Florida Debt Relief Options

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Key takeaways

Many Florida residents have debt or struggle to pay all their bills. Luckily, there are several options for debt relief in Florida, including debt consolidation loans.
If you aren’t sure how to get out of debt, start by contacting a nonprofit credit counseling agency.
Debt settlement is a type of debt relief that can be expensive and risky. Plus, some debt settlement companies are actually scams, so watch out for companies that require upfront payment or advertise a government debt relief program.

Florida debt relief options

If you’re a Floridian overwhelmed with debt — whether that’s due to high-interest credit card use, a loss of income or unexpected expenses like medical bills — you’re not alone. Across generations, Americans carry a median of $18,762 in nonmortgage debt, according to a recent LendingTree study. Several cities in the Sunshine State rank highly for median credit card balances.

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Fortunately, there are several Florida debt relief options available. Still, some of these options come with risks, so make sure to review the information you need to choose the debt relief strategy that best meets your needs.

DIY budget

Best if you can reduce your spending, your debt-to-income ratio is low and you have the self-discipline to pay more than your minimum payments

DIY debt repayment strategies don’t require you to involve a lender or other third party. There’s also no risk of direct credit damage.

You might consider one of the following strategies:

Debt avalanche method: Put extra income toward your highest-interest debts first while keeping up with the minimum payments on all of your debts. The debt avalanche method is mathematically the fastest way to eliminate debt, and it also saves you money on interest.
Debt snowball method: Pay off your smallest debt balances first. While your progress may be slower with the debt snowball method than with the debt avalanche method, reducing the number of bills you receive can help you stay motivated.

Get started by creating a new budget with debt repayment goals.

Call your creditors

Best if you’re facing financial hardship, like a job or income loss, health issue or family emergency

Many credit card issuers offer hardship programs or other repayment plans. Your credit card company may agree to pause or reduce your monthly payments, lower your interest rate or waive some fees. If the alternative repayment plans are unaffordable for you, your credit card company might consider settling your debt for less than you owe.

Get started by calling your creditors to explain your financial situation and ask what options are available to you.

Credit counseling

Best if you need help understanding your options, or you consistently live beyond your means

A credit counselor can help you establish a budget and teach you healthy financial habits. They can also enroll you in a debt management plan, an approach to debt consolidation. Your credit counselor may negotiate with your creditors to extend your repayment term or reduce interest or fees, which can help you achieve a lower monthly payment. Most credit counseling agencies are nonprofit organizations, but they may still charge small fees for their services.

Get started by making a free appointment with a certified credit counselor.

Debt consolidation

Best if you have a good credit score and high-interest debts

Debt consolidation involves applying for a personal loan or home equity loan and using the funds to pay off other high-interest debts. This leaves you with one fixed monthly payment on the new loan and a potentially lower interest rate that could save you money on debt repayment. You can also take advantage of a promotional offer on a balance transfer credit card to consolidate your credit card debt.

Get started by checking your credit score, then compare debt consolidation loans and 0% APR credit cards. You can typically prequalify to get an estimated APR without hurting your credit.

Debt settlement

Best if you can’t qualify for other options and you want to avoid bankruptcy

Debt settlement companies negotiate with your creditors to settle your debts for less than you owe. However, they’re not always successful at settling all your debts, and they charge high fees that may cancel out your savings from debt settlement.

What’s more, debt settlement companies typically encourage you to stop paying your bills during negotiations, which can damage your credit and result in additional fees, collection attempts or legal action against you. You may also need to pay taxes on settled debt.

Get started by working with a credit counselor to identify viable alternatives. If you decide to pursue debt settlement, educate yourself about debt relief scams and choose a reputable debt settlement company.

Bankruptcy

Best if your debt is unmanageable

Bankruptcy is a legal process that provides debt relief. A bankruptcy court oversees the liquidation of your assets or the completion of a repayment plan. After this, most of your remaining debts are discharged, so you won’t have to pay them. Bankruptcy stops collection activity and protects you from eviction, repossession and wage garnishment, at least temporarily — and in most cases, the relief is permanent. While bankruptcy stays on your credit report for up to 10 years, the effect on your score may be minimal if you already have bad credit.

