Texas Debt Relief: Expert Strategies to Overcome Financial Strain
17 MIN READ
Published March 16, 2023 | Updated February 11, 2025
Expert Verified
Written by Christie Hudon
Edited by Wes Silver
Reviewed by Brad Reichert
Debt weighs heavily on numerous Texans. If you're facing any financial difficulties, TurboDebt’s programs and resources aim to offer solutions and help you get back on track. We understand that Texans need choices to help relieve unsecured debt, especially since Lone Star State residents carry some of the highest credit card debt in the nation.
Financial expert and Founder and Managing Director of Reichert Asset Management LLC, Brad Reichert, offers the following advice to individuals seeking help with excessive debt:
“When searching for a debt relief program in Texas, verify that the debt relief organization is properly licensed and registered to offer its services in Texas. Check if they comply with the state's regulations, such as the Texas Debt Management Services Act and the Texas Credit Services Organization Act.” Reichert advises.
Read on for information about Texas debt relief, including debt statistics, options for relief, and answers to common debt relief questions.
You know what they say about Texas: everything is bigger. It’s the second most populated state in the U.S., just behind California. It’s also one of the most popular states for people to seek residence in because of its low cost of living and freedom from state income tax.
While the “Lone Star State” may sound like a dream come true for cost savings, the amount of debt Texans have piled up is definitely one of the “big” parts of the state.
Credit card debt in Texas ranks higher than the national average. Because of this accrued credit card debt, along with missed and late credit card payments, Texas has one of the lowest credit scores in the US.
While it may be cheaper to live in Texas, with the low cost of living and access to multiple low-priced services, debts can still add up fast and put consumers in financial trouble. Fortunately, Texas debt relief options give Lone Star residents the chance to get a fresh financial start.
If you're struggling financially, a Texas debt relief company can give you the tools and assistance you need to manage your money and work toward living debt-free.
Debt relief is the process of relieving consumers of unsecured debts like personal loans and credit card bills through a specific payment plan. Finding the right debt relief option for Texas residents depends on their specific financial situation.
Here are the top ways to find debt relief in Texas:
This financial strategy helps you simplify your debts. Instead of a monthly payment plan, you'll take out a debt consolidation loan to repay your debts. You borrow money to pay off your other loans in a lump sum, then repay the consolidation loan, including interest, over a specified time period.
Debt consolidation loans may require a fee to originate the loan. It's also important to consider your credit score when you use this option. A stronger credit score is more likely to help you lock in a reasonable interest rate, making the process worth it to pay off debts.
Debt settlement is the process in which you negotiate with creditors and debt collectors to repay only a certain percentage of the money owed. Once you agree to a settlement, creditors basically cancel the rest of the debt. This is an effective option when you have financial hardship that makes you unable to pay the debt in full.
You can also work with a debt settlement company to negotiate on your behalf. Leveraging the expertise of an organization can improve your chances of reaching a settlement of up to 50% of your total balance (before fees).
Credit counseling involves working with a credit counseling agency to develop a personalized plan that addresses your financial struggles. Once you enroll in a program, you'll work with credit counselors certified and trained in areas such as consumer credit, budgeting, and money management. They can advise you on how to create a budget and plan to pay off your debts, offer financial education, and help you get copies of your credit reports.
Debt management programs (DMPs) help individuals organize payments through a debt relief organization. Once you enroll in a DMP, a credit counselor typically sets up a plan to pay each creditor, with consumers transferring funds monthly into a savings account managed by the organization.
For each transaction, you'll pay a monthly fee to the debt management company. However, credit counselors may negotiate reduced interest rates to lower payments.
These statistics encompass several types of debts, namely student loans, mortgages, credit card debt, auto loans, and personal loans. Home equity loans typically offer lower interest rates compared to other forms of borrowing, making them an attractive option for those seeking to alleviate financial burdens. Consumer debt statistics for Texas provide valuable insights into the habits of individuals within the state.
A Texas resident's average credit card balance is $8,316, the 12th highest in the nation.
In Texas, the average student loan debt amounts to $33,581. These statistics reveal the extent of student borrowing to finance education, impacting individuals' financial well-being and economic mobility.
With the average home in Texas costing $340,000 homeowners can easily rack up high mortgage payments. Soaring home prices and interest rates have made it difficult for first-time buyers to even finance a mortgage, leading to more debt.
According to Federal Reserve microeconomic data, Texas has the highest average auto loan debt of any state in the U.S. at $7,810 per person. This is far above the national average of $5,640.
Texas consumers carry an average consumer debt of $56,560. Consumer debt is made up of secured and unsecured loans including credit cards, mortgages, auto loans, and student loans. Secured debts are backed by collateral like your home or car, offering lower risk to lenders if you default on payments. Unsecured debts don’t use collateral and may come with higher interest rates since lenders risk more loaning the money.
