Debt Relief in Fort Worth, TX
14 MIN READ
Published September 18, 2023 | Updated November 10, 2023
Take a look at these quick stats regarding debt relief in Fort Worth:
- Fort Worth’s median credit score ranks as one of the lowest in the country.
- Fort Worth faces growing unemployment rates, reaching a new peak in July of 2023.
- 13% of Fort Worth residents live in poverty, making debt relief options essential.
- TurboDebt enrolled over $2 million in client debt from Fort Worth residents in 2022.
Debt Landscape in Fort Worth
Featuring attractions like the world’s only twice-a-day cattle drive and the modern architecture of Johnson’s water gardens, it’s no wonder Fort Worth is known as the Unexpected City. Residents enjoy a mix of rural beauty and bustling city life close to the sister metropolis of Dallas.
The seat of Tarrant County, Fort Worth, boasts a population of almost a million people, growing 4.1% from 2020 to 2022.
Industries like transportation and healthcare fuel the economy, with a focus on tech growth in each sector. In 2022, the University of North Texas Health Science Center at Fort Worth created the first physical health accelerator for tech startups in the industry. Another innovation, Bell Nexus and Uber’s Elevate Air Taxi, is based in Cowtown with hopes of revolutionizing the daily commute.
Despite the promise of rising technology, Fort Worth is still a site of economic hardship for many, with 13% of residents living in poverty. Cowtown has also seen a growing unemployment rate throughout 2023, outpacing the nation. Many residents face rising consumer debt from mortgages, credit card balances, and student or auto loans.
Finding debt relief options in Fort Worth can be the key to regaining your financial stability. With several debt relief programs to choose from, doing a little research before you pick ensures you get the assistance that’s right for your situation. Read on to learn more about the ways you can manage and eliminate your debts and get back to building wealth.
TurboDebt Helps Fort Worth Residents Get Out of Debt
If you’re struggling to pay off big balances, join the others from Fort Worth who made a plan and conquered their debts. Last year, TurboDebt enrolled a total of $2,585,553 in debt from Fort Worth residents. Our average client carried over $22,000 in consumer debt from items like credit cards and medical bills.
We’ve helped with Texas debt relief in cities throughout the Lone Star State, enrolling more debt here than any other place in the nation. Contact TurboDebt today to start a free consultation on your debt.
Signs You May Need Debt Relief Help
Although financial difficulties can look different for every individual, there are some clear signs that prove it’s time to get help with your debts. The first factor to look at is your debt-to-income ratio. If you consistently owe more in debt than you earn each month, make a plan to decrease your spending and pay off your outstanding balances.
You can start by creating a budget using the 50/30/20 rule. Plan to spend 50% of your income on needs, 30% on wants, and 20% on debt and savings. Any money you can put aside to pay off debt or into a savings account prepares you for a better financial future.
Here are some other signs that you may need help with debt relief:
- You can’t pay off your credit card balance each month
- You consistently make late payments on credit accounts
- You don’t have any emergency savings
- You borrow money to make purchases for things you want
- You max out multiple credit cards
It’s never too late to get help through a debt relief organization. TurboDebt is a trusted source to assist you with your unsecured debts. Keep reading to find out more about the ways you can get relief from us or another source.
Best Ways To Get Debt Relief in Fort Worth, TX
Read on to learn more about the top ways to get debt relief in Fort Worth.
Debt settlement offers a way to reduce what you owe by negotiating with creditors. You can do this on your own or work with a debt settlement company that uses in-house experts to negotiate a lower debt payoff on your behalf. This type of debt relief program can also help you pay off large amounts of debt faster. Once the debt is settled, you’ll pay the required fees to the organization and start fresh financially.
For example, let’s say you owe $15,000 in credit card debt on a travel rewards card. After enrolling your debt with a debt settlement organization, you’ll set up a savings account and start making monthly payments toward your debts. The company then negotiates with your creditors and arranges a new payoff amount of $8,000, almost half of what you originally owed.
Last year, TurboDebt saved Texans an average of 54% of their total debt enrolled before fees, making settlement an effective choice for debt relief in Fort Worth.
Another option to help you understand and manage your financial situation is credit counseling. Working with a nonprofit or private credit counseling agency gives you access to financial education resources and connects you with a certified credit counselor who acts as your personal advisor. These experts can assist you in setting up a debt management plan.
Debt Management Program
Often administered through a credit counseling agency, debt management programs help you set up an affordable monthly payment toward your outstanding balances. When you create a debt management plan, credit counselors can often negotiate for lower interest rates and reduced fees.
As long as you maintain your monthly payments through the organization, debt management programs can save you money in interest and late fees. However, once you miss a payment, you could lose all your benefits, so it’s important to commit to regular payments once you start a plan.
Debt Consolidation Loans
A debt consolidation loan allows you to basically reorganize your debt into a single monthly payment. When you choose this debt relief option, you’ll first need to qualify for a loan big enough to cover all of your existing debt.
The higher your credit score, the more likely you are to secure a loan at a lower interest rate, which can significantly reduce your overall debt burden. It’s important to look carefully at the terms of your loan, as some offer low interest for an introductory period, then increase dramatically after that time is up.
Once you secure a debt consolidation loan, you’ll use it to pay off all your existing debts, then focus on making a single monthly payment towards your new loan.
If you qualify for a specific program, you may receive partial or complete debt forgiveness based on your needs and financial situation. Debt forgiveness programs may eliminate debt from student loans, mortgages, or other personal debts.
Most forgiveness programs are offered through the federal government at the state or national level. Many are based on your area of expertise. For example, teachers may qualify for student loan forgiveness based on where and how long they’ve taught.
It’s important to note that any amount forgiven is considered taxable as ordinary income.
If you can find no other way to relieve your debt, bankruptcy is your last option. This process involves working with a legal professional and petitioning the court system to either relieve or reorganize your debt.
When you declare bankruptcy, the court decides how to use your assets to repay your creditors. They may create a payment plan based on what you can afford to pay or require you to sell off assets to fulfill your debts. They may also eliminate part of your debt.
While using bankruptcy for debt relief can help you start fresh financially, it also negatively impacts your credit history for up to ten years, or in some cases, even longer. It’s a good idea to seek legal advice from a law firm before you pursue bankruptcy.
Pick the Right Debt Relief Option
It’s important to consider your unique financial situation and how much you can put toward paying your debt each month. Working with a debt relief organization can help you manage your situation and create a plan to consistently pay down your outstanding balances.
Brad Reichert, financial expert and Founder and Managing Director of Reichert Asset Management LLC, offers these suggestions when choosing an organization to work with:
“Check if the organization is accredited by reputable industry associations such as the National Foundation for Credit Counseling (NFCC) or the American Fair Credit Council (AFCC),” Reichert shared. “Membership in these organizations often indicates a commitment to ethical standards. Verify that the organization is licensed to provide debt relief services in Texas, as required by state law.”
Whatever option you choose, make sure you fully commit to a plan to receive the maximum benefits and pay off your debt faster.
Top Types of Debt To Get Relief From in Fort Worth
Credit Card Debt
Credit card debt can quickly become an endless cycle of payments that get bigger each month. Once you carry a balance, you’ll continue to pay interest on what you can’t pay off, sometimes with rates as high as 25%. Add late fees to that, and you’re likely in a tough spot.
If you’re carrying $10,000 or more in unpaid balances, let TurboDebt help you access credit card debt relief in Fort Worth. We offer debt settlement programs tailored to your unique financial situation so you can overcome the burden of credit card debts.
Aside from the emotional burden, going through a divorce is a costly process. Fort Worth residents are likely to rack up over $12,000 in fees on average. Debts you carry with your spouse are often split, but if your ex refuses or somehow neglects to pay, creditors can still pursue you for repayment.
Don’t let divorce debt ruin your finances. Contact our experts at TurboDebt for a free consultation to learn how we can help you get a fresh financial start.
Starting a business can inevitably lead to debt as you try to operate and expand. Even using Fort Worth’s business incentives may not be enough to keep you out of debt as you take out personal loans to cover expenses.
TurboDebt’s got small business owners covered. If you’ve racked up plenty of debts starting or maintaining your business, we offer advising and strategic planning services to help you get your finances in order.
Out of Fort Worth’s total population, 20.6% of residents don’t have medical insurance. With this many uninsured living in the city, medical bills can quickly become a financial burden. Add to this the rising cost of healthcare services, and medical debt is a growing source of debt for many residents.
TurboDebt can help you manage unsecured debt from medical bills. Get started on a debt relief plan today with a free consultation from our expert team.
Mortgages are the highest contributor to consumer debt, and with interest rates continuing to rise, home loans are becoming more costly for borrowers. Homeowners also face rising costs for maintenance and remodeling, adding more debt on top of mortgage payments.
Don’t get stuck in homeowner debt as big as the Lone Star State. TurboDebt is here to assist you in finding a solution.
Fort Worth residents living on a fixed income can find it hard to overcome debt from unexpected circumstances. Even if you save enough for a comfortable retirement, debts can pile up from healthcare costs, home maintenance, or personal expenses.
Let the experts at TurboDebt offer you options to deal with your outstanding balances. Contact us for a free consultation.
Fort Worth Debt and Finance Statistics
The data below gives you an overview of the financial health of Fort Worth’s residents:
Consumer debt takes credit card, mortgage, student loan, and auto loan debt into account. Looking at each of these types of debt gives you an overall picture of a region’s financial health. Analyzing how easily consumers pay off this debt also helps you understand a city or country’s economic state.
In Fort Worth and throughout the rest of Tarrant County, residents carry an average of $1,913 in debt collections, hundreds of dollars more than neighboring Dallas County.
Here’s a look at some specific data about Fort Worth’s consumer debt according to WalletHub studies:
- Credit Card Debt: $2,855
- Auto Loan Debt:$18,384
- Mortgage Debt:$140,670
- Student Loan Debt: $19,455
Fort Worth residents carry a dismal median credit score of 524, falling far below the national average. Based on the FICO credit rating system, this number falls into the “Poor” category and ranks in the lowest percentile of city credit ratings in the U.S.
With a low credit score like this, Fort Worth residents may find it difficult to take out new loans or open credit accounts.
The Fort Worth area is often ranked as one of the most desirable areas to move to, with its mix of city living and natural spaces. Home values are high but still realistic for such a desirable place to live. In July of 2023, the median home price in Fort Worth was $329,450.
Including Fort Worth, there were 7,556 bankruptcy filings in Texas’s Northern Court System as of August 2023. This is an increase from just over 6,000 the previous year, an indication of the economic hardship many Fort Worth residents are facing.
Average Income and Employment
Although the Fort Worth area showed positive growth as payroll employment increased, unemployment also rose as more individuals entered the market. In July of 2023, unemployment rose to 4.2% in the Dallas-Fort Worth metro area.
Those employed in Fort Worth earned an hourly average of $34.92, with a median household income of $67,927.
Find Debt Relief in Fort Worth With TurboDebt
Living in Cowtown doesn’t mean you have to get stuck with a herd of debt. It only takes a few minutes to start a free consultation with the experts at TurboDebt. We’ve helped plenty of Fort Worth residents find debt relief through personalized solutions and advising services. Contact us today to start your journey toward a debt-free life!