Debt Relief in Dallas, TX
14 MIN READ
Published August 31, 2023 | Updated November 10, 2023
- Dallas is one of the fastest-growing cities in the nation.
- Although economic growth continues, Dallas residents still earn far less in household income than the average Texan.
- Dallas residents carry some of the highest amounts of credit card debt in the country.
- TurboDebt provided debt relief in Dallas, enrolling over $20 million in outstanding debts from residents in 2022.
Overview of Debt in Dallas
With vibrant neighborhoods ranging from bustling modern to quaint and artsy, Dallas offers something for every resident. Whether you love or loathe the nickname, Big D is one of the fastest-growing cities in the U.S., with a population expansion of 10.4% from 2016 to 2022.
With all its growth, the Dallas metroplex area is still witnessing a volatile housing market. While median home prices declined slightly in July of 2023, active listings increased. However, with home prices over $400,000 and interest rates climbing ever higher, it’s a tough market for locals trying to compete with cash buyers from out of state.
The Dallas Metropolitan area continues to attract businesses with economic incentives and urban development programs. As more companies make their home in Big D or open new branches, job growth continues to expand.
Even with promising gains in employment and a relatively low cost of living in the Lone Star State, many Dallas residents still find it difficult to pay off their debts amid inflation and rising interest rates. Citizens of Big D are facing financial hardship from secured debt like mortgages and unsecured debts like student loans, credit card accounts, and medical bills.
They say everything’s bigger in Texas, but that doesn’t have to apply to your consumer debt balance. Last year, we provided debt relief help throughout The Lone Star State, enrolling more clients in Texas than any other state. Read on to learn more about your debt relief options in Dallas and how TurboDebt can help.
TurboDebt Helps Dallas Residents Get Out of Debt
If you’re a Dallas resident facing staggering amounts of unsecured debts like medical bills or credit card balances, you’re not alone. In 2022, TurboDebt served 148 clients in Dallas, enrolling over $3 million in debt. Our clients enrolled an average of $20,794.89 in debt, finding relief through our customized assistance and debt settlement plans.
With over 10k positive reviews from clients across the nation, we’re a trusted partner for debt relief. Contact us today to get started with a free consultation to learn how we can help you manage your outstanding debts.
Signs You May Need Dallas Debt Relief
Seeking assistance may be the most effective way to overcome outstanding debts. But how do you know when it’s time to seek financial help? Look for key indicators that signify it’s time to get relief.
First, determine your debt-to-income ratio. This is a percentage that describes the difference between the amount you take in before income taxes versus what you pay toward your credit cards, loans, and other debt each month. TurboDebt offers an in-depth guide and a DTI calculator tool to help you get started.
Creating a budget can also help you get a better picture of your spending habits. Consider using the 50/30/20 rule to manage your expenses. Set aside 50% of your after-tax or “take home” income for your needs, like groceries, utilities, and rent. Spend 30% on things you want, and use the remaining 20% to pay off debt and put money into savings.
If you’re having a hard time paying expenses or finding any extra money at the end of the month for savings, it’s likely you could benefit from debt relief. Here are a few more indicators:
- Facing financial hardship and struggling to pay essential bills like rent and utilities
- Lacking emergency funds
- Borrowing money to purchase items
- Opening multiple credit card accounts to spread out payments
Best Ways To Get Debt Relief in Dallas
Opting for debt settlement can help you clear debt faster and may even reduce the total amount you owe. You can speak with creditors yourself or work with a debt settlement organization that negotiates on your behalf to secure an agreement.
To complete a settlement with a debt relief company, you’ll make monthly payments into an account, building up a lump sum to pay off your debts. The organization then negotiates a payoff amount with your creditors, often for significantly less than what you owe. After paying fees to the debt settlement company for managing your account and arranging your deal, you could end up owing as little as half of your original balance.
