Debt Relief Programs
If you’re facing debt in Alabama, you’re not alone. From Birmingham to Mobile to rural towns across the state, thousands of Alabamians are feeling the strain of credit card bills, loans, and everyday expenses. At APFSC, we offer non-profit debt relief and credit counseling services tailored to help you regain control of your finances and build a clear path toward a debt-free future.
The Growing Debt Problem in Alabama
Understanding the Debt Landscape in Alabama
Alabama households are among the most financially vulnerable in the U.S. due to low median income levels and high reliance on credit. The average credit card debt per borrower in the state is just over $5,200. Meanwhile, student loan debt continues to grow, with the average borrower owing around $36,000. Roughly 13.9% of Alabama residents are actively repaying student loans.
When wages don’t stretch far enough to cover healthcare, rent, transportation, and food, credit becomes a survival tool. But over time, this reliance can lead to ballooning balances, missed payments, and mounting stress. That’s why more people across Alabama are turning to APFSC for lasting solutions.
How APFSC Helps Alabama Residents Get Out of Debt
We begin with a free, confidential consultation where a certified credit counselor reviews your income, expenses, and debts. Based on your situation, we’ll build a custom Debt Management Plan (DMP) that simplifies your payments and reduces the total interest you owe.
Our DMP gives you the power to:
- Consolidate unsecured debts into one affordable monthly payment
- Work with creditors to reduce interest rates
- Eliminate late fees and stop collection calls
- Pay off debt in 3 to 5 years
- Receive ongoing education and support to avoid future debt
No loans, no tricks—just honest support from people who care about your success.
Common Causes of Debt in Alabama
- Medical expenses with limited or no insurance
- Job losses, layoffs, or seasonal work
- Credit card dependence to cover living costs
- Student loans with high interest and delayed repayment
- Lack of financial literacy or budgeting tools
Why Choose a Debt Management Plan?
A Debt Management Plan is a safe and proven solution for people who are struggling to keep up with unsecured debt payments. This includes credit cards, personal loans, medical bills, and collections. Unlike debt settlement, a DMP does not require you to stop paying or damage your credit long-term.
Here’s how it works:
- We negotiate with your creditors to reduce your interest rates
- You make one fixed monthly payment to APFSC
- We disburse your payments to all participating creditors
- You stay on track and avoid new debt while rebuilding your credit
Most of our clients complete their plans in three to five years, depending on the amount of debt and income.
Talk to a HUD-certified housing counselor to get help with the housing challenges you’re facing.
Alabama Consumer Protections & Debt Laws
Debt collection in Alabama is regulated by both state and federal laws. The Fair Debt Collection Practices Act ensures that creditors cannot harass or threaten you. Additionally, Alabama has specific statutes of limitations for collecting debts through the courts—usually three to six years depending on the debt type.
If you’ve been receiving collection letters or court threats, you may have options. APFSC can help you understand your legal rights and guide you toward a solution that protects your income and peace of mind.
Key Debt Statistics in Alabama
- Average credit card debt: $5,217
- Average student loan debt: $36,107
- Residents with student loans: 13.9%
- Total student loan debt in Alabama: $23.5 billion
- Average credit score in Alabama: 691
Why Choose APFSC?
As a non-profit organization, APFSC is focused on helping you—not profiting from your situation. We offer judgment-free support, transparent options, and actionable steps to help you get back on track.
When you contact us, you’ll speak with a certified counselor who understands the financial challenges unique to Alabama. You’ll receive a personalized action plan based on your income, debt, and long-term goals. There’s no obligation, and your first session is completely free.
FAQ
Does this affect my credit?
Your credit may dip slightly at first, but most clients see improvement within a year as they make consistent payments.
What debts can be included?
We help with credit cards, medical bills, collections, personal loans, and other unsecured debts.
Can I still use my credit cards?
Once enrolled in a DMP, those accounts are typically closed to help you stay on track.
Is my information kept confidential?
Yes. All consultations and services are private and secure.
Case Studies
Approved agency for all major creditors including:
