U.S. Virgin Islands Debt Relief Programs in 2025

How Does Debt Relief Work in the U.S. Virgin Islands?

Debt relief in the U.S. Virgin Islands works through efforts of the local government, the U.S. government, and private initiatives.

Certain government relief programs, along with non-profit and for-profit debt relief companies, provide assistance for those living and working on the islands of St. John, St. Thomas, and St. Croix.

These organizations offer various debt relief programs in the U.S. Virgin Islands through personalized debt payment options.

Economic Overview of the U.S. Virgin Islands

The U.S. Virgin Islands has a small population of just over 87,000. These northern Mariana Islands are an incorporated territory of the U.S. located in the Caribbean Sea.

With millions of visitors annually, tourism and trade are the primary drivers of the economy, employing half of the labor force and contributing the largest share to the GDP.

The average household income is $40,408, which is lower than the national average in the United States of $67,000.

Major recent economic setbacks include the closure of the Hovensa oil refinery, hurricanes Irma and Maria in 2017, and the COVID-19 pandemic in 2020.

All of these have contributed to higher public and personal debt, slowed economic development, and financial hardship.

Debt and Finance Statistics in the U.S. Virgin Islands

The U.S. Virgin Islands has a small population and is sometimes excluded from national surveys and reports. Therefore, some vital data is lacking.

However, based on our key findings, here are the best available details on different aspects of public debt and finance in the U.S. Virgin Islands:

Student Loan Debt

Many students receive financial aid through grants and scholarships from the local and federal government, college institutions, and other private organizations.

On average, a first-year University of the Virgin Islands student may receive an average of $9,258 in financial aid. While students may receive financial help, graduates still owe an average of $16,282 in student loans.

Mortgage Debt

The latest data from the 2020 U.S. Census shows a median home price of $290,558 in the Virgin Islands, which is higher than on the U.S. mainland and in Puerto Rico.

On the territory itself, houses are most expensive in St. John’s and lower-priced in St. Croix, with St. Thomas landing in the middle.

Rising interest rates and inflation-elevated construction costs have left many residents struggling to afford homes.

Bankruptcy

Bankruptcies are filed in the District Court of the Virgin Islands with an appeal to the U.S. Court of Appeals of the Third Circuit.

In 2024, the U.S. Virgin Islands filed 15 bankruptcy cases (PDF). Although this number is small, 2023 saw a 9.5% increase from the previous year, indicating that more residents are facing financial hardship and need help to discharge or reorganize their debts.

Average Income and Employment

Employees in the Virgin Islands earn an average hourly wage of $23.01. Jobs in the government, hospitality, and trade sectors employ the most residents.

According to U.S. Census Data, the Virgin Islands saw fluctuating employment levels in 2024.

Credit Scores

The U.S. Virgin Islands has an average credit score of 676, which is only 6 points above the rating of 'good' and below the national average.

FICO calculates credit scores based on several historical factors to determine credit risk. The higher the score, the more likely you are to get a loan at favorable terms, including lower interest rates.

With rates soaring post-pandemic, a good credit score can potentially lower your debt risk. However, this number can easily slip into the “fair” category, putting more residents at risk of having lower credit scores.

Types of Debt To Get Relief From in the USVI

Debt relief in the U.S. Virgin Islands offers tailored programs, helping with the following top types of debt:

Credit Card Debt

Credit card debt in the U.S. Virgin Islands includes principal, interest, and penalties for various infractions. The interest depends partly on your credit report and may be as high as 30% because it’s considered an unsecured debt.

Due to low incomes and frequent economic disruptions caused by natural disasters, delinquency on credit cards is not uncommon among residents.

Divorce Debt

A divorce settlement is one of the leading causes of debt in the U.S. Virgin Islands. Coupled with the legal costs, settling marriage debts and the expenses of starting over can put personal finances in disarray.

Business Debt

Sometimes, businesses in the Virgin Islands struggle to avoid accumulating crushing debt. Aside from paying wages, purchasing inventory, and financing growth, business owners also contend with the after-effects of disasters like hurricanes, which frequently cross the islands.

Many small businesses cannot handle these incidents without incurring debt and may risk closure due to a lack of funds.

Medical Debt

Many of the Virgin Islands' low-income earners face trouble affording healthcare. Even among those employed, 29% are without health insurance coverage.

Homeowner Debt

Homes typically cost more in the Virgin Islands than in the mainland U.S. Aside from high mortgage costs, many homeowners are also victims of destructive hurricanes. As a result, many homeowners must contend with repair costs in addition to their regular mortgage payments.

Local and federal interventions provide some relief, but often, this is inadequate. Sometimes, the only alternative to losing a home is taking on more loans, making homeowner debt one of the most significant portions of personal debt.

Retirement Debt

Retirement debt can be particularly challenging to overcome for individuals living on a fixed income. When you retire, your income typically decreases, while living costs increase, especially for medical expenses.

