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Indiana Debt Relief Guide

Boasting one of the lowest unemployment rates in the Midwest (4.5%), the “Hoosier State” has excelled at creating new employment opportunities for residents. The Indiana SBDC Agribusiness Initiative aims to help farmers grow and expand their businesses, which contributes $31.2 billion to the state’s economy every year. Though this has unfortunately not helped with the real estate market, which has seen a 17.5% jump in sale price since the last year.

“Inflation has had a big impact on Indiana’s economy,” says Gary Herman, President of Consolidated Credit. “Consumer inflation has jumped by 7.9%, the sharpest spike since 1982. This could be indicative of higher prices to come, so sticking to a budget and minimizing things like credit card debt are crucial, especially for anyone looking to buy a home.”

Consolidated Credit Helps Indiana Residents Reduce Their Total Credit Card Payments by Up to 50%

Consumer Debt in Indiana

This chart shows a breakdown of average consumer debt in Indiana, based on the latest report of Household Debt report from the Federal Reserve.

In 2020, 16,782 Hoosiers filed for bankruptcy compared to the previous year’s filing total of 23,332.

Income and employment in Indiana

The per capita (average per person) income in Indiana is $51,340. That’s lower than the national average of $59,729. Indiana has a median income of $56,308. And the minimum wage is equal to the federal minimum wage of $7.25 per hour.

Indiana is a right-to-work state, wherein employers, labor organizations, or any persons cannot require an individual to become or remain a member of a labor organization. This includes paying dues, fees, or assessments as a condition of employment, new or continued. So, you can’t get rejected on a job application or fired based on your union membership status. 

In addition, Indiana is an employment-at-will state. Essentially, an employer can terminate employment at any given moment, for any given reason. The same can also be said for employees. You can quit at any time, without giving a reason.

These two things together give Indiana residents career choice and flexibility. However, they also mean less job security. So, it’s important to maintain good emergency savings in case of unemployment.

Indiana’s unemployment rate has bounced back since the COVID-19 pandemic, sitting at 2.4% as of January 2022. It’s a record low for the state. The state has added 85,800 jobs from 2021 to 2022.

Apply for unemployment benefits in Indiana »

Unemployment Benefits:

  • Minimum per Week: $37
  • Maximum per Week: $390
  • Maximum availability of Benefits: 26 weeks

To file a claim by telephone number:

Benefit Call Center: 1-800-891-6499

For the deaf and hard of hearing: 317-232-7560

Job Centers:

CareerOneStop.org

Banking and taxes in Indiana

Indiana has a flat state income tax rate of 3.23%, meaning that all residents of Indiana pay the same percentage regardless of their income. Indiana Governor Eric Holcomb proposed to decrease the rate to 2.9%, citing the state’s strong financial position and surplus revenue. This would make Indiana’s individual tax income one of the lowest in the country.

 The sales tax rate in Indiana has been 7% since 2008. But there are things that are taxed separately from that sales tax. The gasoline tax is 53.65 cents per gallon, one of the most expensive rates in the country. Indiana’s cigarette tax is $2.98 (dollars per 20-pack) which is the 8th highest nationally.

Indiana residents are on average more likely to bank than the average American. The percentage of unbanked residents, or those without a checking or saving account, rests at just 4.5%.

Indiana housing market

Indiana’s house prices rose an unprecedented 17.5% in 2021, through a combination of low market inventory, strong buyer demand, and rock-bottom mortgage rates. Price gains like these will assuredly push homeownership out of the reach of many Hoosiers. Home affordability in Indianapolis’ 11-county metro area, for example, has declined by 13%.

The median price for homes in Indiana is $210,029, an increase of 18% since last year. However, the median price is lower than the national average of $293,349.

  • 69.1% of Hoosiers are homeowners
  • Median mortgage payment: $1,130
  • Median rent payment – $826
  • Average mortgage debt – $25,720

Indiana offers a homestead exemption of $19,300, which is doubled for married couples, joint owners, or joint filing spouses.
For those seeking mortgage relief, Indiana Homeowner Assistance Fund (IHAF) can help. Hoosiers having trouble making rent payments can seek assistance through Indiana’s emergency rental assistance program.

Talk to a HUD-certified housing counselor to get help with the housing challenges you’re facing.

Retirement in Indiana

Indiana’s famed “Hoosier Hospitality” and many choices for a small town or metropolitan living, in addition to a low cost of living, make it a great choice for retirement.

Currently, the average Hoosier has $385,047 saved for retirement, almost $400,000 less than what is needed to retire comfortably ($785,000). The average age of retirement is 63, while 23% of retirees rely on Social Security for at least 90% of their income.

