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Nebraska Debt Relief Guide

Sandwiched between the Great Plains and the Midwest is the state of Nebraska. A strong economy and a low cost of living draw people in to the Cornhusker State. And it’s not surprising. At the end of 2021 while other states struggled, Nebraska boasted the lowest unemployment rate (1.9%) in the United States.

Still, even though unemployment rates and cost of living are low, the average Nebraskan has an average credit card balance of $4,819.

“Nebraskans have fared better than many during the pandemic, but residents are still getting hit with rising prices like the rest of the country,” says Gary Herman, President of Consolidated Credit. “And economic stability often means consumers get comfortable carrying credit card debt. I think that combination is why we’re seeing credit card balances rise in the state. But even if you’re stable, credit card debt isn’t good for your finances. You need to find a solution to pay it off.”

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

Consumer Debt in Nebraska

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

In 2020, 3,222 Nebraskans filed for bankruptcy compared to the previous year’s filing total of 4,126.

Income and employment in Nebraska

Nebraska has an average per capita (average per person) income of is $57,942, which is slightly lower than the national average of $59,729. Nebraska has a median household income of $61,439. On top of this, Nebraska has a minimum wage of $9 compared to the federal minimum of $7.25.

Nebraska is a right-to-work state. This means that employees cannot be denied employment because they are part of a union or if they are not. And employees cannot be forced to join or a leave a union. Employees are also not obligated to pay any union dues. However, employees are still allowed to enjoy any union benefits.

On top of this, Nebraska is an employment-at-will state. For this reason, employment may be terminated at any given moment and for any reason. Consequently, an employer nor an employee guarantee they will uphold employment. So, they may terminate their relationship in the same vein.

This freedom of employment gives Nebraska workers plenty of opportunity to seek any job placement and negotiate salary and benefits. But it can also mean less job security. This makes it crucial for Nebraskans to maintain a strong financial safety net, with robust emergency savings and low credit card balances.

Throughout 2020, Nebraska maintained well below average unemployment rates of around 2.5%. And by September 2021, Nebraska’s unemployment percentage dropped to 1.9%, which put Nebraska on the top of the list for lowest unemployment rates.

Unemployment Benefits: 

  • Minimum per Week: $70
  • Maximum per Week: $440
  • Maximum availability of Benefits: 26 weeks

General Information about the Unemployment Insurance Program:
https://dol.nebraska.gov/UIBenefits

To file a UI claim online:
https://neworks.nebraska.gov/vosnet/loginintro.aspx

To file a claim by telephone number:

Telephone Support for Unemployment Insurance: 

1-855-995-8863

Coronavirus update: Nebraska is providing updates on Unemployment Insurance changes related to COVID-19 here:

http://dhhs.ne.gov/Pages/Coronavirus.aspx

Job Centers:

https://www.careeronestop.org/LocalHelp/AmericanJobCenters/find-american-job-centers.aspx?location=Nebraska&radius=25&ct=0&y=0&w=0&e=0&sortcolumns=Location&sortdirections=ASC

Banking and taxes in Nebraska

Nebraska has an income tax rate ranging between 2.46% and 6.84%. Nebraska imposes a state sales and use tax of 5.5%. Counties and cities in Nebraska are allowed to charge additional sales tax on top of the state sales tax.

For example, the state capital, Omaha, has a local tax of 2.5% on prepared foods and drinks.

Banking in Nebraska is also somewhat uncommon compared to most states, as residents without a checking or savings account represent 6.5% of the population.

Nebraska housing market

For Nebraskans trying to live in metropolitan areas, like Omaha and Lincoln, it can be expensive. For example, Omaha saw its median home prices increase by 9.3% in 2021. Homes spend an average of 21 days on the market.

Therefore, it’s unsurprising to see that Omaha has a highly competitive housing market that plays into sellers’ hands. Meanwhile, Lincoln has a median home listing price of $349,900, with homes spending an average of 28 days on the market. Similarly, the housing market in Lincoln is a competitive seller’s market. This makes it crucial for first-time homebuyers to have a good handle on their finances so they can be mortgage-ready.

For homeowners, Nebraska offers homestead exemptions of up to $60,000.

  • 66.1% of Nebraskans are homeowners
  • Median mortgage payment: $1,352
  • Median rent payment: $833

If you are finding it challenging making rental payments, you can seek assistance through Nebraska’s emergency rental assistance program. For those seeking mortgage relief, Nebraska offers a lending hand through Nebraska Investment Finance Authority’s (NIFA) homebuyer programs.