Options for Debt Relief in the U.S. Virgin Islands

Here are some of the best and most effective debt relief options available to residents of the U.S. Virgin Islands:

Credit Counseling

Effective debt relief can begin with credit counseling. It typically begins by evaluating your financial situation before determining how to proceed.

A credit counseling company helps you work out a financial plan that covers your financial obligations with as little debt as possible.

Most of these organizations are non-profit and provide debt counseling with qualified personal finance professionals who will train you in managing your finances.

Debt Management

Debt delinquency can happen due to an inability to track multiple payments each month. Numerous payments may also expose you to several different interest rates, which may be more expensive to pay off.

The most effective form of debt management helps you renegotiate with your creditors to consolidate your debts so that you can make one monthly payment at a reduced interest rate. 

With a debt management program, you’ll need to commit to making the monthly payment and refrain from taking on additional debt. This option is ideal for those overwhelmed by their many creditors who can benefit from a single monthly payment plan.

Debt Consolidation

Like debt management, debt consolidation is ideal for those with many creditors. This solution involves taking out a single large loan to pay off multiple smaller loans, which may help you avoid the costs associated with delinquency.

Consolidated loans may reduce what you’re paying in interest, helping you pay off your debt for less. Some lending institutions even grant a grace period before you begin repaying or an intro period with 0% interest.

Debt Settlement

One of the most aggressive ways to pay off large sums of debt is through a settlement. You can do this on your own or enlist the help of an expert debt settlement company that can negotiate with your creditors to settle for less than you owe them.

Many creditors are willing to forgive up to 50% of your debt rather than risk you defaulting or filing for bankruptcy.

Bankruptcy

Bankruptcy gives U.S. Virgin Islands residents a chance to start over again. During bankruptcy proceedings, the court may determine that you have no reasonable way to repay your debts, thus forgiving them. Or, they may work out a payment plan by selling your assets.

It’s also possible to apply to a court to restructure your debts so that you can pay them off without losing your property. In this case, you won’t be discharged from your debts until you pay off all you owe.

Debt Forgiveness

A creditor may choose to forgive part or the whole of a debt if they deem it worthy. Debts you can apply to your creditor to forgive include medical and homeowner debt, especially after a catastrophic event.

Although debt forgiveness programs are rare, you may qualify for assistance if you work for the government or meet certain other stringent requirements based on your job or income. 

Financial Hardship Resources in the U.S. Virgin Islands

Here are some resources that can help you through financial hardship in the U.S. Virgin Islands:

Temporary Assistance Programs

The U.S. Virgin Islands Temporary Assistance to Needy Families (TANF) program is run by the Department of Human Services. The program aims to alleviate residents' financial difficulties by providing employment opportunities or cash payments. Recipients can use the funds to cover expenses such as food, housing, and clothing.

Virgin Islanders may also benefit from the Supplemental Nutrition Assistance Program (SNAP) sponsored by the federal government. SNAP benefits can only be used to buy designated food products.

State Health and Human Services

The Departments of Human Services and Health run programs to alleviate financial hardship occasioned by health issues. One of the main programs, Medicaid, is a comprehensive medical coverage that the federal government provides to low-income earners in the Virgin Islands. 

The State Pharmacy Assisted Program (SPAP) helps residents afford drugs they wouldn't otherwise.

Water is also a cause for concern in the Virgin Islands. Without government intervention, many low-income citizens wouldn't be able to afford it. The Low Income Water Assistance helps the less fortunate afford clean water.

Child Care

Both the federal and U.S. Virgin Islands governments provide specific relief services for those with kids. Having dependent minors qualifies you for higher benefits or prioritization.

The Department of Health Services offers child-specific medical care at no cost or at subsidized rates. Other than Medicaid, children also have access to the Children’s Health Insurance Program (CHIP) to extend their medical coverage.

Shelters for the Homeless

The U.S. Virgin Islands Housing Finance Authority operates emergency houses that can be used by people who have had to leave their homes suddenly. To qualify, you need to be a victim of domestic violence, be able to pay for utilities, and be represented by a service provider.

Several other private charity organizations provide help to homeless residents across the islands through shelters and emergency support systems.

Free Transportation Services

VITRAN operates three bus routes in the U.S. Virgin Islands at an affordable fare of $1, discounted to $0.75 for students with a valid ID and seniors. Persons with disabilities are eligible to ride for free.

Find Debt Relief in the U.S. Virgin Islands

Debt relief in the Virgin Islands begins with a reputable debt relief company. It’s essential to do your due diligence to avoid scams or poorly rated options. Check reviews from trusted sources and investigate the company’s website to understand how their services and fees work.

As one of the best-rated debt relief companies serving the U.S. Virgin Islands, TurboDebt® has a proven track record of success helping individuals work towards a debt-free life.

Contact us today to schedule a free consultation. Together, we can assess your debt situation to determine how much we can help you save with our effective debt relief services.