Get started by consulting with a bankruptcy attorney. Although you can file on your own, bankruptcy is complex and mistakes could cause your case to be thrown out in court.

Debt collection laws in Florida

While creditors can legally sell debts that are past due to a debt collection agency or attorney, Florida state and federal laws protect you from abuse and harassment by debt collectors.

Both the federal Fair Debt Collection Practices Act and Florida’s Consumer Collection Practices Act provide important protections for debtors, prohibiting debt collectors from activity such as:

Calling you before 8 a.m. or after 9 p.m. or contacting you at work without your permission
Threatening you, using violence against you or using obscene or profane language
Publishing or advertising information about your debt
Deceiving you by claiming to work for the government or police, threatening to sue or arrest you with no legal basis for those actions, lying about their identity or your debt or forging documents
Collect more money from you than permitted by your debt agreement and the law

In addition, a debt collector must:

Tell you they are a debt collector
Send you a debt validation letter within five days of first contact with pertinent info about your debt and your rights under the law
Stop contacting you after you send a written request to the agency

Note that while the federal law applies only to third-party debt collectors, Florida law extends the protections to original creditors. State law also requires debt collectors to maintain licensure, so you can ask the debt collector for the license number to avoid falling prey to a scam.

File a complaint

If you believe a debt collector is violating your rights under the law, you can file a complaint with state or federal agencies. Start by filing a complaint with the Florida Attorney’s General Office. You can also file with the Florida Office of Financial Regulation and the Federal Trade Commission.

Debt statute of limitations in Florida

The Florida statute of limitations for written debt contracts, including credit card agreements, is five years. This period begins once you’re in default according to the terms of your contract. One exception is medical debt, for which the statute of limitations is only three years from the date the medical facility sells the debt to a third party. After the statute of limitations expires, you’ll have a strong defense if a lawsuit is brought against you in Florida, but the debt won’t disappear.

If a debt collector contacts you about an old debt, find out whether you’re within the statute of limitations before taking action. If you make a partial payment or sign off on a repayment plan, it could restart the clock on the statute of limitations.

Florida debt statistics

Debt is a problem for people across the country, and Florida residents are no exception. Many Floridians are saddled with debt and struggling to manage their everyday expenses. That said, some other states are faring worse.

Here’s how debt in Florida compares to national averages:

Monthly debt payments: The average monthly debt payment in Florida was $1,683 in the third quarter of 2024. The state also ranks third for the highest monthly credit card payments, with residents paying an average of $304 toward their credit card bills.
Total credit card debt: Floridians tend to spend more with credit cards than residents of most other states. In the first quarter of 2025, Florida residents had an average of $9,000 in credit card debt, an increase of more than 10% from the year prior.
Financial insecurity: About 38% of Floridians said they had difficulty paying their typical household expenses in 2024, according to a LendingTree analysis of data from the U.S. Census Bureau. While that’s concerning, 12 other states have even higher rates of financial insecurity.

Resources for low-income Floridians

If insufficient income is causing you to rack up debt, government benefits and assistance programs may provide you with more breathing room in your budget. Check whether you’re eligible for:

Frequently asked questions

No, the Florida government doesn’t offer an official debt relief program. If someone contacts you claiming to represent a government debt relief program, it’s probably a scam.

Florida’s homestead exemption law prohibits creditors from seizing your primary residence to cover your debts, but there are exceptions. For example, if you owe taxes to the IRS, a forced sale of your home may be permitted. You can also face foreclosure if you default on your mortgage payments or fail to pay a contractor who has a lien on your home.

Yes, debt settlement is legal in Florida. However, while credit counseling agencies are subject to Florida law, debt relief companies aren’t regulated in Florida and are subject to federal law.

Debt settlement is risky and should be considered a last resort. To avoid scams, don’t work with a company that requires upfront fees, promises to reduce or eliminate your debt or tells you it can stop collection attempts.

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