Pennsylvania Debt Consolidation Services
f Pennsylvania were an independent country, its economy would rank as the 18th largest in the world. With an economic ranking of 18th, you might assume that every Pennsylvanian is living high off the hog, with money in the bank. But of course, that’s not the case for everyone.
Based on Freedom Debt Relief’s June 2022 Credit Card Utilization Data, the average credit card utilization of people looking for debt relief in Pennsylvania is 71%. By comparison, per Experian, the average credit card utilization in the U.S. in 2021 was 25%. High credit card utilization, in general, implies a greater likelihood of needing debt relief services. Many residents have ended up amassing significant debt from credit cards, student loans, and medical bills to name a few. For those residents, some form of credit card debt relief might be suitable.
Get in touch with Freedom Debt Relief now. Call 800-910-0065 for a free, no-obligation debt consultation.
Request a free debt evaluation to find out how we could help you:
- Resolve your debt faster
- Significantly reduce what you owe
- Make one low monthly program payment
Pennsylvanians 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 •
Debt Relief Programs
The good news is there are ways to combat your debt. There are systematic solutions available that can offer you relief from the stress and strain of carrying a debt burden that’s weighing you down. Often, when you owe a lot of money, it can be hard to stay positive. Especially when you’re only able to make minimum payments each month, which means you’re not making much of a dent in the principal. This type of situation calls for an action plan, so start considering the options.
One program that’s been used by folks in Pennsylvania and all over the United States is debt consolidation. This service gives you a loan that lets you combine all your debts into one manageable payment to the lender. If you have over $10,000 in debt, this could be a good choice for you.
Note that you’ll need good credit, a good credit report, and reliable income to pay back the loan. You’ll also need to be prepared to change your habits around money for this method to be successful. If you keep charging your cards, you’ll simply end up with the consolidation loan to pay back as well as additional debt.
If you qualify for a secured loan, you’ll save money by paying less on interest, which can help the situation a great deal. The downside of a secured loan is you need to offer a high collateral item like your home or car to guarantee the loan. And that can be a risky proposition for many consumers.
If you get an unsecured loan, the interest rate will probably be higher because the lender is taking on more risk. If you can’t get a reasonable interest rate, you might want to look into other debt relief solutions. Call Freedom Debt Relief at 800-910-0065 for a free debt evaluation to get help choosing the best solution for you.
Questions and Answers about Pennsylvania Debt Relief
Here's more information about your debt relief options in the Keystone State.
What are the main types of debt relief programs available to Pennsylvania residents?
Pennsylvania has no official state-run debt relief programs. You may want to consider other strategies for debt relief, such as:
Debt consolidation loan. You combine multiple debts into a single monthly payment with a new loan, ideally with a lower interest rate. A debt consolidation loan could streamline debt repayment and save you money on interest.
Debt settlement. In debt settlement, you negotiate with your creditors to reduce the amount you owe. You can DIY the negotiation or work with an experienced professional debt settlement company.
Debt management plan (DMP). In a debt management plan, you pay off your unsecured debt in three to five years. DMPs are set up and managed by nonprofit credit counseling agencies. A DMP won’t reduce the amount you owe, but your creditors might waive some fees or lower your interest rates.
Bankruptcy. Bankruptcy is legal protection from creditors. If you’re eligible for Chapter 7, you could walk away from your unsecured debts. Chapter 13 is a three to five year repayment plan, with the potential for partial debt forgiveness at the end.
Eligibility requirements for Pennsylvania government assistance programs for debt
Pennsylvania has no government assistance programs for debt relief. If you need help repaying your debts, other programs could provide financial support.
One way to free up money to repay debt is to enroll in a financial assistance program. Here are some programs to consider:
LIHEAP (Low-Income Home Energy Assistance Program) provides cash assistance to help eligible low-income Pennsylvania families pay their heating bills. Applications are accepted from November to April.
SNAP (Supplemental Nutrition Assistance Program) is a federal program that provides eligible families with funds for groceries and nutritious food.
