Indiana Resident Debt Relief

If you’re an Indiana resident dealing with credit card debt, we’re here to help. InCharge provides free credit counseling to residents in all 50 states, including Indiana.

During a credit counseling session, a certified counselor will review your budget and work with you to find the best path to debt relief. This may include a debt management program through InCharge.

Debt management programs allow us to work with your creditors to consolidate your debt, lower the interest rates on your credit cards, and create an affordable monthly payment plan. InCharge administers the program by collecting your payment each month and distributing it to your creditors. Credit score is not a factor in qualifying for a debt management program, so even if you have bad credit, we can still offer you a debt-relief option.

Debt Relief Options for Indiana Residents

When credit card bills get overwhelming, InCharge Debt Solutions is among Indiana’s top nonprofit debt counseling services.

InCharge is a nonprofit credit counseling agency that helps people repay their credit card debt. A member of the National Foundation for Credit Counseling, InCharge is a trusted leader who provides proven solutions for consolidating your debt.

Debt Management

InCharge Debt Solutions’ debt management program is a top option for Indiana residents experiencing problems paying their credit card bills. InCharge’s certified credit counselors can help customers consolidate credit card debt, lower interest rates and create affordable payment plans.

The debt management program helps customers get rid of credit card debt in 3-to-5 years. Clients will have to abide by a strict spending budget and make on-time payments every month, but they emerge debt free.

To enroll in this program, go online or contact InCharge by phone at 800-565-8953.

Other debt-relief options Indiana residents can consider include:

Debt Settlement

At first glance, the claim that debt settlement can “pay less than what you owe” is enticing. The reality is, many of these promises are misleading and can worsen your situation. Service fees, interest charges, and late fees eat up a large chunk of that “reduced” debt cost. That actual savings probably is closer to 25% with a notation “Paid less than was owed” on your credit report for 7 years.

Debt Consolidation Loans

Taking out a single, low-interest debt consolidation loan from a bank, credit union or online lender to eliminate multiple, high-interest credit card debts is a popular choice for consumers. However, you will need a good credit score (something above 680) to get a low interest rate. Also, the loan does not eliminate the debt, it shifts it from several sources to one source. The interest rate on debt consolidation loans should be considerably less than what you pay on a credit card debt, but rates can vary dramatically.

Bankruptcy

Bankruptcy is lauded by some as “a fresh start,” bankruptcy does allow a consumer to eliminate their credit card debt. However, it should be considered only as your last resort when all other options have failed. Bankruptcy delivers some short-term relief, but the long-term damage is cause for concern. Bankruptcy has a negative impact on credit reports for 7-10 years. That will result in issues in trying to qualify for a loan to purchase a new vehicle or a home before the year 2030. Before choosing the bankruptcy option, you must consider the future damage this could have on your credit going forward.

Credit Card Debt Forgiveness

Credit Card Forgiveness is a new program offered by a small group of nonprofit credit counseling agencies, including InCharge Debt Solutions. Choosing this option allows consumers to pay 50% to 60% of the debt they owe over a three-year period. The difference between this option and traditional debt settlement is that no negotiating is needed. Creditors agree in advance to forgive a portion of what is owed, as long as the consumer makes on-time payments.  Consumers can be free of credit card debt in 36 months.

Debt Collectors in Indiana

According to Indiana law, creditors or debt collectors can charge debtors for breach of unwritten contracts within six years after the cause of action accrues. This provision applies to credit card debts, rent, damages resulting from detention of personal property, and recovery of personal property.

The good news for those struggling is collectors must follow the Fair Debt Collection Practices Act, which was created to ensure that debt collectors cannot cross certain boundaries when collecting the debt.

Debt Collections Rights include debt collectors not being allowed to use profane language, contact you at work, call outside 8am-9pm, contact others about you, or reveal to others that you owe money.

Citizens of the Hoosier state are also protected from creditors if they are enrolled in a debt-relief program like debt management, debt settlement, credit card forgiveness or bankruptcy.

Indiana Statute of Limitations for Debt

The “Statute of Limitations” for credit card debt is a law limiting the amount of time lenders and collection agencies have to sue consumers for nonpayment. That time frame is set by each state and varies from 3-10 years.

In Indiana the statute of limitations for credit card debt is six years for written contracts, oral contracts, promissory notes, and open ended accounts. Indiana is one of the few states where all time limits for debt are the same across every different platform.