Another way to manage debt is by seeking advice from a credit counseling agency. Credit counseling services are typically low-cost or even free in some cases. Credit counseling agencies provide you with financial education courses and debt management resources.
Once you sign on with an organization, you’re connected with a certified credit counselor who serves as a personal guide to help you discuss your finances and make a plan to overcome debt.
Debt Management Program
Many credit counseling organizations offer debt management programs to help pay off what you owe. Once you enroll, you’ll work together with the organization to create a debt management plan based on how much you can pay toward your debts each month.
Credit counseling organizations often work with your creditors to reduce interest rates and waive late fees. After you set up an account, you’ll start making monthly payments that the debt management program distributes to each of your creditors on your behalf.
Debt Consolidation Loans
If you owe balances on multiple accounts, sometimes it’s helpful to secure a debt consolidation loan. In this method, you take out a personal loan to cover the total of your accumulated debts and pay off all of your outstanding balances at once, using the money from your debt consolidation loan. Next, you’ll start making a single monthly payment toward your consolidation loan, which can help you better manage your total debt.
This option is most effective if your FICO credit score falls in the “Good” category because lenders are more likely to offer you lower interest rates on your loan. You’ll also need to look carefully at the terms of the loan to ensure your rate doesn’t change after a low introductory period.
In addition, the terms of the debt consolidation loan typically require you to close the credit card accounts and revolving lines of credit that you’re paying off. This way, the lender providing the consolidation loan is assured the balances on each of these accounts can’t grow back to the same unmanageable levels they reached before.
If you qualify for one of these specific programs, you may be eligible to have all or some of your debts forgiven. Federal agencies and local municipalities typically offer debt forgiveness programs based on your income level or other factors like your job.
For example, some teachers can earn student loan forgiveness after working for a certain number of years in an instructional position that has a particularly unique or compelling need for qualified educators. Federal workers may also qualify for debt forgiveness after meeting certain requirements.
If you can’t find any other way to relieve or manage your debts, bankruptcy can be an effective last resort. When you file for bankruptcy, the court decides how to pay off your creditors using your available assets or offers other solutions based on your financial situation.
However, bankruptcy also has a significant, long-term negative impact on your credit reports and your respective FICO credit scores, for up to 10 years. This will make it difficult to take on new loans or open new credit card accounts during this time.
Consult with a legal professional to learn more about filing for Chapter 7 or 13 bankruptcy, which are the most common proceedings for individuals in debt.
Top Types of Debt To Get Relief From in Dallas
Credit Card Debt
You don’t have to max out credit cards to quickly plunge into a cycle of credit card debt. In an inflationary economy, more Dallas residents are using credit cards to charge essential items like groceries and even utilities. In fact, the average Dallas resident carries over $14,000 in credit card debt.
Paying the minimum or only a portion of your balance each month can quickly plunge you into additional debt because your balances will not decrease but rather increase over time. Finding a way to break the cycle is critical.
Credit card companies charge some of the highest interest rates on outstanding balances, oftentimes with an Annual Percentage Rate (APR) as high as 25% or more, adding hundreds of dollars to the balance of unpaid credit card bills each and every month.
It is important to note that there is no federal law that limits the interest rate that credit card companies can charge on revolving balances or that banks can charge on consumer loans, except for active-duty military service members. Credit card interest rates are capped at 36% for active-duty military service members and their covered dependents under the Military Lending Act.
Break the cycle of credit card debt today! TurboDebt offers debt settlement options to help you eliminate credit card balances over $10,000.
To finalize a divorce, a judge decides how to divide debt and assets between spouses. Although community property is often shared 50-50, Texas divorce law stipulates the division of assets must be “just and right,” which may not always result in an even split.
After a divorce, you may be left with costly debts accumulated during your marriage, such as a mortgage or car loan. And if your former spouse doesn’t pay their portion of the debt, creditors can still demand payment from you. Speaking with a legal professional can help you understand more about this process.
At TurboDebt, we also offer strategic planning and advising services to assist you in regaining your financial freedom after a divorce.
