Consumers in These 10 States Seek the Most Debt Help — What Programs Are They Using?
Written by
Vance Cariaga
Edited by
Cory Dudak
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Following a brief pause during the COVID-19 pandemic when consumers reined in credit card spending, Americans are once again piling up the debt. Many are also looking for ways to manage that debt — especially in states like Nevada, Virginia and Delaware.
Total household debt in the U.S. hit $17.94 trillion during the 2024 third quarter, according to a study from ConvertBankStatement, an online platform that lets users convert bank statements into various formats. That figure is up from $11.7 trillion a decade earlier.
In its study, ConvertBankStatement analyzed internet search data to uncover where Americans are most and least concerned about debt support, with a particular focus on search data used on Arefs and Google ads. Researchers looked at more than a dozen debt-related search terms, including “debt consolidation,” “debt help,” “debt management,” “debt relief” and “how to get rid of credit card debt.”
Where Consumers Are Researching Debt Solutions the Most
Here are the 10 states where residents search for debt support the most, based on monthly searches per 100,000 people:
- Nevada: 278.95 searches per 100,000
- Virginia: 276.86
- Delaware: 252.93
- Tennessee: 242.76
- Arizona: 239.66
- Florida: 238.82
- Washington: 236.15
- Colorado: 234.28
- North Carolina: 231.37
- Georgia: 229.12
The most common search term in the top three states was “debt consolidation loan.” With debt consolidation, you combine multiple debts into a single debt, according to the National Foundation for Credit Counseling (NFCC). The aim is to simplify the payment process and get better rates and more affordable payments.
Debt consolidation loans are similar to refinancing in that you take on a new loan to pay off balances in a single place. Consolidation loans typically involve banks and other traditional lenders, though you can also consolidate credit card debts into a single credit card. As the NFCC noted, the main downsides of debt consolidation are that you might face a balance transfer or loan origination fee, and you might not get a big enough loan to cover all of your debts.
A popular search term for Tennessee residents was “National Debt Relief” — a direct reference to the company of the same name that provides credit counseling and debt consolidation services.
These types of debt relief programs can be good options for people with unmanageable debt, according to ConvertBankStatement. But they also come with a couple of risks. One is that participating in debt relief can ding your credit score. The other is that creditors aren’t obligated to accept a reduced amount of money.
Another option is to enroll in a debt management plan (DMP). Under this program, you’ll typically send a monthly payment to a credit counseling organization for anywhere from 36 to 60 months, according to the NFCC. The organization will then distribute the payment to creditors on your behalf. The upside is that you can get better rates, though it also involves a long commitment.
Where Consumers Are Researching Debt Solutions the Least
While Nevada residents have the most pressing debt needs based on web searches, Vermont had the lowest number of people searching for debt support. Vermonters searched for “debt consolidation loan” the most, followed by “debt consolidation” and “national debt relief.”
Here are the five states with the least number of searches per 100,000 people, per the ConvertBankStatement study:
- Vermont: 134.37 per 100,000
- Maine: 141.15
- Iowa: 141.25
- Alaska: 151.35
- Wisconsin: 152.09
Ultimately, where you live may not necessarily affect your debt situation, but it’s still wise to keep in mind, as well as understand how people are searching for solutions to their financial situations.
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