Georgia Debt Relief: A 5-Year Review
Although the cost of living in Georgia is about 5.5% lower than the national average, many people in the state are struggling with debt.
In 2024, the median income in Georgia was about $80,000. And the average person in Georgia owed about $60,400 in debt as of 2024, according to the Center for Macroeconomic Data. In comparison, the average debt on a national level in 2024 was $62,000.
If you're overwhelmed by debt in Georgia, know that you aren’t alone. Data from Freedom Debt Relief shows that many Georgia residents are having a hard time managing their debt. But there’s help available.
Here, we’ll review some debt trends in Georgia since 2020, and we’ll discuss what you can do if you’re struggling to keep up with your debt and need relief.
Georgians can free up cash each month with Freedom Debt Relief
Ozzy S., Freedom client²
“Right away, I had more money each month because of program costs so much less than what I was paying on my minimums.”
Excellent •
5-Year Debt Trends in Georgia
Inflation has been hurting consumers since it started rising in 2021. And a lot of people in Georgia and across the U.S. are having a hard time keeping up with their bills and managing their debt.
Debt relief seekers in Georgia saw their debt increase from $23,730 in 2020 to $32,058 in 2025—a roughly 35% increase.
The average minimum monthly debt payment among debt relief seekers rose from $1,749 in 2020 to $1,813 in 2025—a roughly 3.7% increase.
FICO Scores have also decreased among Georgia debt relief seekers. In 2020, they had an average FICO Score of 622, but in 2025, that number fell to 588. That’s a bit lower than the average 592 credit score among debt relief seekers across the U.S. in 2025.
Meanwhile, debt relief seekers in Georgia had an average debt-to-income (DTI) ratio of 32.2% in 2021. In 2025, that number rose substantially to 42%, which shows that many people struggling with debt are spending a greater proportion of their income on it.
On a national scale, debt relief seekers had a DTI of 42.3% in 2025, so Georgia debt relief seekers may be spending a comparable portion of their income on debt payments.
Total debt is also on the rise in Georgia. Between 2021 and 2025, total unsecured debt among debt relief seekers (including credit card balances, installment loans, and student loans) rose from $76,909 to $87,707.
Secured debt (including mortgages and auto loan balances) increased from $216,600 in 2021 to $253,418 in 2025. And total debt (secured plus unsecured) rose from $293,508 in 2021 to $341,125 in 2025. On a national scale, total debt in 2025 was $345,211 among debt relief seekers.
Debt levels also dropped between 2020 and 2025 among low-income Georgia debt relief seekers. In 2020, low-income debt relief seekers owed an average of $23,730, but that number fell to $21,610 by 2025.
Moderate-income debt relief seekers in Georgia had the opposite experience. Their average debt increased from $20,656 in 2020 to $27,543 in 2025.
Estimated debt levels, meanwhile, have dropped substantially for debt relief seekers in Georgia with poor credit. In 2020, people in that group had an average debt of $48,142. By 2025, that number had fallen to $28,543.
But debt relief seekers with fair credit saw their average debt rise during that same time period. It went from $31,353 in 2020 to $34,737 in 2025.
Another notable change is that debt relief seekers ages 18 to 25 had an average debt of $27,636 in 2021. By 2025, that number fell to $24,689. Debt relief seekers ages 26 to 35, on the other hand, saw their average debt increase from $24,772 in 2021 to $25,911 in 2025.
Georgia credit card debt
Among Georgia debt relief seekers, average credit card balances rose from $15,980 in 2020 to $17,475 in 2025. That's higher than the national average credit card balance of $16,244 in 2025 among debt relief seekers.
The average monthly credit card payment, however, decreased for Georgia residents seeking debt relief. In 2020, that average payment was $556. It was $528 in 2025. But that's a bit higher than the average monthly $489 credit card payment among debt relief seekers nationally as of 2025.
Credit utilization, meanwhile, rose among Georgia debt relief seekers, going from 56.2% in 2020 to 74.5% in 2025. That's above the national average of 73.50% among debt relief seekers. A high percentage of credit utilization can lead to a lower credit score and make it hard to keep up with credit card payments.
The average number of open credit card accounts held by debt relief seekers in Georgia fell from 10.5 to 7.6 during that same five-year period. That's roughly in line with the national average among debt relief seekers of 7.4.
Credit card debt can be difficult to pay off because credit cards typically charge very high interest rates. Credit card interest can also compound frequently, making it easy for that interest to build up against you. If you’re struggling to keep up with your credit card debt, it could pay to seek credit card debt relief.
Georgia auto loan debt
Among debt relief seekers, the average auto loan balance in Georgia rose from $25,061 in 2020 to $28,710 in 2025. That's higher than the average auto loan balance among debt relief seekers nationally, which is $26,997 in 2025.