According to the American Bankruptcy Institute, a total of 25,671 Texans filed for bankruptcy in 2023. This includes 12,484 cases filed for Chapter 7 and 11,723 for Chapter 13, the most common filings for individuals experiencing financial hardship.
In 2022, Texas’ median household income was $76,292, with a poverty rate of 13.7%.
In November of 2024, the unemployment rate for Texas sat at 4.2%. Texas has seen unemployment trending upward since June of 2024.
Texas has one of the lowest credit scores among all states, with an average score of 686.
Experian considers a credit score "good" if it falls between 670 to 739, so Texas residents still have a viable credit rating for securing loans from lenders.
The total amount of debt enrolled through our debt settlement company reached $138,738,482 for Texans in 2023, with the average part of debt enrolled per client at $23,599. Here at TurboDebt, we’ve helped a total of 20,794 Texas residents, with 5,879 individuals enrolled in our various debt relief programs.
Seeking relief from certain debts is a crucial step to impacting your financial stability, well-being, and, more importantly, your peace of mind. It's essential to understand which debt to prioritize among the myriad of debts. Listed below are some of the top debts you may want to resolve:
Credit debt is one of the most common and daunting types of debt, with Americans owing a collective total of $1.166 trillion.
TurboDebt offers Texas credit card debt relief for Lone Star residents struggling to pay off big balances. Our team helps Texans find relief options and assists them in working toward living a debt-free life.
Debt and money problems are some of the top reasons marriages end in divorce. The cost of getting a divorce can make your financial situation even worse.
Getting a divorce can cost an average of $15,000 per person, with individuals paying up to $100,000 in more complicated situations.
TurboDebt can help you manage your debt post-divorce by finding a relief program right for you.
The average small business owner has roughly $195,000 in business debt. The general rule of thumb is to keep your business debt within 30% of your business capital. Exceeding this number can lower your business’s credit score and give lenders the impression that you are irresponsible with your business’s funds.
In Texas, business debt relief programs can help you lower your business debt-to-capital ratio and help your business thrive again.
Medical debt is another difficult financial burden to carry. The Consumer Financial Protection Bureau found that 20% of U.S. households carry healthcare debt.
Settling your medical debt is tough, especially when you need to undergo expensive treatments or surgeries to live. However, TurboDebt can connect you with medical debt relief programs in Texas that can help you move toward a life free of medical debt.
Mortgage debt is the largest form of debt for most Americans. With interest rates rising and home prices skyrocketing, affording a home is more difficult than ever.
At TurboDebt, we offer support so Texas homeowners can find debt relief programs to overcome unsecured homeowner debts like personal loans for quick repairs or credit card balances from renovation projects.
Two out of every five retirees reported having nothing in their retirement savings accounts. Since most retirees have little to no savings, debt can follow Texas residents even after retirement.
Here at TurboDebt, we strive to help even those who are no longer in the workforce settle their debts and live the rest of their lives.
Becoming financially independent requires a strategic approach to help you manage finances. It requires your utmost dedication, internationality, and discipline. Here are steps you can take to achieve this goal:
Start by compiling a list of all your debts. The list should be comprehensive to help you navigate through your repayment plan. Record all the balances, interest rates, and minimum monthly payments of your accounts.
By partnering with a reputable debt company, you gain access to professional expertise and resources that can empower you to make informed decisions and take meaningful steps toward becoming debt-free.
A debt management plan is a debt relief option that combines all your current debts into one monthly payment with a lower interest rate. This can work for those who have a steady income and can make those payments over three to five years.
For example, if you have a combined balance of $14,000 on your credit cards, and you split that schedule over five to seven years each, that’s 60 payments. Each payment would be about $233.33 before interest. Including interest, payments would depend on the rate the card companies are charging you, with some over 20%! You can also try to negotiate a lower interest rate with each lender.
Debt management programs can also work for people who assist with managing and budgeting their money since this process creates a full payment schedule and plan that works within their income and other financial obligations.
Debt settlement involves negotiating with lenders to reduce your total debt balance. Texans can do this on their own or work with a reputable debt settlement company like TurboDebt.
After you reach a settlement, creditors agree to accept a lump-sum amount that's less than what you originally owed. A debt settlement company helps you set up a monthly payment plan that's affordable and helps you pay off your balance faster.
Filing for bankruptcy is another option for debt relief. If you're struggling to pay off debts, you can eliminate or reduce them by either liquidating your assets or create a repayment plan through the legal system.
You'll start by filing a petition with a bankruptcy court in your region of Texas. All cases are held in federal courts, as outlined in the U.S. Bankruptcy Code.
Individuals consumers typically file for Chapter 7 or Chapter 13 bankruptcy to liquidate assets, while businesses can also file for Chapter 11 to reorganize them under their business structure.
It's best to save bankruptcy as a last resort, as it negatively impacts your credit for up to 10 years. Contacting a bankruptcy attorney to understand your options is also recommended before you commit to the process.
