• Memphis residents face lower wages and a lower average credit score than the rest of the nation, making debt relief options a helpful tool in overcoming large balances.
  • Top debt relief options for Memphis consumers include credit counseling, debt management plans, debt settlement, and debt consolidation loans.
  • In 2023, TurboDebt saved Memphis residents an average of 53% off their total debt before fees.

Why Is Debt Relief Important in Memphis

Debt relief is an essential tool for Memphis residents living with huge amounts of credit card debt, unpaid medical bills, or outstanding student loans. As many who live in the city struggle with inflation and the high cost of living that has outpaced income, it’s important to understand other factors that impact the city’s economic health.

Although housing and food cost less than the national average in the Memphis area, wages are also lower. Memphis’s average hourly wage sits at $25.32, compared to nearly $30 for the rest of America. Unemployment is also higher in Memphis than the U.S. average. In January of 2024, Memphis had an unemployment rate of 4.3%, up a point from the previous year.

Another area of financial concern for Memphis residents is their average credit score of 630, one of the lowest FICO scores among major U.S. cities. This can cause issues for consumers who want to secure loans at lower interest rates. Lenders look for residents with good credit scores when deciding on the terms of borrowed funds, making it harder for citizens of Memphis to access loans at better rates.

Read on to learn more about how debt relief programs in Memphis help residents overcome their current financial struggles and start rebuilding wealth for the future.

TurboDebt Helps Memphis Residents Get Out of Debt

TurboDebt’s Tennessee debt relief programs have lifted the financial burdens of thousands across the Volunteer state. In Memphis alone, we enrolled an average of $22,333 in debt per client, totaling over $3 million in 2023. We also saved Memphis clients an average of 53% off their total unsecured debt before fees, making it easier for them to live debt-free once again.

Start today with a free consultation to learn more about our customized debt relief plans. We’re ready to help you find the best solution to your debt challenges.

Signs You May Need Debt Relief

It’s easy to start thinking that you’ll never escape your debt. However, assistance from debt relief programs can help you break the cycle of unpaid balances owed to credit card companies, high interest costs on loans and credit balances, and fees for late payments.

Here are some signs it’s time to look at your debt relief options:

  • Feeling stress and anxiety about high debt balances
  • Lacking an emergency fund covering 3-6 months of expenses
  • Receiving frequent calls from debt collectors
  • Maxing out multiple credit card accounts to pay bills
  • Borrowing funds from your 401k to make ends meet
  • Using predatory payday loans to cover costs
  • Carrying a high debt-to-income (DTI) ratio

If you’re experiencing any of these indicators, consider researching the most effective methods to determine the best debt relief solution for your financial situation.

Top Options for Memphis Debt Relief Programs

Here are the most effective options for Memphis debt relief solutions:

Credit Counseling

Credit counseling agencies offer financial education and advice through certified credit counselors. These counselors act as guides to explain your credit score and history, offering suggestions to improve your numbers. We find credit counseling is also a great resource for learning smart fiscal habits like managing a monthly budget and investing for the future.

Many credit counseling organizations function as nonprofit agencies, providing low-cost or even free services to those facing financial hardship.

Debt Management Programs

Another effective strategy, debt management programs (DMPs) help you organize monthly payments with the help of a professional. Many credit counseling organizations also offer DMPs, as do private companies. These organizations manage debts on your behalf, collecting a single monthly payment from you and disbursing it to each of your creditors.

We believe these programs can help consumers who owe multiple debts like student loans, small to medium credit card balances, and ongoing healthcare costs. Committing to a DMP typically means closing out all of your current credit card accounts to ensure you don’t take on more debt.

Debt Consolidation Loans

An additional strategy for paying off your obligations is to combine all of your current debts into a single loan payment. To do this, you’ll need to secure a loan large enough to cover all your outstanding balances. Once your bank or credit union gives you the funds, you’ll pay off your existing creditors and start making a single monthly payment to your new lender.

We suggest that only consumers with strong credit scores of 680 or higher seek debt consolidation loans. If your credit score falls below the “good” category, you may find that your interest rate is the same or higher than that of your existing debt, forcing you to pay more over the course of the new loan. Therefore, it’s critical to obtain a fixed interest rate that’s at least 5 percentage points lower than the average rate on your current debts.

Debt Settlement

While consumers often plan to take out a consolidation loan thinking it’s the best way to pay off large balances, a debt settlement can be even more effective. When you’re carrying huge unsecured debts on credit cards, medical bills, or personal loans, a settlement allows you to negotiate a drastically reduced payment with your lender.

A debt settlement company negotiates with your creditors to secure a debt reduction, sometimes 50% or more of what you originally owed. While you will pay fees to the organization based on your total debt, you’ll also save money and are likely to pay down your debts much faster using this method.

Debt Forgiveness

Most debt forgiveness programs are offered through the state or federal government. These assistance programs typically come with strict requirements and candidates must go through an application process to prove their need. However, if you do qualify, you’ll receive full or partial debt forgiveness for debts like student loans or even mortgages.

We recommend this option for Memphis residents who’ve worked in areas of public service such as education or roles in the government. The Public Service Loan Forgiveness Program is one of the top providers of this type of assistance.

“For additional local government-supported resources, including free credit counseling and debt relief education, The Greater Memphis Financial Empowerment Center (GMFEC) can help,” explains Brad Reichert, a debt expert and the founder and managing director of Reichert Asset Management LLC. “The GMFEC offers free, one-on-one professional financial counseling to all Shelby County residents,” he shares.

“In addition to offering credit and debt counseling, they offer assistance with housing and utility costs and obtaining legitimate, safe and affordable banking and financial services. They also provide free legal services to lower-income residents who may need help with negotiating their debt or fighting an eviction,” Reichert adds.


Because its lasting after-effects can negatively impact your credit for up to 10 years, bankruptcy is not ideal for debt relief. However, Memphis consumers who’ve attempted all other forms of debt relief can pursue bankruptcy as a final option.

Individual consumers typically file either Chapter 7 or Chapter 13 bankruptcy to absolve their debts. In Chapter 7 bankruptcy, a judge determines how to sell off your non-exempted assets to pay your creditors and after that process is completed, may forgive any remaining debt. Chapter 13 forgoes the sale of property in favor of a revised, court-approved repayment plan lasting 3-5 years.

Before you choose which type to file, we recommend speaking with a bankruptcy lawyer at a reputable law firm for legal advice about the process of filing and recovering from bankruptcy.

Why Choose TurboDebt’s Debt Relief Program?

It’s difficult living with debt every day, and we understand the pressures of keeping up with monthly expenses even as interest charges mount on unsecured debts like medical bills and credit cards. TurboDebt has helped thousands of clients from Memphis to Nashville, providing the assistance consumers need to finally break free from debt.

What it means to be a TurboDebt client:

  • Saving an average of 54% on your total unsecured debt before fees
  • Paying off debt faster (often in 24-48 months through our program)
  • Getting highly-rated service backed by thousands of 5-star TurboDebt reviews

It’s time to end your cycle of debt by negotiating with your creditors to reduce big balances. Let our expert team help you navigate the process and make a plan that fits your finances. Call us today for a free consultation and start your journey toward financial freedom!