Start My Answer

How to Get Debt Relief in Tennessee

Dena Standley | July 21, 2022

SoloSuit is on its way to rescue you from debt

Summary: If you're struggling with debt in Tennessee, SoloSuit can help you find the relief you need.

Debt can rob you of your peace of mind. The overwhelming monthly payments or the persistent calls from creditors can prevent you from finding solace even in a nature-abundant state like Tennessee.

According to a World Population Review, Tennessee has the 5th lowest debt in the country, with a debt ratio of 17.3%, meaning that Tennessee has relatively more assets than debt. Hence, Tennessee has resources that can help you get out of debt or assist you indirectly by providing necessities for free or at subsidized rates.

Debt-relief programs are a lifeboat that has saved many Tennesseans from drowning in debt. But before choosing an option, take time to research the company you want to work with to avoid being scammed. In addition, consider the effects the chosen option will have on your financial situation and credit score.

Here's how debt consolidation works in Tennessee

Debt consolidation in Tennessee is not different from other states. It is a debt management option that combines all debt into a single debt with a lower interest rate. Depending on the method you choose and your financial situation, you can pay the money back over a longer or shorter period. You can consolidate the debt independently or work with a reputable debt consolidation company.

If you decide to do it yourself, you should take out a loan with a zero to a maximum of 7% interest rate and immediately pay all your pending unsecured debt. Afterward, you‘ll remain with one debt to pay monthly and at a slightly lowered amount.

Let's consider an example.

Sandy has three pending loans: a medical bill of $1500, a credit card debt of $2030, and a store card balance of $870. Each of these debts have an interest rate between 11–13%. She decides to consolidate the debts by getting a personal loan of $4400 with an interest rate of 4.5%. She pays off the three debts and remains with the personal loan—which she determines to clear in 3 years.

Consolidation is not a viable option for all Tennesseans with debt. You can qualify for debt consolidation only if you have a consistent monthly income, a reasonable debt-to-income ratio, and a fairly good credit score. The table below gives you a breakdown of the credit scores.

Credit Score Breakdown

Credit score rating

Actual credit score

Bad

300-549

Poor

550-619

Fair

620-679

Good

680-739

Excellent

740-850


Sometimes, it is better to work with a debt consolidation company if you lack the financial expertise or you have tried to manage it yourself and failed. The debt consolidation company will work with you as follows:

  • They will assess your financial position and debt situation.
  • They will request you to sign up with their program.
  • You will open a savings account where you'll make a single payment each month, and the company distributes the money to the creditors.
  • The company will contact the creditors and inform them that they will be handling the debt and direct all communications to them.
  • They will negotiate for a lower interest rate or elimination of late fees.
  • You will discuss the monthly payments after applying the new rates and continue with the payments until you clear the debt.

Whichever method you use, the goal is to help you make a single monthly payment at a possibly reduced rate. This strategy will remove the burden of distributing payments over several creditors and save you some money.

Debt settlement can affect your credit score

Debt settlement is a debt relief option that allows you to clear your debt in full by negotiating with your creditors for a reduced payment. You can contact the creditors directly or work with a debt settlement company. Several factors determine how severe debt settlement affects your credit score, including:

  • Your current credit situation.
  • Reporting tendencies of your creditors.
  • The size of debt being settled.
  • Condition of your other debts.
  • How much was reduced from the original debt.

Once you make the payments, it is recorded as 'paid-settled' on your credit report. A paid-settled status is better than having a severely delinquent debt record, although it affects your credit score. The reason being you did not pay the debt as per the originally agreed terms.

Other lenders may take notice of the settlement and shy away from granting you credit. This is a risk that some Tennesseans consider worth taking because it relieves them from debt and gives them a fresh start.

Creditors are usually unwilling to settle debts that are up-to-date and paid promptly. It is easier to settle debts that have passed their due date and have already been turned over to a debt collection agency. Some debt settlement companies will advise you to stop making payments for several months to prompt the creditors to accept a settlement.

Keep in mind that you will pay a fee to the debt settlement company for their services. Even after the fee, there's a great chance you will still save money, depending on the settlement reached.

Should bankruptcy be your last option?

It depends.

Bankruptcy often seems like a magical solution because it promises to get rid of most debt. It is a debt-relief option that works for Tennesseeans with little to no money to make debt settlement payments.

The sense of debt relief comes at a high cost because your credit report will have a bankruptcy entry for 7–10 years, and your credit score will be severely affected. Other effects of bankruptcy are:

  • You will have a high-risk borrower status, and you may fail to get loan approvals.
  • You will receive extremely high-interest rates because of a poor credit score.
  • You may find it hard to get a new job or a decent promotion if your employer pulls your credit report.

Bankruptcy is often considered a last option for most consumers. Before choosing this option, contact a non-profit credit counseling organization in the following approved list from the Department of Justice.

Consider these Tennessee debt relief programs

As a resident of Tennessee, you are entitled to state and federal programs that can help people who have fallen on hard financial times. Check out these Tennessee debt relief programs to see if you qualify:

  • Families First: Tennessee's version of TANF, this program helps participants become self-sufficient by providing temporary cash assistance, transportation, child care assistance, educational supports, job training, employment activities, and other support services.
  • Child Care Services: Plans, implements, and coordinates activities and programs to ensure quality and the health and safety of children in licensed care.
  • Social Services Block Grant: Provides funding for the Adult Homemaker Services and the Adult Day Care services to low-income elderly or disabled adults.
  • Supplemental Nutrition Assistance Program (SNAP): Provides food assistance to Tennessee residents in need.
  • Private Student Loan Relief: Provides a network of financial counselors who link troubled families with trustworthy agencies for financial assistance with private student loans.

What if I've been sued for debt in Tennessee?

Debt collectors and creditors can give you sleepless nights with their constant calls or emails demanding their money. If they're coming after you for a debt you owe, they might even take you to court. If that's the case, the first step to winning a debt lawsuit is to respond to it.

You can use SoloSuit's free Answer form to respond to the Summons for debt collection and win in court. To learn more about how to respond to a debt lawsuit in Tennessee, check out this video:

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James


Get Started


We have answers.
Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.


Ask a Question


>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.



Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.


Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court