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New York Debt Relief Guide
New York recently ranked ninth among America’s top 10 most expensive states. Every year, CNBC gives letter grades to each state based on costs of living as part of its “Top States for Business” study. The Empire State scored a D-minus on CNBC’s most recent test.
What may be considered good for business is expensive for average Americans. How expensive?
The average home price in Manhattan is $2,683,148. That may skew prices for the rest of New York, but realtor.com has the median home in suburban Long Island at $861,000.
“Housing and rent increases statewide have put residents in difficult situations, and new homebuyers are getting priced out,” says Gary Herman, President of Consolidated Credit. “Conditions in New York, especially New York City, are improving – but residents are still hurting.”
High housing costs leave many residents unable to make ends meet without credit cards. The latest data shows that the average New Yorker owes roughly $8,810 to credit card companies.
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Consumer debt in New York
This chart shows a breakdown of average consumer debt in New York, based on the latest Household Debt report from the Federal Reserve.
In 2024, 504,112 New Yorkers filed for bankruptcy – up more than 16% from the prior year.
Income and employment in New York
New York is not a right-to-work state, which means union dues are mandatory as a condition of employment. That’s even the case if the worker is not a union member. Pay rates are much higher in New York, with an average per capita income of $82,323, compared to $69,810 nationally.
The state job market is very competitive, especially in New York City. Unemployment in New York is around 4.4%, slightly higher than the national average.
With a relatively high unemployment rate and expensive living costs, making it in New York isn’t easy. If you’re in this situation, take steps to prioritize your bills and keep debt minimized.
Apply for unemployment benefits in New York »
Banking and taxes in New York
New Yorkers have a state income tax ranging from 4-8.2% to a state sales tax of 4%. New York City sales taxes are also 4% for a minimum combined sales tax rate of 8%. Local income taxes, such as the one in New York City, also start at 3.078%. The average sales tax rate in New York (including local taxes) runs about 8.25%. Unlike many other states, New York has no tax-free holidays or periods.
New York residents are slightly more likely to bank than the average American. The percentage of unbanked residents without a checking or savings account is just 5.6%.
New York housing market
The housing market in New York City has always been competitive, but housing is typically more affordable and plentiful outside the metro area.
Just outside Albany, New York, Bethlehem is one of the best places for first-time homebuyers.
New York does have a homestead exemption, which can range from $82,775 to $165,550 per person and is doubled for married couples.
- 54% of NY residents are homeowners
- Median mortgage payment: $2,991
- Median rent payment: $3,092
New York has an emergency rental assistance program if you face difficulties making rental payments. Additionally, New York has assistance for those having problems with their mortgage.
Consolidated Credit Helps New York Residents Reduce Their Total Credit Card Payments by Up to 50%
Retirement in New York
New York has the reputation of “If you can make it here, you can make it anywhere.” But that doesn’t apply to staying there. Retirees and many other citizens are moving out in record numbers. The reasons for the move include taxes, crime rates, and weather. New York ranks seventh among states with the highest income tax rate and sixth for the highest crime rate.
Retiring in New York is expensive. You’ll need an average of $1,400,000 to retire comfortably, but the average retirement savings is only $382,027. Other states offer a much lower tax structure, less expensive housing, and a better climate. The average New Yorker retires at age 64.
Average New York insurance premiums
New Yorkers have reasonable rates when they need to protect their homes and vehicles but more expensive health insurance. New York is a no-fault state for auto insurance. The average driver has an auto insurance premium of $1,511 per year – 42% higher than the national average.
Homeowner’s insurance rates are also reasonable. The average New Yorker’s homeowner’s insurance premium is $1,715 annually.
Health insurance premiums in New York are high compared to national averages. The annual premium is $8,413.