Average Indiana insurance premiums

Indiana, much like the rest of the country, operates under an “at-fault” based system when it comes to automotive accidents. Holding an average rate for auto insurance premiums at $1,189, Indiana drivers pay $420 less per year than the national average.

Although average annual home insurance premiums are reasonable at $1,395, when it comes to average health insurance premiums, expect to fork over no less than $5,543 annually.

Helpful resources for Hoosiers facing hardship

Food Insecurity

City/RegionFood BankPhone NumberAddress
BloomingtonHoosier Hills Food Bank812-334-83742333 West Industrial Park Drive, Bloomington, IN 47404 [PO Box 697]
EvansvilleTri-State Food Bank, Inc.812-425-07752504 Lynch Road, Evansville, IN 47711
Fort WayneCommunity Harvest Food Bank of Northeast Indiana, Inc.260-447-3696999 East Tillman Road, Fort Wayne, IN 46855 [PO Box 10967]
IndianapolisGleaners Food Bank of Indiana, Inc.317-925-01913737 Waldemere Ave., Indianapolis, IN 46241
South BendFood Bank of Northern Indiana574-232-9986702 South Chapin Street, South Bend, IN 46601

Veterans

As of 2019, Indiana was home to 380,690 Veterans. These resources are available to help Veterans that are facing unemployment, homelessness, and other hardships.

Indiana Department of Veterans’ Affairs
National Crisis Hotline: (800) 273-8255
Headquarters:
777 N Meridian St, Suite 300
Indianapolis, IN 46204
(317) 232-3910

Find Veterans’ services in your area »

Helpful employment resources for Veterans:

How Consolidated Credit helps Indiana residents find debt relief

In 2021, Consolidated Credit provided free credit counseling to 3,048 Indiana residents. Of those, 158 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $9,768). The others received a free debt analysis and complementary budget evaluation, and they were directed to the right solution for their situation to get out of debt as quickly as possible.

We’d also like to congratulate the 123 Indiana residents that got debt-free last year with the help of Consolidated Credit!

Relief options to consider if you’re in debt in Indiana

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 can refinance your debt at a low-interest rate and enjoy 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 Indiana residents with high debt and a good credit score.

Indiana 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 Indiana residents with counseling programs that identify the best way to get out of debt after considering their situations. Indiana 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 Indiana, 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 Hoosiers can get out of debt in 36-60 payments, on average.

Another option for Indiana 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 Indiana residents with overwhelming debt. It can help you avoid bankruptcy.

 

If you’re curious how we can help you, below, you will find a few case studies from clients that we’ve helped in Indiana. 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.

If you’re tired of making payments and getting nowhere, talk to a certified credit counselor to review your options for debt relief.

Case Study

Misty from Oolitic, IN

“I absolutely LOVE Consolidated Credit! They have helped me dig out of a debt hole!! Thank you!!! ”

Where she started:
  • Total unsecured debt: $10,585.00
  • Estimated interest charges: $5,500.56
  • Time to payoff: 9 years, 4 months
  • Total monthly payments: $430.80
After DMP enrollment:
  • Average negotiated interest rate: 1.41%
  • Total interest charges: $48.69
  • Time to payoff: 4 years, 4 months
  • Total monthly payment: $205.00
Time Saved

5 years

Monthly Savings

$225.80

Interest Saved

$5,451.87

Case Study

Patricia from Wadesville, IN

“Very knowledgeable and helpful. Excellent team! Creative with solutions. Thank you, thank you, thank you!!! ”

Where she started:
  • Total unsecured debt: $45,630.00
  • Estimated interest charges: $26,919.11
  • Time to payoff: 14 years, 11 months
  • Total monthly payments: $1,825.20
After DMP enrollment:
  • Average negotiated interest rate: 6.27%
  • Total interest charges: $3,650.30
  • Time to payoff: 4 years, 1 months
  • Total monthly payment: $1,006.00
Time Saved

10 years, 10 months

Monthly Savings

$819.20

Interest Saved

$22,968.81

Case Study

Sherron from Indianapolis, IN

“My experience with Consolidated Credit was wonderful. They were always helpful when I called and accommodated me if there was an issue. I would and have recommended them to my family and friends. ”

Where she started:
  • Total unsecured debt: $50,839.00
  • Estimated interest charges: $29,618.18
  • Time to payoff: 14 years, 6 months
  • Total monthly payments: $2,033.56
After DMP enrollment:
  • Average negotiated interest rate: 8.20%
  • Total interest charges: $7,513.52
  • Time to payoff: 4 years
  • Total monthly payment: $1,219.00
Time Saved

10 years, 6 months

Monthly Savings

$814.56

Interest Saved

$22,104.66

Get the debt relief you need! Talk with one of our certified credit counselors today to get a free debt and budget evaluation and find out if you qualify for a debt relief program.