Meanwhile, the average monthly auto loan payment among debt relief seekers in Georgia rose from $754 to $794 during that same time period. That $794 payment is higher than the average monthly auto loan payment of $749 in 2025 across debt relief seekers nationally.
Georgia mortgage debt
Among debt relief seekers, the average mortgage balance in Georgia fell slightly from $225,238 in 2020 to $224,708 in 2025. That’s a bit below the average mortgage balance of $239,406 of debt relief seekers nationally.
The average monthly mortgage payment among debt relief seekers in Georgia increased from $1,654 in 2020 to $1,850 in 2025. On a national scale, debt relief seekers had an average mortgage payment of $1,989 in 2025.
Georgia installment loan debt
Among debt relief seekers in Georgia, the average installment loan balance rose from $7,230 in 2020 to $10,924 in 2025. That average loan balance is lower than the average installment loan balance among all U.S. debt relief seekers of $12,632 in 2025.
The average monthly installment loan payment for Georgia debt relief seekers, meanwhile, rose from $400 in 2020 to $480 in 2025. That's right in line with the average monthly installment loan payment among national debt relief seekers, which is $485 as of 2025.
Georgia student loan debt
Among debt relief seekers, the average student loan balance in Georgia rose from $55,318 in 2021 to $59,308 in 2025. That's much higher than the average student loan balance among debt relief seekers across the U.S., which is $49,932 in 2025.
Georgia debt relief seekers had an average monthly student loan payment of $241 in 2021. The monthly average payment rose to $341 in 2025. On a national scale among debt relief seekers, the average monthly student loan payment in 2025 is $313.
If you’re struggling to repay your federal student loans, you may be eligible for relief in the form of forbearance, deferment, or an income-driven repayment plan that lowers your monthly payments.
Georgia Debt Delinquencies and Collections
Debt relief seekers in Georgia had 2.0 accounts in collections on average in 2020, compared to 2.1 in 2025. The average balance in collections also fell from $3,753 in 2021 to $3,298 in 2025. Among debt relief seekers nationally, the average collections balance was $3,040 in 2025.
It’s not just debt relief seekers who are having trouble paying their debts on time. Here’s how all Georgia residents are faring in terms of debt delinquencies, according to data from TransUnion.
| Type of debt | 30+ days past due | 60+ days past due | 90+ days past due |
|---|---|---|---|
| Auto loan | 6.41% of consumers | 2.50% of consumers | Data not available |
| Credit card | 6.46% of consumers | 4.58% of consumers | 3.32% of consumers |
| Mortgage | 3.76% of consumers | 1.71% of consumers | 1.03% of consumers |
The longer a debt is past due, the more of an impact it can have on your credit score. Also, with secured debts like auto loans and mortgages, borrowers who are past due run the risk of repossession or foreclosure.
Georgia Statute of Limitations
A statute of limitations is the amount of time a creditor can legally sue you to collect an unpaid debt. It’s important to know what the Georgia statute of limitations is for debt collections. Here’s an overview.
| Type of debt | Georgia statute of limitations |
|---|---|
| Credit cards | 6 years |
| Medical debt | 4 years |
| Personal loans | 4 years |
| Auto loans | 4 years |
The statute of limitations generally starts on the date you first fall behind on payments. Making payments on your debt can reset that clock.
What are the Georgia debt collection laws?
The Fair Debt Collection Practices Act (FDCPA) outlines the rules for how debt collectors can legally try to collect debts. It applies to the U.S. as a whole as well as Georgia.
Debt collectors may not call you at an unreasonable hour, harass you, or use threatening language. They also cannot tell other people about your debt.
Georgia also has its own Installment Loan Act, which regulates loans of $3,000 or less. It sets the length of these loans and limits the amount of interest charged on these loans to 10%.
Georgia Debt Relief
If you have debt that's overwhelming, a debt relief program could be a good way to get out of debt. With a debt relief program, a debt settlement company negotiates with creditors on your behalf. You typically make a monthly deposit into a dedicated account, and that money is used to repay your debts.
A debt relief program is typically suitable for people who are far behind on their debts and don't have a path toward paying off those debts in full. A debt relief program can take as little as two to four years to complete.
If you want to learn more about your debt relief options in Georgia, contact Freedom Debt Relief to request a consultation. A Debt Consultant can speak to you about your financial situation, and possibly help you find a program.
Is Debt Consolidation the Best Debt Solution?
If you’re struggling with debt but aren’t missing payments, debt consolidation may be the right choice for you. Debt consolidation is when you take a new loan and use it to pay off more than one smaller debt. It could make your debts easier to manage by lowering the number of monthly payments you have to make.
