Getting Rid of Debt: Virginia Debt Relief
15 MIN READ
Published March 30, 2023 | Updated November 10, 2023
In a Nutshell
Although it is hard to get out of debt, it is possible if you’re living in Virginia. Right now, the average amount of total consumer debt in Virginia is $122,273. However, if you’re ready to live a debt-free lifestyle, there are many ways that you can eliminate your debt down to nothing within as little as 24 months. TurboDebt is committed to helping people find personalized debt relief in Virginia. Whether you live in Norfolk, Virginia Beach, Chesapeake, or another area of Virginia, if you’re ready to get rid of debt, keep reading.
How Does Debt Relief Work in Virginia
If you’re in Virginia and have unsecured debt, then you’ve come to the right place. It can be stressful to try to reduce your debt on a minimum wage salary—or any salary—especially if you have to worry about other bills, like rent, electricity, food, and other expenses. If you’re trying to reduce your debt, there are ways to do so. We will discuss the ins and outs of debt relief in Virginia. By the end, you’ll know everything you need about debt relief options and different Virginia debt relief programs.
Debt and Finance Statistics in Virginia
Average Consumer Debt
The average consumer debt in Virginia is calculated by combining the average amount of debts someone has between their car loans, student loans, mortgages, and credit cards. In Virginia, the average consumer debt is $122,273. This puts Virginia in the top ten when it comes to the states with the most amount of consumer debt. If you’re in Virginia, then there’s a good chance that you have debts that you need to pay off. TurboDebt can help you find debt solutions.
Credit Card Debt
Credit card debt that is owed to borrowers and credit card companies is another kind of debt that is difficult to reduce. In Virginia, the average credit card debt is $6,969. When you’re tight on money, you might decide that you need to put things on your credit card in order to purchase the things that you need. However, when you do this, the late fees and interest add up if you don’t pay your bills upfront. So, many Virginians are in credit card debt.
Auto Loan Debt
Auto loan debt refers to the debt that is taken out to purchase a car. If you’re someone who cannot afford to pay for their car in full, then you probably had to take out an auto loan. In Virginia, the average amount of auto loan debt is $21,035. In 2021, the national average for the amount of auto loan debt that Americans have went above $20,000. This is the first time that this has happened in history, so the average amount of auto loan debt that Americans have keeps rising.
Mortgage debt is the amount of money that a person has taken out to finance their home. In Virginia, many people have mortgage debt if they own a home. Specifically, the average amount of money that is owed on a home is $242,397. This amount can be compared to the median price of a home in Virginia, which is $264,200. This means that there is around $21,803 between the median cost of a home in Virginia and the amount of money that is still owed on homes in Virginia.
Student Loan Debt
Student loan debt can be hard to escape, especially if you come from a low-income situation. However, many Virginians have student loan debt that they’re struggling to pay off because the average student loan debt in Virginia is $29,616. This means that many students graduate in Virginia with debts to pay.
Household debt is the amount each household owes when you consider all the avenues that could cause someone to go into debt. In Virginia, almost every household has some sort of debt. In fact, the average household debt in the country is $96,371. This is substantially more than it was in 2020 because, in that year, the average amount of household debt was $92,727.
Many people file for chapter 7 bankruptcy or chapter 13 bankruptcy. Although bankruptcy is usually a last resort if you’re in a financial problem, it is still very common, as 11,374 people filed for bankruptcy in Virginia in 2022.
Average Income and Employment
In Virginia, 10.6% of the population lives in poverty. The average household income is Virginia is $80,615.
Credit scores and your credit report are important if you’re looking to improve your financial situation. In order to be approved to purchase a home, rent an apartment, or get a car, you’ve got to get a good credit score. In Virginia, the average credit score is 721, exceeding the U.S. average of 714.
Many people find themselves getting their identity stolen or having someone try to steal their identity. In today’s digital world, it’s getting easier and more accessible for scammers to get ahold of your information, and in Virginia, there were 93,763 reports of identity theft.
Banking And Tax Info
Virginia has a sales tax rate that is around 5.3%. This number might vary depending on other factors.
How TurboDebt Helped Virginia Residents With Debt Relief Last Year
If you notice any of these kinds of debt, you might be a candidate for TurboDebt’s services. We are committed to helping people from Virginia, and we’ve seen 3,107 clients from the state. In 2022, we enrolled 1,080 clients, with an average debt from these enrolled clients totaling $23,066. We’ve saved these customers around 54.51 percent on their debts, so there’s no reason to put off calling TurboDebt, knowing statistics like these.
Top Types of Debt to Get Relief from in Virginia
Virginia has one of the highest divorce rates in the US. In 2021, the state reported 3.1 divorces per 1,000 total population living in the area. Getting a divorce in Virginia can set you off an average of $11,500 in attorney fees and other divorce costs.
Given how messy and expensive divorces are in Virginia, they can easily lead to a lot of debt. If you’ve experienced a divorce that left you in debt, then TurboDebt might be able to help.
While Virginia is a great state to start a business, it still has stringent tax laws, which include paying for both state tax and local taxes. What’s more, starting a business in Virginia requires filing fees of up to $100.
With the high costs of starting and running a business in Virginia, many business owners find themselves in a never-ending cycle of business debt. It can be hard to get out of this debt without professional help. At TurboDebt, we are experts in handling business debt, and we are passionate about helping Virginians get out of business debt.
