Texas Debt Relief: Debt Settlement and Consolidation

Texans have one of the lowest credit scores in the country. This is partly from falling behind on bills or making late payments on credit cards. The average credit card debt in Texas was around $5,960 in 2015. This was above the national average of $5,700. Also, Texas cities like San Antonio and Dallas are considered some of the worst-hit areas for credit card debt.

Combine this with student loans and mortgage debt and you can see how Texas residents could benefit from various debt relief options. Debt settlement and consolidating into one low-interest payment every month can allow you to get your finances back in order if you are struggling.

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Debt Relief Options

Debt Settlement

Debt settlement is when your debt is sent to a collector and then a settlement company helps you negotiate with the collector. Some people will use their savings to make a quick and large payment into debt settlement.

Even if your debt has been with collectors for years, you can still use debt settlement to get rid of any outstanding payments.

Debt Consolidation

Consolidation of debt is effective if you don’t have a large sum of money to pay your debt off right away. You can take debt from several credit cards and put them into one smaller payment that has a lower interest rate.

This will often involve taking a personal loan that can cover the amount of your credit card debt. Once you use the personal loan to pay the credit cards off, you will have a higher credit line. In order to keep yourself out of debt, you need to ensure that you don’t put more of a balance on the credit cards again.

Debt Management

This involves you being very proactive about your finances and is the best option if you have a steady income coming in that you can depend on to make the payment every month. Most debt management plans don’t rely on your credit score, so you should be able to secure a plan even with a low score.

Make sure to make all your payments on time and get a lower interest rate than the debt you currently have.

Consumer Debt Counselors

Free credit counseling and consumer debt counseling can help you determine which debt relief plan is best for you. They will also be able to counsel you on what interest rates could benefit you and help you find a way to better pay off your debt faster and more efficiently.

Consumer Debt in Texas

Texas’s unemployment rate is higher than the national average and is home to some of the fastest-growing cities. With people flocking to the more populated areas, consumer debt has increased as people are trying to buy new homes and go to college.

The minimum wage is still stuck at $7.25 an hour which is especially low for people trying to make it in the city. In Texas, 17.8% of people don’t have a high school diploma and 16.6% of people live below the national poverty level.

With these startling statistics, it is easy to see how some people fall prey to debt and then need help getting out.

Credit Card Debt in Texas

The average Texas resident has $3,030 in credit card debt in the most recent reporting year. The national average is about $2,780, so Texas residents have more credit card debt than many people in America.

Statute Of Limitations for Texas Credit Card Debt

The statute of limitation on debt in Texas is four years. This is considerably less than in other states. If you make a payment or verbally acknowledge that you own the debt, the statute of limitations will start over.

This is known as Zombie Debt. A law was passed in Texas in 2019 to help protect people from this. Now all debt collectors need to have in writing that they are taking action past the statute of limitations.

Mortgage Debt in Texas

The average mortgage debt nationwide is $36,730, while in Texas it is $29,200. The cost of housing in Texas, even in the cities, is considerably lower than in other places in the nation. This allows people to be able to purchase homes without going into as much debt as other states.

Student Loan Debt in Texas

Student loan debt is $5,160 compared to the nationwide average of $5,730. Student loan debt is the second-highest debt in America and Texas residents have slightly less student loan debt than the rest of the country.

Auto Debt

Auto loan debt is right around $5,000 for most people in the United States. In Texas, it is $7,000. Texas has more auto debt than any other state.

FAQ's About Texas Debt Relief:

How does a debt relief program affect your credit?

The debt relief program you choose will all affect your credit differently. Some programs will minimally affect your credit, while others can affect your credit score for years and years to come. If you are worried about your credit, use a personal loan or debt consolidation.

Debt settlement will affect your credit the most because it will send all your debt to a collector. Scores sometimes completely tank if there are several debt collectors after you.

Is there really a debt relief program for me?

Debt relief programs will depend on how much debt you have and your current interest rates. The goal of debt relief is to get lower interest rates so you can pay the debt off faster. Debt relief should also make paying your debt easier because you will have one payment a month compared to several that you have to keep up with and remember.

Get Debt Relief in Texas Today

At TurboDebt, we strive to help you take better control of your finances and help you with debt recovery. We have a variety of low-cost solutions and effective strategies that will make paying your debt much easier.

Take advantage of our three-step process that includes strategic planning, advising, and consulting and 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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