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

Retirement in Nebraska

Retirement in Nebraska can be tough because the average Nebraskan does not have enough saved up to live comfortably in the state post-retirement. Currently, the average Nebraskan has $378,412 saved for retirement, which is $427,588 less than what they would need to retire comfortably. The average Nebraskan retiree would need to have about $806,000 saved to live comfortably in retirement. 

Though Nebraska’s harsh winter climate and location in Tornado Alley may be drawbacks to retiring in the state. But, because Nebraska has low income tax rates, people often consider Nebraska an option. And for the 29% of retirees who rely on Social Security for at least 90% of their income, this is a huge draw to retiring in the state.

Average Nebraska insurance premiums

Nebraska, like most states across the U.S., operates under a fault-based system when it comes to car accidents. The average year auto insurance premiums are $1,383. That’s why it is imperative for injury and property damage victims to have proof of liability so they can be adequately compensated for their losses.

However, the average annual home insurance premiums are fairly high at $3,547. And when it comes to average health insurance premiums, Nebraska ranks 8th in the country with an annual rate of $7,379.

Helpful resources for Nebraskans facing hardship

Food Insecurity

City/RegionFood BankPhone NumberAddress
ArapahoeArapahoe Area Food Pantry402-563-45443020 18th St Ste 13 Columbus, NE 68601
AuroraHamilton County Food Pantry402-694-69791118 N St Aurora, NE 68818
BellevueRenewal Food Bank425-736-813215022 NE Bel-Red Road, Bellevue, 98007
ColumbusPlatte County Food Pantry402-563-45443020 18th St Ste 13 Columbus NE 68601
HastingsHastings Food Pantry402-463-2911918 W 4th St Hastings NE 68901
LincolnFood Bank of Lincoln, Inc.402-466-81704840 Doris Bair Circle, Suite A, Lincoln, NE 68504
OmahaFood Bank for the Heartland402-331-121310525 J Street, Omaha, NE 68127

Veterans

As of 2019, Nebraska was home to 117,466 Veterans. These resources are available to help Veterans that are facing unemployment, homelessness, and other hardships.

Veteran Resources:

https://veterans.nebraska.gov/

https://www.va.gov/directory/guide/fac_list_by_state.cfm?State=NE&dnum=All

Helpful employment resources for Veterans:

How Consolidated Credit helps Nebraska residents find debt relief

In 2021, Consolidated Credit provided free credit counseling to 864 Nebraska residents. Of those, 44 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $10,525). 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 54 Nebraska residents that got debt-free last year with the help of Consolidated Credit!

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

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 Nebraska residents with high debt and a good credit score.

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

Another option for Nebraska 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 Nebraskan 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 Nebraska. 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.

Ready to see if Consolidated Credit can help you, too? Connect with a certified credit counselor now for a free debt and budget evaluation

Case Study

Craig from Omaha, NE

“My experience with Consolidated has been excellent. I have one payment remaining and then I’ll have fully paid off $54,000 in debt. ”

Where he started:
  • Total unsecured debt: $54,000.00
  • Estimated interest charges: $31,641.24
  • Time to payoff: 17 years, 2 months
  • Total monthly payments: $2,160.00
After DMP enrollment:
  • Average negotiated interest rate: 8.00%
  • Total interest charges: $9,954.33
  • Time to payoff: 4 years, 4 months
  • Total monthly payment: $1,230.00
Time Saved

12 years, 10 months

Monthly Savings

$930.00

Interest Saved

$21,686.91

Case Study

June from Omaha, NE

“Consolidated Credit helped me pay off a lot of my credit card debt in a considerably short period of time. I was very happy with how professional and knowledge all of the reps were in helping me get my debt under control. ”

Where she started:
  • Total unsecured debt: $37,504.00
  • Estimated interest charges: $22,123.01
  • Time to payoff: 16 years
  • Total monthly payments: $1,500.16
After DMP enrollment:
  • Average negotiated interest rate: 6.33%
  • Total interest charges: $5,512.75
  • Time to payoff: 4 years, 3 months
  • Total monthly payment: $859.00
Time Saved

11 years, 9 months

Monthly Savings

$641.16

Interest Saved

$16,610.26

Don’t keep struggling to pay off credit card debt with minimum payments. Talk to a certified credit counselor now to review your options for debt relief.