Medical debt is incredibly prevalent in Virginia, so if you’re someone who is struggling with medical debt, you’re not alone. It is estimated that up to 50.4% of Virginians have medical debts totaling $2.6 billion, which is an average of $2,083 per person. TurboDebt is comprised of an expert team that can help you escape your medical debt.
It is not uncommon for homeowners in Virginia to have a lot of debt. Between mortgages and other fees that come with owning a home, it can be easy to rack up debt when you have your own house.
With an average mortgage debt of $260,540, Virginia has one of the highest mortgage debt levels in the country, making it easier to get into debt when looking to own a home. If you want to own a home in Virginia, talk to our experts at TurboDebt to help you make a good mortgage decision and escape homeowner debt.
Virginia is one of the best places to retire. However, not all places in Virginia are ideal for retirement. Towns like Arlington, which has a cost of living that is 64% higher than the national average, and Williamsburg, with a 16% cost of living higher than the national average, may not be the best places to live for most retirees.
If you’ve just retired and you still have a debt to pay off, it can be stressful. When it comes time to retire, you want to make sure that you’re financially ready for this next phase of your life. To get out of retirement debt, it’s best to call TurboDebt.
Options for Debt Relief Virginia
Debt Management Programs
Debt management programs are programs that help people pay off their debt in a more manageable and affordable manner. So, with a debt management program in Virginia, you might be able to reduce your monthly payments or lower interest rates on credit card debt.
As of March 2023, the average credit card interest was 20.05% across the U.S. Interest could even increase up to 30% if you missed two or more monthly payments.
Experts at TurboDebt can help you negotiate your credit card debt so you can pay your debt faster. Depending on the size of the debt, you should be debt free in 3 to 5 years, or even earlier if you make timely monthly payments.
Debt Consolidation Loans
It is true that it’s harder to pay off your debts when you owe multiple lenders. So, in order to make paying off your loans more achievable, consolidating your debt is the way to go. Debt consolidation loans allow you to combine multiple loans and make one monthly payment at a lower interest rate. You can find a way to achieve a reasonable debt negotiation when you use a debt consolidation loan. The best way to take advantage of big savings like this is to work with a company like ours.
With debt settlement programs, you’ll be able to find an agreed amount that you have to pay, which is less than the debts that you owe. Typically, lenders may accept 40% to 50% of the amount owed or more if you’re dealing with a debt collector.
For residents of Virginia, it is advisable to work with debt settlement companies to help you get a better settlement if you are not good at negotiation. Debt settlement is an ideal option for people who have huge debts and want to avoid filing for bankruptcy.
Credit counseling or nonprofit credit counseling is a way for you to meet with finance professionals who can help you figure out the best way to get out of debt. Think about credit counseling as one-on-one consultations that help you figure out a game plan to escape debts.
TurboDebt offers Virginia residents credit counseling services based on an individual’s financial situation. Our expert creditor counselor will give you a personalized debt and budget valuation to help you make informed decisions and get out of debt fast.
Bankruptcy occurs when you have no other options because the bankruptcy process has the potential to affect your credit score. When you’re in bankruptcy, you might have to figure out a repayment plan; you might have to liquidate some assets and more. There are many ways that bankruptcy unfolds.
For residents of Virginia, Bankruptcy offers a last resort to get your finances in order without losing some of your assets, including your home and car. On the contrary, it hurts your credit score and will remain on your report for 7 to 10 years.
Sometimes, a creditor can forgive part or all of your outstanding balance. Some debts that can be forgiven in Virginia include mortgage, student loan, tax debt, and medical debt.
There are special programs that Virginians can take advantage of for debt forgiveness. For instance, the offer in compromise allows residents to pay less tax than they owe. There are also student loan forgiveness programs available specific to the state of Virginia.
Debt and Financial Hardship Resources
Temporary Assistance Programs
If you’re someone who is experiencing hardships in Virginia because of the pandemic or another reason, then you might be a good candidate for a temporary assistance program. TANF, Temporary Assistance for Needy Families, is a program that helps families in need. You can receive resources to help you make ends meet through this program.
State Health and Human Services
In terms of healthcare, you can either receive Medicaid if you’re eligible or FAMIS, which is Virginia’s healthcare program that is sponsored by the state. This allows you to get doctor’s visits from qualified providers, medications, and more, for an affordable price.
It is important for people with children to get adequate child care for kids below school age because this allows you to work. In Virginia, you might qualify for the Child Care Subsidy Service.
Shelters for the Homeless
There are many different homeless shelters in Virginia that can provide you with different kinds of resources for different amounts of time. For example, you could stay at CARITAS Men’s Emergency Shelter, Richmond Friends of the Homeless, or HomeAgain.
Free Transportation Services
Virginia offers transportation services that are operated by the company ModivCare. If you have Medicaid, you’re eligible for these services. Accessibility matters when it comes to transportation.
Conclusion on Debt Relief in VA
Don’t worry, Virginians, if you’re in debt, you can find a way to escape your debts. Remember, no matter how desperate you are, do not fall for any scams. These scams can make your life more difficult than it is now, so be cautious and never give out your information. You’ve got to be diligent to avoid getting yourself into bad situations.
If you’re ready to take the next step towards having a liberated financial future, then you’re ready to contact TurboDebt. TurboDebt is committed to helping Virginians live debt free because everyone deserves to get rid of their debts. For more information about our services, contact us for a free consultation.