Debt Relief in Virginia: Facts, Programs, and Solutions

From Shenandoah National Park to the Appalachian Trail, Virginia is one of the most beautiful states in the Union. It also has the 11th-highest household debt-to-income ratio.

While debt has become a natural part of American life, too much can feel overwhelming. Fortunately, if you’re in debt today, it doesn’t have to mean you'll still be in debt in a few years. Learning how debt relief in Virginia can help is a great step. 

Average credit card debt in Virginia- debt relief seekers

Credit card debt in Virginia impacts many across all age groups. We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during November 2024. Here are the key statistics:

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This snapshot shows that the average credit card debt for Virginians seeking debt relief rose slightly month-over-month (MoM), with the percentage of debt holders and the average debt for balance carriers experiencing a modest increase.

Breakdown of average credit card debt by age group

This breakdown shows how credit card debt affects each age group in Virginia, with older adults generally carrying higher balances and a greater proportion holding debt.

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 www.freedomdebtrelief.com

Debt Settlement: A Powerful Solution in Virginia

Debt settlement involves convincing unsecured creditors (like credit card companies) to accept less than you owe as payment in full. Here's how it works:

• You need money to offer your creditors. If you don’t have any set aside, you can start putting money into an account each month. To be able to afford to do that, most people choose to stop paying their debts. Any time you stop paying your debts, your credit standing is likely to take a hit. 

• Once you have enough money set aside, you (or the debt settlement company you’re working with) contact your creditors to offer a percentage of the total due. Frequently, the offer is made using a debt settlement letter.

• If the creditor accepts your offer, you or your negotiator will draw up a written agreement for the creditor to sign.

• Once an agreement is in place, the agreed-upon amount is sent to the creditor, and the debt is considered paid in full. 

• Most people who join a professional debt settlement program clear all of their enrolled debts in two to four years. 

Is Debt Consolidation the Right Choice?

Another option is to consolidate your debt. Debt consolidation could be an option if your credit score is high enough to qualify for a low interest rate and you have a steady income. 

Here's how debt consolidation works:

• You apply for a loan at a lower interest rate than the rates you currently pay on your credit cards. 

• If you’re approved, you use the loan to pay off more than one debt.

• You then make monthly payments on the new consolidation loan.  

Other Debt Relief Alternatives in Virginia

• Hardship programs: A financial hardship program is a plan designed by your creditor to give you a break from making payments. Creditors use different strategies, including forbearance, deferred payments, or loan modification. Creditors offer hardship programs because they don't want you to abandon the debt entirely. 

• Income-driven repayment plans: Income-driven repayment plans (IDRs) are typically used to lower federal student loan payments according to your income and family size. 

• Credit counseling: Credit counseling is for people having trouble paying unsecured debts like credit cards or medical bills. Most credit counseling services offer various services, from budgeting to personal finance workshops. They may suggest a debt management plan if you can afford to fully repay your unsecured debts in three to five years. It’s a possible option if you can afford your debt but you can’t get a handle on it by yourself. 

• Bankruptcy: Bankruptcy is a legal process for those who can't pay their debts without significant hardship. The bankruptcy court decides how much you can afford to pay your creditors. That sometimes means paying less than the total amount owed, although that's not always true. 

Understanding the Statute of Limitations (SOL) on Debt In  Virginia

The statute of limitations (SOL) is the timeframe within which a creditor (like a credit card company) or a debt collector can legally file a lawsuit to collect the money you owe. Once the statute of limitations expires, you have a legal argument that may stop the creditor in its tracks—even if you owe the money. 

Like every other state, Virginia has statutes of limitations. For example:

• Mortgages: 5 years from the end of the Deed of Trust

• Signature debts and signed contracts: 5 years from the last transaction

• Open accounts, debts without a signature, oral debts: 3 years from the last transaction

• Auto loans: 4 years from sale following repossession

• Medical debts: 3 years from the date of the final invoice or last payment made

• Virginia tax debts: 7 years for balances levied on or after July 1, 2016

Taking the Next Steps in Virginia

When it comes to credit card debt relief, the first step is to do some research. This is where the internet is a great boon: you can quickly find options that could work for you. However, there’s a lot of information out there—and not all of it is accurate or applies to you. This is when it’s a good idea to consult the experts.

Regardless of which solution you choose to clear your debt, researching your options means you’re on the right path already. Our Certified Debt Consultants can answer any questions you may have about the Freedom Debt Relief program. Let us get you one step closer to finding the right debt solution for you.  Give us a call any time at 800-910-0065.