WIC (Women, Infants and Children) offers food packages tailored to the needs of women and children, along with nutrition counseling and breastfeeding support.
If you don’t meet the income qualifications for SNAP or WIC, local food pantries could be a resource. Feeding Pennsylvania has an online tool to help you find nearby food banks.
Pennsylvania laws regarding statute of limitations on credit card debt
In Pennsylvania, the statute of limitations for credit card debt collection is four years. This time limit applies to most kinds of debt in Pennsylvania.
For credit card debt, the clock begins ticking once you fail to make a payment on the due date. That means that creditors don’t have legal standing to sue you more than four years from the date your last payment was due. For some debts, the final due date is not the same as the payment’s original due date.
If you have credit card debt and you’re at risk of being sued, you may want to explore debt relief solutions. For example, you could negotiate with your creditors to reduce the amount you owe and forgive the rest.
Another solution is a debt consolidation loan. Taking out a debt consolidation loan and using it to pay off credit card debt could help you manage your monthly payments better, save on interest charges, or both.
These debt relief solutions could help you avoid a lawsuit.
List of accredited nonprofit credit counseling agencies in Philadelphia
Philadelphia residents have access to nonprofit credit counseling agencies. If you want to work with a nonprofit credit counselor, here’s how to choose a reputable company.
The National Foundation for Credit Counseling (NFCC) can help you find Philadelphia credit counselors. The NFCC certifies member agencies to make sure they have the knowledge and skills to provide quality financial counseling.
Credit counseling agency members of the NFCC must meet the accreditation standards of the Council on Accreditation (COA). The COA is an independent nonprofit accrediting organization. All NFCC members must also follow NFCC’s member quality standards.
To be connected with NFCC-approved credit counseling agencies in Philadelphia, call the NFCC at 1-800-388-2227. You can also fill out a form at nfcc.org/agency-finder.
If you live in or around Philadelphia, you might qualify for free financial counseling, available at Financial Empowerment Centers (FEC) in the city. You can schedule a free financial counseling session by calling 1-855-FIN-PHIL (855-346-7445).
How does Chapter 7 bankruptcy filing in Pennsylvania affect my assets?
When you file Chapter 7, you’ll give the court a list of everything you own. Some assets are exempt, meaning you get to keep them. The court will sell your nonexempt assets and give the money to your creditors.
Every state has different bankruptcy exemption laws. You must have lived in the state for at least two years to qualify for Pennsylvania state exemptions. You can choose either the federal or state exemption list, but you can’t combine the two. Federal exemptions tend to be more generous than Pennsylvania's exemptions. For example:
| Exemption | Pennsylvania | Federal |
|---|---|---|
| Homestead (how much home equity you can keep) | $0 | $31,575 |
| Vehicle | $0 | $5,025 |
| Tools of the trade | $0 (certain items are specifically exempt) | $3,175 |
| Jewelry | $0 | $1,875 |
In Pennsylvania, you can protect several kinds of income, including pensions, veterans benefits, and workers comp payments. To understand the full list of exemptions and how they apply to you, talk to a Pennsylvania bankruptcy attorney.
Are there specific debt relief options for medical bills in Pennsylvania?
Pennsylvania has no state-run medical bill debt relief programs. If you have a medical bill you can’t pay, support may be available through income-based financial support from hospitals and healthcare systems. These programs could reduce the amount you owe, even if you've already received a bill.
Another solution is debt settlement. It may be possible to negotiate with your creditors to reduce the amount you owe. You could hire a debt settlement company like Freedom Debt Relief or take a DIY approach and negotiate on your own.
Pennsylvania state legislators introduced a bill to help residents avoid medical debt. House Bill 79 wants stronger requirements and information about hospital financial assistance. In May 2025, the bill passed in the House with strong bipartisan support but is still waiting for a vote in the Senate.
Compare debt settlement vs. debt consolidation pros and cons in Pennsylvania
Pennsylvania residents struggling with debt might consider debt settlement and debt consolidation. Each strategy has pros and cons. One drawback to both is that they don’t address any issues with overspending. Compare the two options to find out if one is better for your situation.
Pros of debt settlement and debt consolidation
| Debt settlement | Debt consolidation |
|---|---|
| Could reduce the amount you owe | Single monthly payment could streamline bill-paying |
| No upfront fees | Lower interest rate could lower the cost of the debt or speed up repayment |
| Could get rid of debt sooner than by making minimum payments | Could get a lower total monthly payment |
Cons of debt settlement and debt consolidation
| Debt settlement | Debt consolidation |
|---|---|
| Missed payments negatively impact credit score | Doesn’t reduce the amount you owe |
| No guarantee creditors will settle | Typically has fees |
| Not an option for secured debt, like mortgages or car loans | You might not qualify for a lower interest rate |
How to identify and report debt relief scams in Pennsylvania
Many legitimate debt relief companies are out there to help you, but so are debt relief scams.
If you come across people or organizations doing any of the following, they might be involved in fraudulent debt settlement or debt negotiation services:
Ask for payment before providing services
Make guarantees about how much debt will be forgiven
Contact you out of the blue
The Federal Trade Commission (FTC) protects you against deceptive and unfair business practices. You can report debt relief scams to the Federal Trade Commission (FTC) at reportfraud.ftc.gov.
In May 2025, Governor Josh Shapiro launched a consumer protection hotline, website, and email address for Pennsylvania residents to report scams and other consumer concerns. You can report financial, insurance, or consumer concerns in the following ways:
Call 1-866-722-6675
Email [email protected]
Visit pa.gov/consumer to make a report
What are my rights against debt collector harassment in Pennsylvania?
In Pennsylvania, the Fair Credit Extension Uniformity Act regulates debt collection practices. The law outlines actions that are considered unfair or deceptive. When attempting to collect debts from you, creditors and debt collectors must follow the law.
Creditors and debt collectors can’t harass, oppress, or abuse you when attempting to collect debts. They can't threaten you with harm, use obscene language, or contact you by phone more than seven times within a seven-day period.
Unless you have given prior consent or the circumstances are allowed by the court, debt collectors may not communicate with you in the following ways:
Before 8 AM or after 9 PM
At unusual times or places
Using a specific method of communication after you have requested that they stop using that method
At your place of work when your employer prohibits it
When they know an attorney represents you
Pennsylvania programs for homeowners struggling with mortgage payments
Help may be available if you're a Pennsylvania homeowner struggling to pay your mortgage.
The Homeowners' Emergency Mortgage Assistance Program (HEMAP) is a state-run program that helps homeowners avoid foreclosure. The program provides loans up to $60,000 to Pennsylvania homeowners at risk of foreclosure who are unable to make their mortgage payments due to circumstances beyond their control.
It’s not a grant, so you must repay the loan. In repayment, you’ll have to pay between 35% and 40% of your net monthly income, as determined by HEMAP. Repayment is based on household income. The minimum monthly payment amount is $25.
The Housing Stabilization Program (HASP) offers one-time or short-term financial assistance to homeowners and renters facing a temporary, non-recurring housing crisis. You must live in Pittsburgh and meet income qualifications.
Debt Collection in Pennsylvania
All states have a statute of limitations that prevent creditors from collecting on debts after a specific period has elapsed. The statute of limitations in Pennsylvania is only four years. Some states have much longer periods. Waiting for four years until the statute expires is one way to deal with your debt, but perhaps not the most proactive. In addition to debt consolidation and waiting for the statute to expire, there are other methods that may suit you better.
Get Help From the Experts
Call Freedom Debt Relief at 800-910-0065 and speak with one of our Certified Debt Consultants
Get help choosing a debt-resolution strategy
Start down the road to financial freedom
Don’t wait any longer. Find the answer to your debt situation today. Get in touch with Freedom Debt Relief or call 800-910-0065 now for a free debt consultation.
Pennsylvanians 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 •
End Your Debt
Find out how our program could help.
- One low monthly program deposit
- Settlements for less than owed
- Debt could be resolved in 24-48 months
