One of the most critical causes of concern among Americans is their debt. Financial breakdown is a major cause of panic among them. There are around 506 million credit cards in use in the United States, with a total debt of $807 billion. It makes matters worse when your city’s average cost of living is too high.


A survey revealed that among 2000 Americans, over two-thirds are not willing to move to pay off debts. Even though relocation would help them save money and pay off debts, they are skeptical. They had various reasons for not moving, among which family is the most common reason. The other reasons include people avoiding the hassle of moving, altering jobs, schools, or associations.


Now let us discuss some of the advantages of relocating to pay off debt:

Advantages of relocating to a better location and paying off debt

Financial perks that you might not avail in your city:


  • Higher median household income: Living in a city that provides higher income can help you save to pay off your debt. Income rates of a place depend on several factors like the demand of that area and the standard of living. Before opting to relocate, it is critical to evaluate both household income and the cost of living.


Places with higher Median Household Income:


  • Alaska: $77,640

  • North Carolina: $54,602

  • Texas: $61,874


  • Good cost of living to income ratio: Along with a high income, you must also consider your cost of living. An area that provides a low cost of living is highly beneficial for paying off debts.


Places with low cost of living:


  • North Carolina: 90.6%

  • Minnesota: 97.2%

  • Alabama: 82.3%


  • Fewer tax payments: Low tax areas highly influence your savings. The less tax you pay, the more money you have to pay off debt.


Places with fewer tax payments:

  • Alabama: 4% (sales tax)

  • Washington: 6.5%(sales tax)

  • Florida: 6% (sales tax)


  • Student Loan Repayment: If a high amount of student loan debt is bothering you, some public and private programs offer scholarships that can help you pay off these debts. But most of them require you to reside in that area. There might be a job specification needed in some of these. So ensure you go through all the pros and cons of your new location before finally moving in.


Places with Student Loan Repayment Programs: Kansas, Ohio, Michigan

Best places to move in the US for cheap living and get out of debt

You may not want to leave the United States, therefore here are some states where you might consider relocating to pay off your debts:


Alaska is located in the northwest corner of North America. You can enjoy the benefits of a strong economy in a more populated area in Alaska. The government of Alaska provides its residents with annual dividends. Alaskans also enjoy benefits like high median household income and zero state taxes.


  • Unemployment rate: 5.6%

  • Average median household income: $77,640

  • Average cost of living: 125.8%


Kansas is a midwestern state of America. Kansas’s unemployment rate is as low as 3.3%, making it more beneficial for people looking for jobs. The federal student loan repayment program that they offer either pays off your student loan or grants you tax credits equal to it. One of the places that might be attractive for you is Marquette. You will get free land to move in and build your house here.


  • Unemployment rate:  2.6%

  • Average median household income: $59,597

  • Average cost of living: 83.1%


Alabama can provide you with a home at a very reasonable price. The price of homes in Alabama is 40% less than the price of homes across the entire United States. Alabama has a very low rate for property taxes which can make further savings. The cost of living in Alabama is very low, with a very low unemployment rate.


  • Unemployment rate:  3.1%

  • Average median household income: $50,536

  • Average cost of living: 82.3%


Maine is located in the northeast of the United States. Maine offers Educational Opportunity Tax Credit to college graduates with student loan debt. STEM students are offered the Alfond Leaders student Debt Reduction Program by the Finance Authority of Maine (FAME) for their new migrants. With an unemployment rate of 3.5%, Maine is quite favorable in moving in.


  • Unemployment rate: 4.1%

  • Average median household income: $57,918

  • Average cost of living: 96.5%


Texas is located in the south center of the United States. Many cities of Texas offer an excellent average income to cost of living ratio. Texas unemployment rate is 3.7%. You can enjoy staying in this vibrant city without incurring heavy expenses.


  • Unemployment rate:  5.1%

  • Average median household income: $61,874

  • Average cost of living: 93.9%

Easy DIY debt elimination tips

A proper plan and a frugal lifestyle make paying off debts much more effortless. Among the various debt repayment strategies, you must choose the one that best suits your needs.


Based on your type of debt, you can go for many options. If you have a heavy outstanding balance on your credit card, apply the balance transfer method to pay off your debt.


In the case of vast amounts of payday loans, try consolidating them with the help of companies that provide payday loan assistance


For other loans, like a student loan, auto loan, etc., you can go through your new city’s facilities.


Your credit score will keep on improving with your debt repayment process. It is always better to pay off some of your debts as moving into a new city can be quite a hassle with so many debts.


These are fundamental ways of loan repayment, but you will still have to lead a much less expensive lifestyle to save money for paying off those debts. Moving into a favorable environment will help you do that smoothly.

Bottom Line

So, keeping all these parameters under consideration, would you prefer moving to pay off your debt? If you do so, carefully select your new location based on your requirements. Make sure you’ve done your homework before making a final selection. Remember, changing your city will help you pay off debts only if you find enough ways to save. Some of your expenses, like taxes, will reduce if you choose to move to a state with low tax rates. But your lifestyle expenses must be on a check, which will help you save more and pay off your debt faster. You can always reach out to experts for better outcomes.

Author bio: Lyle Solomon is a payday loan crusader and the principal attorney at Oak View Law Group in California. As a consumer finance attorney, he has written several legal and financial articles. Connect with him on LinkedIn or tweet him at @lyle_solomon.

Photo by Karolina Grabowska from Pexels