Better yet, if you can lower the interest rate on your debt, you might find it more affordable. If you have a lot of high-interest credit card debt, you may be able to lower your interest rate by paying if off with:
A personal loan
A 0% balance-transfer credit card
A home equity loan or line of credit
Debt consolidation could make the most sense if you:
Have a strong enough credit score to qualify for a debt consolidation loan or balance transfer credit card
Have planned ahead and know you’ll be able to pay off the new debt
Other Debt Relief Alternatives in Georgia
Here are some other debt relief options that may be all or part of the solution for your situation:
Debt settlement. A debt relief company can try to negotiate your debts with creditors on your behalf. Debt settlement seeks to reduce the amount of total debt you owe. Creditors don’t have to participate, but many do.
Hardship programs. These are arrangements some creditors offer to make it easier to repay what you owe. They may include delaying or reducing monthly payments, suspending late fees, or lowering your interest rate.
Income-driven repayment plans. These are most commonly offered in connection with government-backed student loans. These plans base your monthly payment on the amount of money you make. This can help you afford student loan payments on a low income.
Debt management plan. Credit counselors may offer you a three to five year repayment plan to fully pay off your unsecured debts. You pay the credit counseling agency and they distribute the money to your creditors. They might be able to negotiate fee or interest rate discounts. A debt management plan will not reduce what you owe, and the monthly payment is often high.
DIY debt payoff. You can pay off your own debts at your own pace by setting a budget and allocating money to your debt every month. Common strategies for this include the avalanche method, where you pay off your debts from highest interest rate to smallest, or the snowball method, where you pay off your debts from smallest balance to largest. For each method, you make minimum payments across all your debts except the one you’re focusing on. On that one, you pay any extra money you can. Once it’s paid off, you move to the next debt on the list.
Bankruptcy. Bankruptcy is legal protection from creditors. A court decides how to use your income or assets to settle your debts to the extent possible. Not everyone qualifies for the kind of bankruptcy that wipes out credit card debt. If you can afford a payment, you’ll have to pay for three or five years. Then any remaining eligible debt is forgiven. Creditors can’t opt out of bankruptcy.
Georgians can free up cash each month with Freedom Debt Relief
Ozzy S., Freedom client²
“Right away, I had more money each month because of program costs so much less than what I was paying on my minimums.”
Excellent •
What are the different types of debt consolidation options available in Georgia?
There are several different options for debt consolidation in Georgia. The right choice for you will depend on your specific financial situation.
You can consolidate your debt into an unsecured personal loan, which should come with fixed monthly payments. Or, if you own a home, you can look at consolidating your debt into a home equity loan or cash-out refinance, where you borrow more than your remaining mortgage balance, pay off your old mortgage, and use the rest of the money to pay off other debts.
A balance transfer credit card may also be an option for debt consolidation, and many of these offers come with a 0% introductory interest rate. One problem with balance transfers is that if you already have high debt, you might not qualify for a balance transfer card that has a high enough limit to help you consolidate. Also, you don’t get a lot of time to repay the debt.
You may also be able to get onto a debt management plan (DMP), where you consolidate your debt and make a single monthly payment through a credit counseling agency. The agencies that offer these plans are typically funded by credit card companies. They are motivated to coach you into fully repaying your debts. The plan usually lasts three to five years. If you’ve been making minimum payments, the DMP payment could be painfully high.
What are the typical interest rates for debt consolidation loans in Georgia?
The interest rate you pay on a debt consolidation loan will depend on a number of factors, including the type of loan you take out, the amount of your loan, and your credit score.
If you're taking out an unsecured personal loan, the stronger your credit score is, the lower an interest rate you may be able to qualify for. Working to boost your credit score before taking out a debt consolidation loan could result in lower payments each month while you're paying your loan off.
Personal loans are a popular choice for debt consolidation. Depending on your credit score, you might pay anywhere from about 8% to 36%.
Clearly, that's a very wide range, so if you're looking to consolidate your debt, you'll need to shop around with different lenders and see what rate they offer you on a loan. From there, you can calculate what your monthly payments would be to see if they're affordable.
What credit score is generally required for a debt consolidation loan in Georgia?
The credit score you need to qualify for a debt consolidation loan in Georgia will depend on your lender and the specific type of loan you're taking out. Personal loans are a popular type of debt consolidation loan, but they're also unsecured. This means they are not tied to a specific asset that a lender can sell or repossess, like a home or car, to get its money back if you default on the loan.
If you're taking out a personal loan, your lender may require a minimum credit score of 580. But some lenders may require an even higher score, depending on the amount of money you're looking to borrow. The higher your credit score, the more likely you are to get a competitive interest rate on a debt consolidation loan.
Are there any Georgia consumer protection laws?
Georgia has the Installment Loan Act, which regulates loans of $3,000 or less. It dictates the length of these loans and limits the amount of interest charged on these loans to 10%.