There are several debt relief programs in Texas with adequate resources that you can use to navigate debt and financial hardship.
Listed below are key resources and financial assistance programs available in Texas:
- For Needy Families (TANF): This is a program run through the United States Department of Health and Human Services that provides cash payments to families for food, clothes, housing, and other living essentials.
- The Texas Repatriation Program: This program provides qualified U.S. citizens and their dependents in the form of a loan when they experience unexpected and unavoidable problems abroad. These citizens of Texas may have traveled from a foreign country suffering from an event that has made resources scarce, such as a pandemic or war.
Note: There are no new stimulus checks for Texas residents, and no news about them in the near future.
- Lone Star Card: The Lone Star Card offers an Electronic Benefits Transfer (EBT) card for Texas residents that provides food and cash through programs such as TANF and SNAP.
- Feeding Texas: The largest hunger relief organization in Texas, Feeding Texas provides food and resources from food banks to families and individuals in need.
- Supplemental Nutritional Assistance Program: SNAP helps people purchase food and garden seeds to plant food that has nutritional value.
- Texas Rising Star: A voluntary quality rating and improvement system (QRIS) program that works with childcare programs in Texas, Rising Star helps parents who want to find high-quality childcare facilities. Texas Rising Star works with childcare programs in the Texas Workforce Commission (TWC) and helps parents through their Texas Childcare Availability Portal find early learning programs with available spots.
- Childcare Services (CCS): This program under the TWC provides financial aid to families in need of childcare that meet income requirements. Parents can choose from licensed childcare centers, registered or licensed childcare homes, or relatives that are 18 years of age or older.
- Permanent Supportive Housing Program: This program helps those who are 18 or older find safe, affordable housing and learn the skills needed to live independently.
- Texas Rent Relief (TRR): Supported housing rental assistance program that helps those who are homeless or at risk of homelessness with temporary rent and utility assistance.
- Projects in Service in Transition from Homelessness: This transitional program helps those with mental illness or those struggling with substance abuse and their families recover from homelessness.
- Homeless Housing and Services Program (HHSP): HHSP provides funding to the nine largest cities in Texas to support those who are homeless or at risk of homelessness. They support programs for the construction, development, and procurement of housing in the following cities:
- Arlington
- Corpus Christi
- Fort Worth
- Plano
- Medical Transportation Program: The medical transportation program provides rides to qualified individuals to the doctor’s office, dentist’s office, hospital, drug store, or other medical buildings that provide covered health care services.
- American Public Transportation Association: This association provides links to transit agencies for cities, towns, and counties within the U.S. You can find bus, train, and ferry services.
- Senior Ride Programs: These services provide transportation for senior citizens who cannot transport themselves or go with a friend or family member.
With strategic planning, consultation, and negotiation, you can get your finances back under control. Now that you know about debt relief options and resources in your state, consider your options to start changing your financial situation.
While considering your debt-relief options, beware of scams. Those in debt are near the top of the list for scammers. If something seems too good to be true, it probably is.
TurboDebt is here to help you build a life without debt. We've already assisted thousands of Texas consumers through our debt relief services. Check out over 17,000 positive TurboDebt reviews on Google and Trustpilot to see what actual clients are saying.
Take the first step forward with a free debt relief consultation and let us help you find the best option for financial freedom.
Yes, Texas has effective great options for debt relief programs. While there are numerous options out there, consider TurboDebt’s high-rated service and service.
For debt relief, you must demonstrate that you are in financial hardship that is unlikely to end soon, that you are several months behind on payments, and that you owe a significant amount of money to lenders.
Different programs require varying amounts of debt for your credit report to a counselor for you to be considered for enrollment. For example, TurboDebt’s relief program requires that a credit report show you owe $10,000 or more.
Debt relief programs will usually charge 15-25% of the total amount of debt you owe to administer payments and hold on to funds.
For example, if you owe $8,000, and the debt relief program’s fee is 25%, then you would have to pay a fee of $2,000. Management and loan plans can have starting fees of anywhere from $0-$75. The monthly payments will be based on your remaining balances.
There are many debt relief options, and finding the one that is right for you takes a lot of research, time, and money to get started.
If you are willing to put in the effort and time it takes to work toward a worthless life, then you can find the right debt consolidation and relief program. TurboDebt helps you find the right debt management program for your financial situation, so you can finally take control of your finances and start building your wealth.
Take that bold step towards your financial freedom and relieve yourself of debts. Here at TurboDebt, our team offers personalized solutions to help you navigate through your debt repayment journey with confidence.
Whether you're struggling with credit card debt, personal loans, or other financial obligations, we have the expertise and resources to guide you every step of the way.
Don't let debt hold you back any longer! Contact us now to schedule a free consultation and explore how we can help you achieve your financial goals.
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