Debt Relief in Nevada

Nevada Debt Relief

Nevada residents have been struggling with debt over the past decade, seeing ever-increasing household debt. As of 2025, the state of Nevada ranks fifth in the nation for the highest rate of debt per capita, and fourth for the highest credit card debt as of 2024. In addition, it ranks the highest in credit card delinquencies.

A decade ago, a majority of bankruptcy filings in the state stemmed from people overextending their budgets on mortgages due to the rise in housing market prices. Now, growing credit card debt is also a major cause of bankruptcy in Nevada.

Living costs—especially in Las Vegas—are above average, leaving many struggling to make ends meet. The city battles with poor credit scores and debt-to-income ratios that leave many with a daunting amount of debt.

Some residents may feel it’s impossible to keep their heads above water. If you, like many others, are finding it difficult to reach a debt-free life, there are options that can assist you. As a non-profit credit counseling agency, we are here to help guide you on the path to financial stability.

First, it’s important to note that you are protected under the Fair Debt Collection Practices Act (FDCPA). This federal law prevents debt collectors from calling you too early in the morning or late at night. A debt collector cannot imply that you will be arrested or sent to jail for nonpayment. Neither can they threaten you with a lawsuit. They may only notify you if one has already been filed.

As a resident of Las Vegas, you are also protected by Nevada debt collection laws that prohibit aggressive collection strategies, such as harassing your employer.

Learn more about our debt consolidation services in Las Vegas here.

Debt Relief Options in Nevada

Start with Credit Counseling

Credit counseling is often the first and most important step toward financial recovery. In this free, confidential service, you’ll sit down with a certified credit counselor who reviews your budget and expenses to pinpoint areas for adjustment. They can guide you toward appropriate debt relief programs, such as debt management plans, that suit your financial situation.

Rather than navigating your debt alone, you can receive professional guidance and support from a credit counselor.

Can You Pay Off Debt on Your Own?

Yes, it’s absolutely possible to pay off your debt independently, but it takes commitment, consistency, and a good understanding of your finances. This approach works best when your debt is limited to a few credit cards, and your income gives you enough flexibility to make more than the minimum payments each month.

Start by tracking your monthly income and necessary expenses—things like rent, groceries, gas, and utilities. From there, figure out how much money you have left over.

If that leftover amount is greater than your combined minimum credit card payments, you may be in a good position to manage your debt independently. If not, you’ll need to look for ways to trim your budget—like shopping smarter, cutting subscriptions, or carpooling—to free up more cash.

Once you know how much you can consistently put toward debt, choose a repayment strategy:

• Snowball Method: Focus on paying off your smallest balance first while making minimum payments on the rest. Once that’s paid off, roll the same payment into the next smallest debt. This method gives quick wins and builds momentum.
• Avalanche Method: Target the credit card with the highest interest rate first. Pay extra toward that one while maintaining minimums on the others. The approach saves you the most money over time by reducing how much interest you pay.

If you’re unsure which method is best for you, or your budget is tighter than expected, you may want to consider credit counseling. A counseling session can help you assess your options and avoid falling further behind. You don’t have to do it all alone.

When to Consider Debt Settlement

Debt settlement is often promoted as a quick fix for reducing what you owe, but it comes with serious risks. These programs are usually run by for-profit companies that promise to negotiate with your creditors to settle your debt for less than the full amount. While this may sound appealing, the process can severely damage your credit and finances.

Many debt settlement companies ask you to stop making payments while they negotiate. This can result in late fees, increased balances, and a sharp drop in your credit score. Worse, there’s no guarantee your creditors will agree to settle. Some may refuse entirely or even sue to recover unpaid debts.

Even when a settlement is reached, the cost can be high. Companies typically charge an ongoing monthly fee plus a portion of whatever they “save” you—sometimes totalling thousands of dollars. Meanwhile, your accounts remain delinquent, and your credit continues to suffer.

Research shows that less than 10% of clients successfully complete debt settlement programs. Many end up with worse credit, unpaid debt, and out-of-pocket costs for a service that didn’t work.

Before choosing this option, explore safer alternatives like credit counseling or a debt management plan. These options offer more reliable results, with far less risk to your financial health.

Is Debt Consolidation Right for You?

Debt consolidation lets you combine multiple debts—often credit cards—into one new loan with a single monthly payment. The goal is to simplify repayment and possibly lower your interest rate. But it’s not the right fit for everyone.

To qualify for a loan with good terms, you usually need decent credit and a steady income. If your credit score has already dropped due to missed payments, you might only qualify for high-interest loans, which defeats the purpose of consolidating.

Even if approved, the loan may not cover all your debts. You could end up managing both a new loan and leftover balances. Plus, consolidation doesn’t include financial counseling—so without help changing your spending habits, you may fall back into debt.
In many cases, this option just extends your payments without solving the root problem. Before applying, speak with a certified credit counselor to review your full range of options.

Bankruptcy: What You Need to Know

Bankruptcy is a legal process that can eliminate or restructure debt, offering a fresh start—but it comes with serious consequences, especially to your credit score. Filing for bankruptcy will stay on your credit report for 7–10 years.

Many people turn to bankruptcy without first exploring other debt relief options. It should be a last resort, not a first step. Talking to a credit counselor beforehand can help you understand whether alternatives—like a debt management plan—might help you avoid the long-term impact of filing.

The Benefits of a Debt Management Plan (DMP)

A Debt Management Plan (DMP) is a structured repayment plan designed by a nonprofit credit counseling agency to help you pay off unsecured debts—like credit cards—in full, but with reduced interest rates and waived fees.

With a DMP, you make a single monthly payment to the counseling agency, which then pays your creditors. Most plans take 3 to 5 years to complete, and you’re typically required to close your credit card accounts while enrolled.

DMPs are ideal for those who can manage a steady monthly payment and want to avoid bankruptcy. While your credit may dip slightly at first, most participants see improvements over time as their debt decreases. DMPs don’t reduce the amount you owe, but they do make repayment more manageable and predictable.

Nevada Debt Relief FAQs