The purpose of a statute of limitations for credit card debt is to prevent creditors from taking consumers to court long after evidence of the debt has been discarded or disappeared.

Debt collectors can still contact you after the statute of limitations has expired, however, you can present a successful defense that the statute of limitations has expired, but you or a lawyer representing you, must show up for the court hearing.

Indiana Debt Resources

Assistance from debt problems is available in all Indiana cities and counties. There are government or nonprofit organizations that offer financial help to pay bills, whether it’s for rent or energy costs or childcare. Free medical care or legal support is even offered if certain qualifications are met.

Here are some of the services that are provided to those in Indiana seeking relief from debt:

Family and Social Services Administration: Designed to provide Indiana’s elderly and low-income families or individuals with food, childcare, and employment assistance.

Healthy Indiana Plan: Consumer driven health care program for low-income individuals between ages 19-64. Price for the program based upon family income in comparison with the federal poverty line.

Emergency Financial Assistance and Referrals in Indiana: Governmental aid, emergency rental assistance, food, funds for utilities, medications, and more can be provided by the Indiana Salvation Army.

Supplemental Nutrition Assistance Program: Provides food assistance to low or no income families. It is designed to raise the nutritional levels of low-income households.

Hoosier Rx: Offers financial assistance to seniors who struggle to pay for medications by paying Medicare part D premiums. It also helps persons who have a Medicare Advantage plan cover the cost of the prescription drug portion of coverage.

Temporary Assistance for Needy Families: The Temporary Assistance for Needy Families (TANF) program provides grant funds to provide families with financial assistance and related support services.

Indiana Foreclosure Help and Mortgage Assistance: The Indiana Attorney General’s office holds foreclosure prevention seminars to help people avoid losing their homes. Attendees learn how to communicate effectively with lenders and resources that are available to prepare for a settlement conference.

Housing, Eviction, and Homeless Prevention: The Indiana Housing and Community Development Agency helps low- and moderate-income families find sustainable housing options

Low Income Energy Assistance: The Low-Income Home Energy Assistance Program (LIHEAP) is a federal program that helps low income households pay for heating and/or cooling their homes. LIHEAP’s goal is to make home energy more affordable for households with older persons, people with disabilities or young children, and households with high energy bills compared to income.

Build, Learn, Grow: Indiana’s new Build, Learn, Grow scholarship fund helps families connect to the care and education children need. And for qualified families, the program can cover up to 80% of care costs for children up to age 12.  Through the Build, Learn, Grow scholarship fund, you can connect to the early care and education your child needs.

Indiana Debt Statistics

In many ways, Indiana residents are a reflection of the average United States citizen, which is considered a very high compliment. But, while residents have moderate debt when being compared to the rest of the US, they still find themselves carrying a large load.

Indiana’s current average household income is $68,221, well under the national average of $80,610 and 37th when compared to all 50 states.

Here are some of the other debt statistics for Indiana residents:

Consumer Debt: The average consumer debt for Indiana residents in 2023 was $79,349, a 2.1% increase from 2022. Indiana lands about $25,000 lower than the national average of $104,215.

Mortgage Debt: Indiana residents have a lot of success in the real estate market, having the fourth lowest mortgage debt in the nation with $147,555, nearly $100,000 below the national average.

Student Loan Debt: The average Indiana college graduate owes $33,281, which is still well below the national average of $37,853.

Auto Loan Debt: Car owners in Indiana hold an average of $21,813 in auto debt, just below the national average of $23,792.

Credit Card Debt: The average credit card debt in Indiana stands at $5,502, also keeping below the national average of $6,501.

Credit Scores for Indiana Residents: Credit scores for residents are on the upward slope with an average score of 713; two points lower than the national average of 715.

Get Professional Help with Your Debt and Improve Your Finances

Managing your credit card debt can be a daunting task without guidance. Incharge offers credit counseling which is a free service. Credit counseling includes looking at your credit report to verify the accuracy of all accounts. InCharge also provides educational materials to map out your financial future.

InCharge offers convenient online counseling: enter your income, assets, and debts, and you’ll receive a personalized debt relief solution – all without having to talk to a person. Apply online or call at 800-565-8953 to learn more about how to retake control of your finances.