The second most populous state in the country, the “Lone Star State,” continues to draw people in with its job opportunities, manufacturing growth, and tech hubs. But even with those benefits, Texas has its challenges. For example, natural disasters like hurricanes, floods, wildfires, and tornadoes increasingly impact Texans and raise their insurance prices.
This could explain why Texas ranks No. 2 on a recently released report titled “States with the Largest and Smallest Credit Card Debt Increases.” The average Texas household has $12,485 in credit card debt, and Texans collectively owe $119,455,449,414.
“Texans enjoy a lot of freedoms that typically help them keep costs low, such as wide-ranging freedom of choice for utilities,” explains Gary Herman, President of Consolidated Credit. “But those same freedoms have resulted in sky-rocketing costs this year. It’s made it difficult for Texans to budget, and many were forced to rely on credit to get by, as a result.”
Consolidated Credit Helps Texas Residents Reduce Their Total Credit Card Payments by Up to 50%
This chart shows a breakdown of average consumer debt in Texas based on the latest Household Debt report from the Federal Reserve.
The most recent data shows 25,671 Texans filed for bankruptcy this year.
Income and employment in Texas
Texas has a per capita, or average per person, income of $37,514, which is less than the national average of $41,261. They have a median household income of $75,149. And their minimum wage is equal to the federal minimum wage of $7.25 per hour.
Since Texas is a right-to-work state, employees cannot be denied employment because of union membership or lack thereof. Additionally, employees cannot be forced to join or leave a union against their will. Employees are also not obligated to pay union dues. However, they are still allowed to enjoy the union benefits.
Furthermore, Texas is an employment-at-will state. This means that at any given moment and for any reason employment may be terminated. Consequently, neither the employer nor the employee guarantees they will uphold employment. Hence, they may also similarly terminate their relationship.
As of 2024, Texas had an unemployment rate of 4.1%, which is on par with the national average in the same year.
Texas has no income tax rate. Texas imposes a state sales and use tax of 6.25%. Local jurisdictions (cities, counties, special purpose districts, and transit authorities) may impose up to 2% sales and use tax for a maximum combined tax rate of 8.25%.
Banking is also fairly uncommon compared to most states. Residents without a checking or savings account represent 7.7% of the population.
Texas housing market
Texas is home to some of the biggest cities in the nation. Houston, San Antonio, and Dallas are the top three most populated cities in the state. All of them have populations above 1 million. This makes housing competitive, but there are still fluctuations in the market.
Houston home prices were up 8.7% in September 2024, and sold for a median price of $353,000. The median rent is $1,852 a month, a figure that increased $12 since last year. That said, Zillow reports that the housing market in Houston is currently “cool” as opposed to “warm” or “hot”, indicating that Houston is not currently a squeezing sellers market.
Texas offers homestead exemptions. This allows a homeowner to protect up to 100% of the value of their primary residence, depending on certain factors.
If you are finding it challenging making rental payments, you can seek assistance through Texas’s rental programs. For those seeking mortgage relief, Texas offers a lending hand through the Texas Housing Assistance program.
Talk to a HUD-certified housing counselor to get help with the housing challenges you’re facing
CNBC reported in 2024 that the average Texan would need about $53,468 a year to retire. A 20% comfort buffer ($10,694) is recommended. That means the target for a comfortable retirement in Texas would be about $64,162.
The state’s 0% income tax rate ensures people think twice before considering retirement elsewhere. Especially when you consider one in seven retirees rely on Social Security for 90% of their income. That Social Security income is not taxed remains a huge draw to retiring in the state.
Average Texas insurance premiums
Texas, much like most states across the U.S., operates under a fault-based system when it comes to car accidents. For this reason, along with the average $2,458 yearly for auto insurance premiums, it is essential for injury and property damage that victims have proof of liability so they may be compensated for their losses.
Average annual home insurance premiums are fairly high at $3,916. When it comes to average health insurance premiums, expect to fork out about $6,324 annually.
As of 2024, Texas was home to 1,534,356 Veterans. These resources are available to help Veterans that are facing unemployment, homelessness, and other hardships.
How Consolidated Credit helps Texas residents find debt relief
In 2024, Consolidated Credit provided free credit counseling to 15,043 Texas residents. Of those, 3,044 went on to consolidate their debt with our help through a debt management program (the average amount of debt enrolled was $15,146). 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 1,114 Texas residents who got debt-free last year with the help of Consolidated Credit!
Relief options to consider if you’re in debt in Texas
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 Texas residents with high debt and a good credit score.
Texan 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 Texas residents with counseling programs that identify the best way to get out of debt after considering their situations. Texas 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 Texas, 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 Texans can get out of debt in 36-60 payments, on average.
Another option for Texas 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 Texan 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 Texas. If you’re facing challenges with debt, call us at (844) 276-1544to 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.
“Everyone has been very helpful and informative. Thanks, Consolidated Credit!
”
Where
she
started:
Total unsecured debt: $8,251.00
Estimated interest charges: $4,455.58
Time to payoff: 10 years, 5 months
Total monthly payments: $334.12
After DMP enrollment:
Average negotiated interest rate: 2.22%
Total interest charges: $741.27
Time to payoff: 3 years, 10 months
Total monthly payment: $196.00
Time Saved
6 years, 7 months
Monthly Savings
$138.12
Interest Saved
$3,714.31
Case Study
Karee
from
El Paso, TX
“Paying off my debt has been simple and stress-free from the beginning. Everyone has been very helpful and supportive. I never thought I’d ever be out of debt but in less than a year I will achieve my goal!
”
Where
she
started:
Total unsecured debt: $15,698.00
Estimated interest charges: $8,912.28
Time to payoff: 11 years, 1 month
Total monthly payments: $627.92
After DMP enrollment:
Average negotiated interest rate: 5.73%
Total interest charges: $2,459.65
Time to payoff: 4 years, 10 months
Total monthly payment: $303.00
Time Saved
6 years, 3 months
Monthly Savings
$324.92
Interest Saved
$6,453.33
Case Study
Roxann
from
Wichita Falls, TX
“Consolidated Credit was the best thing I could have ever done. They were honest, caring and understanding with me. I have recommended them over and over to others.
”
Where
she
started:
Total unsecured debt: $28,957.00
Estimated interest charges: $16,445.78
Time to payoff: 15 years, 4 months
Total monthly payments: $1,176.32
After DMP enrollment:
Average negotiated interest rate: 10.35%
Total interest charges: $3,594.00
Time to payoff: 4 years 3 months
Total monthly payment: $627.00
Time Saved
11 years, 1 month
Monthly Savings
$549.32
Interest Saved
$12,851.78
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.
