle with consumer debt by having an overwhelming mortgage, credit card debts, and student loan debts.

The debt-to-income ratio is lower than many other southern states though which puts them at better financial standing than their neighbors. Overall, household debt is about $42,500 in Tennessee and the median household income is $9,641 below the national income at $56,071. The larger cities have more debt, but they also have higher incomes. This includes Nashville, Memphis, and Knoxville.

Credit Card Debt in Tennessee

The national credit card debt for Americans is about $6,194. People in Tennessee have an average amount of $5,688 in credit card debt. This makes them 28th in the nation. Even though it is below the national average, most Tennessee residents have some form of credit card debt.

Statute Of Limitations for Tennessee Credit Card Debt

The statute of limitations for credit card debt in Tennessee is 6 years, which is the national average. It starts from the day you made your most recent payment. After 6 years, a creditor or lender cannot take legal action against you in order to receive payments.

Mortgage Debt in Tennessee

Tennessee has a lower cost of living compared to many other states, but mortgage debt still accounts for the state’s largest amount of debt. The average mortgage debt is $155,844 in Tennessee.

Student Loan Debt in Tennessee

In 2020, residents in Tennessee have an average student loan debt of $36,200 and more than 818,000 people had student loan debts. That is about 12% of the population. After the mortgage, student loan debt is the second-highest debt amount held by most people after mortgages.

Auto Debt

The average loan debt in Tennessee is about $4,780 and it is $5,000 nationwide. Tennessee has about an average rate for auto loan debt Tennessee, but it is higher than other states in the south.

FAQ's About Tennessee Debt Relief:

How does a debt relief program affect your credit?

The program you choose will all affect your credit differently. Debt settlement will have the most negative effect and could stay on your credit report for as long as 7 years. Some people see their credit even completely tank with a debt settlement because you will be defaulting on payments.

Debt consolidation will require a good credit score to begin with to secure a low-interest loan, but you may see your score drop a little as with any time you accrue more debt. Debt management will affect your credit score the least of all.

Is there really a debt relief program for me?

Everyone’s debt is different, and every program will look different. No matter the level of your debt or interest amount, there is always a debt relief program that will work for you. Depending on your credit score, your interest rate could be much lower and repayment time lessened by several years.

Even people with high amounts of debt find options with debt relief programs and are on their way to wealth again.

Get Debt Relief in Tennessee Today

TurboDebt is a great company to work with if you are looking for debt relief solutions. We offer a free debt relief consultation online so you can get started easily and quickly, as well as a three-step plan for every client that includes strategic planning, advising, and consulting.

We also know that not everyone’s situation is the same, and have many different methods that are perfect for any situation. Find debt relief in your state today.


How Much Do You Owe?

Select your debt amount:


How Much Do You Owe?

Select your debt amount:




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