How to find reputable debt consolidation companies or credit counseling agencies in Georgia
It's important to check the credentials of any debt consolidation company or credit counseling agency you're thinking of using. Once you've narrowed down your choices, you can check them out with your state attorney general and the Better Business Bureau.
Also make sure to ask plenty of questions when getting a consultation. And be wary of red flags that include a very high upfront fee or high-pressure tactics to get you to sign a contract.
To find a reputable debt settlement company, start at the Association for Consumer Debt Relief. You’ll find an alphabetical list of member providers and links to their websites.
To find a reputable credit counseling agency in Georgia, start with the National Foundation for Credit Counseling (NFCC). The NFCC's website allows you to enter your information to connect with a certified counselor in your area.
The U.S. Department of Justice also maintains a list of approved credit counseling agencies. You can use its website to find your judicial district by state and country, and from there get further information.
What are the pros and cons of debt consolidation for Georgia residents?
A big benefit of debt consolidation is having one fixed monthly payment instead of having to juggle multiple debt payments. Another benefit is that you may be able to lower the interest rate on your debt with a consolidation loan. If you're juggling multiple credit card balances, for example, you may be able to lower your rate if you consolidate them into a personal loan.
With a debt consolidation loan, you might also have a clearer payoff timeline, which could help keep you motivated and on track. And if you make your consolidation loan payments on time, it could help your credit score improve.
One big downside of debt consolidation is that it won't wipe out any of your debt, and in some cases, it could cost you more in the long run. That's because the fees associated with a debt consolidation loan can add up. And if you're paying off your debt over a longer period of time, you might accrue more interest.
You might also struggle to qualify for a debt consolidation loan, or one with a competitive interest rate, if your credit needs work.
How does debt consolidation affect my credit score in Georgia?
Debt consolidation could help your credit score, but it could also hurt it. If you make your debt consolidation loan payments on time every month, it could help your credit score improve by helping you establish a positive payment history.
Also, in some cases, a debt consolidation loan might allow you to lower your credit utilization rate, which measures how much revolving credit you're using at once. That could help your credit score improve, too.
On the other hand, if you don't pay your debt consolidation loan on time, it could hurt your credit score. And if you consolidate your debt by using a credit card balance transfer, your credit utilization might not change.
Also, any time you apply for a new loan, it triggers a hard inquiry on your credit report, which could cause your score to drop by a few points. However, if a debt consolidation loan makes it easier to keep up with your debt, timely payments could more than make up for the minor credit score hit a hard inquiry might cause.
What are the steps to apply for a debt consolidation loan in Georgia?
If you're looking for a debt consolidation loan in Georgia, start by checking your credit score and credit report. If there are mistakes on your credit report, try to get them corrected before you apply for a debt consolidation loan, since that could lead to a boost in your credit score.
Next, make a list of your various debts so you understand exactly what you owe along with their interest rates. Also gather financial information a lender might need, including pay stubs, bank statements, and proof of a job.
After that, start shopping around for lenders in your area. Local banks and credit unions may be a good place to start.
When comparing lenders, pay attention to the interest rate and loan terms each one is offering, such as the length of your repayment period. Also make sure you understand the fees each lender will charge to put a debt consolidation loan in place and what your monthly payments will look like.
What alternatives to debt consolidation are available for managing debt in Georgia?
There are a number of alternatives to debt consolidation you may want to consider.
With a debt management plan, you work with a credit counseling agency to roll your debts into one monthly payment. With debt settlement, your creditors agree to accept a lower amount than the total amount you owe.
You can negotiate a debt settlement on your own or with the help of a debt relief company. Debt settlement may be an option if you feel your debt truly isn't repayable. However, debt settlement could have a negative impact on your credit score.
In some cases, budgeting carefully and using a debt payoff strategy like the debt snowball or avalanche could be an alternative to debt consolidation. If you're able to set a meaningful amount of money aside each month for debt payoff purposes, you can tackle your debts in order of highest interest rate to lowest, or smallest balance to largest—whichever method works best for you.
How do current economic conditions impact debt consolidation decisions in Georgia in late 2025?
While your credit score has an impact on the interest rate you might get on a loan, so do economic conditions.
Right now, interest rates are still elevated. However, the Federal Reserve is scheduled to meet in December, and at that time, it may lower its benchmark interest rate. Additional rate cuts could follow in 2026.
The lower the Federal Reserve's benchmark interest rate, the more affordable borrowing tends to be across the board. If you get a debt consolidation loan now, you may end up lowering the interest rate on your debt. However, if you wait until after the Federal Reserve cuts interest rates, you might end up with a rate that's even lower.
You should also know that the unemployment rate in Georgia was 3.4% as of August 2025, the last month for which data is available. That’s lower than the national average. It’s important to have a steady job if you’re applying for a debt consolidation loan, since you’ll need a way to keep up with your monthly payments.
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