Dallas offers help to both small business owners and corporate developers through incentives, including tax abatement and business development grants. However, the average business owner still takes on debt to finance a start-up or pump more funds into a company to encourage growth.
Let TurboDebt help you manage debt from business investments so you can expand your operations and free your personal finances. We offer personalized assistance in finding the best solution to overcome your business debts.
Many Dallas County residents struggle to pay healthcare bills, with 19% of the area’s medical debt in collections. Those without health insurance can face staggering costs for anything from routine checkups to unexpected procedures. Even with insurance, bills can quickly add up, especially for anyone paying to treat a chronic illness or undergo emergency medical care.
TurboDebt offers help for outstanding medical costs. Consider a debt settlement or any of our financial planning services to start on the path toward a debt-free future.
Dallas residents taking on a new mortgage face increasing interest rates and rising home prices, pushing homeowner debt to historic highs. For example, taking out a Home Equity Line of Credit costs you 9% interest or higher from the Bank of Texas. Even long-time homeowners making repairs are facing inflated prices for services.
Don’t get stuck in debt from owning or maintaining a home. Take advantage of TurboDebt’s customized plans to escape from overwhelming debts.
Retirement means living on a fixed income in the Lone Star State. Although Dallas offers a relatively low cost of living compared to other big cities, residents can still rack up debt from unexpected expenses not covered by pensions or other incoming funds.
Seeking relief from a trusted source like TurboDebt may be an effective solution for retired Dallas residents struggling with outstanding balances.
Dallas Debt and Financial Data
Consumer debt gives an overall picture of indebtedness in a region, including data for auto and student loans and mortgage and credit card debt. While Texans carry an average consumer debt of $49,720.
Looking at data from each category provides a closer look at the specific debts Dallas residents owe. Here are some stats on consumer debt in Dallas, according to WalletHub:
- Credit Card Debt: $14,451
- Auto Loan Debt: $17,052
- Mortgage Debt: $164,625
- Student Loan Debt: $20,511
The Dallas/Fort Worth area encompasses a majority of the North Texas court system, where 6,376 individuals filed for bankruptcy as of June 2023.
Although in decline for some time, the nation has seen a 17% increase in all bankruptcy filings from the previous year, indicating more consumers are struggling with outstanding debts.
Average Income and Employment
Dallas’s economy expanded over the summer with positive indications of job growth and increased wages. Unemployment was down to 3.4% in June of 2023, with construction and mining, information, and other service jobs showing the biggest growth. Average hourly earnings were up to $34.24 in the same period.
However, even with positive growth, Dallas residents earned an average household income of $58,231, well below the state average of over $67,321, according to the latest census data. This describes what income earners in each family contribute.
In 2022, Dallas earned a median credit score of 663, falling into the “Fair” category of FICO scores. Several factors impact credit ratings for Dallas residents, including the length and data of your credit history and how much debt you owe.
Texas Homestead Laws
According to Brad Reichert, Founder and Managing Director of Reichert Asset Management LLC, Texas has special homestead laws in place that date back as far as the Civil War.
“Texas homestead protection laws help prevent people from becoming homeless in the event of a foreclosure or change in economic circumstances,” Reichert explains. “These laws protect qualifying real property from forced sale by general creditors, and courts have interpreted the laws very broadly, in most cases,” Reichert adds.
Texas also offers a homestead exemption, offering tax deductions to homeowners and limiting increases in property tax rates each year, including properties in Dallas.
Dallas Residents Can Find Relief with TurboDebt
Finding debt relief in Dallas, Texas, doesn’t have to be hard. TurboDebt is here to help you take an in-depth look at your personal financial situation and find the best solution to manage and pay off your debts. We’ve already helped hundreds of Dallas residents, each carrying thousands of dollars in debt.
Contact us today for a free consultation to start a journey toward debt-free living in your corner of the Lone Star State.