Let’s Escape Debt: Washington Debt Relief
12 MIN READ
Published March 29, 2023 | Updated November 10, 2023
In a Nutshell
It’s possible to reduce the amount of unsecured debt or other debt that you owe as a resident of Washington State. Currently, Washington residents have student loan debts, mortgage debts, medical debts, credit card debts, and more. The average consumer debt in Washington State is one of the highest rates in the entire country. However, it’s possible to reduce your debt. With the help of TurboDebt, you can find debt-relief solutions to regain your financial freedom.
Get Rid of Debt If You’re in Washington State
Living in debt makes everything hard, especially when you’re not sure how you can repay what you owe. In Washington State, far too many people are struggling to make it to the next paycheck, and if they are struggling to pay their bills, they’re surely struggling to pay their debt.
If you’re struggling with your debt amount, you don’t have to continue living in this cycle anymore. In this article, we’ll show you some pertinent information about debt and debt solutions in Washington State so you can feel confident in the fact that you’ll be able to get your financial future back on track.
Debt and Finance Statistics in Washington
Average Consumer Debt
Washington State residents have an average of $144,138 in consumer debt. Consumer debt takes the average credit card debt, mortgage balance, student loans, and auto loans to achieve one sum. With an average national consumer debt of $101,915, Washington residents carry a higher debt balance than many Americans.
Credit Card Debt
Outstanding credit card debt among U.S. residents rose to $986 billion in 2022. LIke many across the country, Washington State residents are currently trying to pay off outstanding balances to credit card companies. In fact, Washington State’s average household credit card debt sits at $5,560.
Although the pandemic allowed many Americans to pay off their credit card debt because of low spending and various stimulus checks, Washington residents are still struggling to pay down their credit card debts, including interest and late fees.
Auto Loan Debt
When you want to buy a new car but can’t afford to purchase it in full, you might take out a loan to pay for it. In 2021, Washington’s average auto loan balance was $21,922, a 6.9% change from the previous year. Many residents find it necessary to own a car in a place like Washington State, so this essential expense is costing Washingtonians a lot.
If you’re interested in buying a home, you’re probably going to have to take out a mortgage in order to purchase it. When it comes down to it, it’s expensive to live in Washington State. The average amount of debt that Washingtonians have taken out for mortgages is $333,158, the fourth highest in the country.
Student Loan Debt
With the cost of education continually rising in the United States, many Washington residents are dealing with student loan debt. Washington state residents carry an average of $35,728 in student loan debt. Around 53.4% of residents with student loan debts owe less than $20,000, which is close to the national average of 53.2%.
In quarter three of 2022, the national average for household debt was $101,915. This number is staggering. Specifically, in Washington State, the average household debt-to-income ratio is 1.6. This means that people’s debt is very close to their income in Washington state.
In 2022, 5,162 individuals filed for bankruptcy in the state. Although the number of total bankruptcies fell from the previous year, thousands of Washingtonians still filed for Chapter 7 and Chapter 13 bankruptcy, which affects individual credit scores.
Average Income and Employment
Currently, Washington State has a median household income of $82,400. However, 9.9% of people in Washington state are in poverty, showing many residents are struggling to pay off basic living expenses.
According to the Bureau of Labor Statistics, Washington’s unemployment rate was 4.6 in February of 2023, a full point above the national average of 3.6
Keeping a good credit score is important if you’re interested in improving your financial future. Currently, the average credit score in Washington state is 730. This number went up seven points when compared to the year before when the average was 723. This is an incredibly impressive median credit score, but there are still plenty of residents with lower scores who are interested in getting help to improve their credit reports.
It is important to avoid any scams at all costs. However, people do subject themselves to identity theft due to the increase in digital records and online data exchanges. In 2022, there were 11,877 reports of identity theft in Washington State.
Banking and Tax Info
Washington has a statewide sales tax rate that is sitting at 6.5%. On top of that, there is a maximum local sales tax, which is sitting at around 4%. When those two figures are considered, the average sales tax in Washington state is 9.29%.
How TurboDebt Helped Washington State Residents With Debt Relief Last Year
TurboDebt is committed to helping residents in Washington State. In 2022, we helped 2,943 total clients, with 1,213 clients currently enrolled in our debt relief programs. The amount of debt that is enrolled in our programs right now is $28,169,246.
On average, our enrolled clients carry around $23,223 in debt. No debt is too big for TurboDebt to help you with. In fact, we’ve saved our clients an average of 53.19% after enrolling in one of our programs.
Top Types of Debt to Get Relief From in Washington
Divorce is already upsetting and stressful, but when money is involved in your divorce, you might end up struggling even more. TurboDebt understands that divorce debt is tricky, so if you need more information about how to settle your divorce debt, reach out to us.
Did you start a business? Do you have debt because you started a business? If you answered yes to these two questions, then you’re a great candidate for TurboDebt. We can help you reduce the amount of business debt that you have and help you get your business finances back on track.
If you’re already experiencing health problems, it’s unfortunate to experience debt from the medical bills that come with it. However, there are debt relief options to help make your medical debt more manageable. TurboDebt knows that the average American has between $5,000 and $10,000 in medical debt. This debt doesn’t have to take over your life anymore.
Homeowners are in debt from mortgages, home repairs, and outstanding HELOC balances, but you can take control of this debt when you work with TurboDebt. Our experts can help you with strategic planning and advising to determine the best course for your financial future.
If you have debt and you’re retired, it can cause you unneeded stress in your post-work years. Regardless of your circumstances, TurboDebt can figure out a way to improve your debt, even if you’re in retirement.
Let’s Solve Things: Debt Relief Options in Washington
Debt Management Programs
Monthly debt payments can be difficult to handle, especially when you’re struggling to meet other bills and expenses. If you enroll in a debt management program, you can work to restructure your monthly payments, giving yourself a better chance of paying down your debts.
Debt Consolidation Loans
Debt consolidation loans are useful for Washingtonians with a lot of debt in multiple accounts. When you consolidate your debts, you’re reducing your interest to a single lender's rate and paying on one account every month.
Having only one payment can make paying down debts much more efficient since it’s best to have fewer and lower interest rates than multiple high interest rates.
If things have gotten out of control, you might feel like there’s no way out of your debts. However, if you opt for a settlement and work with a debt settlement company, you might be able to negotiate a lower payment. With a debt settlement, you’ll pay less than you would have originally.
Credit counselors take the time to understand your specific financial situation. Credit counseling agencies allow you to work one-on-one with a credit counselor to help you improve your credit and your overall financial situation. Certified credit counselors can also help you prepare a debt management plan to restructure your monthly payments.
Filing for bankruptcy is often a last resort, but it can help give you a fresh start. When you’re in bankruptcy, you ask to be discharged from your debts in order to start fresh. This happens through court proceedings where you are ordered to liquidate assets to pay creditors. In some cases, your debts are waived or forgiven by the court.
Sometimes, you might be able to have debts partially or completely eliminated or forgiven through a debt forgiveness program. These programs are typically offered through federal agencies at the state and national levels. You'll need to qualify for a debt forgiveness program based on factors like your income or profession.
When a loan is forgiven, you don’t have to pay it anymore. However, you may need to pay taxes on your forgiven debt as the IRS counts it as income.
Debt and Financial Hardship Resources
Temporary Assistance Programs
If you’re in need of assistance in Washington State, there are plenty of programs that might be right for you. For example, you might find that TANF, Housing and Essential Needs Referral Program, or Child Support services can help.
State Health and Human Services
Washington Healthplanfinder can help Washington residents find the health care plan that is right for them. Also, there are nonprofits and payment plans for health care. You might find that Medicaid and Medicare are good fits for residents who are eligible for them.
There are benefits that are in place for Washington residents through the Fair Start for Kids Act. Because of this, families who make up to $5139 a month are eligible for a stipend to help with child care copays. If you qualify for this, this might be a good way to get help paying for child care.
Shelters for the Homeless
There are many shelters for the homeless in Washington state, whether you live in Tacoma or another place. If you find yourself in need of a place to sleep, the Roots Young Adult Shelter, the Compass Blaine Center Emergency shelter, and the Open House Ministries Vancouver Washington Shelter are all good options.
Free Transportation Services
It’s important that you have access to transportation services, especially if you’re someone who is trying to get a job or go to work. It is possible to apply for reduced transit fares, so if you’re someone who is low-income, this program might help you afford transportation costs.
Find Debt Relief in Washington State with TurboDebt
TurboDebt is committed to helping people all over America, so if you’re in Washington State, you might be a great candidate for our services. For more information about TurboDebt. Contact us today for a free consultation!