Helpful resources for New Yorkers facing hardship
Food insecurity
| City/Region | Food Bank | Phone Number | Address |
|---|---|---|---|
| Capital Region | Regional Food Bank of Northeastern New York | (518) 786-3691 | 965 Albany Shaker Rd., Latham, NY 12110 |
| Finger Lakes Region | Food Bank of Central New York | (315) 437-1899 | 7066 Interstate Island Road, Syracuse, NY 13209 |
| Long Island | Long Island Cares, Inc. | (631) 582-3663 | 10 Davids Drive, Hauppauge, NY 11788 |
| Long Island | Island Harvest | (516) 294-8528 | 126 Spagnoli Road, Melville, NY 11747 |
| New Jersey Metro | Community FoodBank of New Jersey | (908) 355-3663 | 31 Evans Terminal, Hillside, NJ 07205 |
| New Jersey Metro | Mercer Street Friends Food Bank | (609) 406-0503 | 824 Silvia Street, Ewing, NJ 08628 |
| New Jersey Metro | NORWESCAP Food Bank | (908) 454-4322 | 201 N. Broad Street, Phillipsburg, NJ 08865 |
| New York City | City Harvest | (646) 412-0600 | 6 East 32nd Street, 5th Fl., New York, NY 10016 |
| New York City | Food Bank For New York City | (718) 991-4300 | 355 Food Center Dr., New York, NY 10474 |
| New York Metro | Feeding Westchester | (914) 923-1100 | 200 Clearbrook Road, Elmsford, NY 10523 |
| Southern New York | Food Bank of the Southern Tier | (716) 852-1305 | 388 Upper Oakwood Avenue, Elmira, NY 14903 |
| Western New York | FeedMore Western New York, Inc. | (716) 852-1305 | 91 Holt Street, Buffalo, NY 14206 |
| Western New York | Foodlink, Inc. | (585) 328 3380 | 1999 Mt. Read Boulevard, Rochester, NY 14615 |
Veterans
As of publication time, New York was home to 676,000 Veterans. These resources are available to help Veterans who are facing unemployment, homelessness, and other hardships.
New York Department of Veterans’ Affairs
National crisis hotline: (800) 273-8255
Find Veterans’ services in your area »
Helpful employment resources for Veterans:
- CareerOneStop
- VeteranRecruiting.com
- Helmets to Hardhats
- Hiring Our Heroes
- My Next Move
- Warriors to Work
How Consolidated Credit helps New Yorkers find debt relief
This past year, Consolidated Credit provided free credit counseling to 13,495 New York residents. Of those, 3,375 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $13,762). The others received a free debt analysis and complementary budget evaluation, and they were directed to the right solution to get out of debt as quickly as possible.
We’d also like to congratulate the 1,152 New York residents who got debt-free last year with the help of Consolidated Credit!
Relief options to consider if you’re in debt in New York
If you have good credit and need to pay off credit card debt and other non-secured debts, a debt consolidation loan is an excellent option for you. By having good credit, you’ll get a low-interest rate for a loan that refinances all of your debt with one monthly payment. This will help you get out of debt faster, and you may wind up paying less each month. This is an excellent solution for New York State residents with high debt and a good credit score.
New York homeowners may qualify for a home equity loan or a home equity loan of credit, sometimes called a (HELOC). These types of loans use the equity in your home. Due to rapid home value increases, many residents have equity in their homes. The loan allows you to borrow against the equity in your home and pay off credit cards and other debt. This is not a step to take lightly because you could lose your home in foreclosure if you can’t make the payments. If you are considering borrowing against your home, call 1-800-435-2261 to speak with a HUD-certified housing counselor to make sure this is a safe option for you.
Consolidated Credit helps New York residents with credit counseling programs that identify the best way to get out of debt after considering their situations. New York residents can get a confidential debt and budget evaluation from a certified credit counselor. Afterward, the counselor will go over the available options and which course of action best meets a person’s needs and goals.
In New York, as in other states, it’s best to avoid bankruptcy. If you can afford to repay all that you owe to avoid credit damage but can’t do it on your own, a debt management program can help. You enroll through a credit counseling agency. The agency will work with your creditors to reduce or eliminate interest and work out a payment schedule. Qualifying New Yorkers can get out of debt in 36-60 payments, on average.
Another option for New York residents is debt settlement. With debt settlement, you settle your debt independently or with the help of a debt settlement company. In this program, you agree to pay your creditors a portion of what is owed. This will damage your credit rating because you are not paying on the terms you first agreed to. Late payments, which are often part of this program, will hurt your credit rating for seven years. Even with those negatives, this can be an excellent program for New York residents with overwhelming debt. It can help you avoid bankruptcy.
If you’re curious how we can help you, below are a few case studies from clients we’ve helped in New York. If you’re facing challenges with debt, call us at (844) 276-1544 to receive a free debt and budget evaluation from a certified credit counselor.
New Yorkers trust us with their debt. Contact us today and we can help you find the right solution for your debt!
