Debt can be a burden that feels like it will never end. If you find yourself in this situation, remember that you are not alone. There are options available to do debt consolidation in Ohio. Seeking help is the first step to becoming financially independent. There are many resources available to those who are willing to work towards regaining their financial stability. With determination and effort, you can break free from the cycle of debt.
As Americans continue to face economic hardships due to the Coronavirus pandemic, many are struggling with personal debts, especially credit card debt, in Ohio, the average resident has more than $5,500 in credit card debt. In addition to this high level of credit card debt, Ohio ranks as the 8th worst state for the total amount of student loan debt owed. This combination of factors makes it difficult for residents of Ohio to get ahead financially.
Anything over 30% is bad for your credit score. This makes it hard to get out of debt and can lead to financial problems down the road. However, there are some things that you can do to regain control of your finances and get out of debt.
Credit Card Debt Statistics In Ohio
Here’s a quick look at how debt is affecting people in Ohio, in general:
- Credit card debt per household: $5,446
- Credit usage: 30.59%
- The average number of cards: 3.02
- Percentage of accounts that are delinquent (90 days past due): 7.16%
- Average credit score: 678
- A most popular type of credit card: Cash back rewards
- The available credit limit on average: $14,176
Options To Get Out Of Debt
There are a number of things you can do to get out of debt. Below are some common strategies that have helped people:
- The debt snowball strategy is a simple and effective way to pay down your debt. You start by paying off your smallest debt first while making minimum payments on your other debts. Once the smallest debt is paid off, you roll the payments you were making on that debt into the payments you’re making on the next highest debt. This process continues until all of your debts are paid off.
- The “avalanche” strategy involves paying off the balance with the highest interest rate first, while still making minimum payments on all other debts. Once that balance is paid, you redirect the same payment towards another balance with the second-highest interest rate, and so on. This can help you save money in the long run by reducing the amount of interest you accrue.
- Work with a nonprofit credit counseling agency: A credit counselor will review your finances and develop a plan of action to help you get out of debt. They will also set short and long-term financial goals with you, and figure out a plan of action to help you meet those goals.
Debt Relief In Ohio
This type of loan enables you to pay off various debts and simplify your monthly payments into one single account.
Debt relief in Ohio can be an effective way to lower your monthly payments and save money on interest, especially if you have a good credit score and can secure a loan with a lower interest rate. By consolidating your debts, you’ll have more breathing room in your budget to cover other living expenses like your mortgage or rent, groceries, and utilities.
Protect Yourself With Ohio Debt Collection Laws
If you’re dealing with debt, it’s important to know your rights. The Federal Debt Collection Practices Act (FDCPA) protects consumers from abusive debt collection practices. In addition, each state has its own laws in place to protect consumers from harassment by debt collectors.
As an Ohio resident, you should be aware of the state’s laws surrounding debt and the statute of limitations. The statute of limitations is the amount of time a debt collector has to take you to court over a past-due debt. Once the statute of limitations expires, a debt collector can no longer sue you for the money you owe.
It’s important to understand the statute of limitations on different types of debt in Ohio before making any payments to a debt collector. By understanding the law, you can protect yourself from being taken advantage of by a debt collector.
Statute Of Limitations In Ohio
Different states have different laws regarding the statute of limitations on debt. In Ohio, the statute of limitations is six years, regardless of the type of debt. This timeframe is counted from the date a debt becomes overdue or from the last date of payment, whichever is more recent.
Filling For Bankruptcy In Ohio
If you find yourself in a situation where you cannot repay your debts and have exhausted all other options, you may need to consider filing for bankruptcy. Bankruptcy can provide you with a fresh start, stopping collection calls and allowing you to keep some of your assets. However, it will also negatively affect your credit score for years.
Individuals have two main options when declaring bankruptcy:
- Chapter 7 involves selling your assets in order to pay off creditors. You must pass a means test using an official form. The process of completing the test can be complicated, so it is often best to seek help from an experienced bankruptcy attorney.
- Chapter 13 allows you to keep some of your assets and pay all or part of your debts through a structured repayment plan spread out over three to five years.
If you’re considering bankruptcy, it’s important to understand that it will stay on your credit report for several years. This can make it more difficult to get a mortgage, car loan, or personal loan in the future.
Still, if you coordinate your filings with your state’s waiting period, bankruptcy can often help you rebuild your credit and, ultimately, your finances.
Debt can have a crippling effect on your life, preventing you from making any progress with your finances. But there is help available; there are resources and laws that can assist you in getting back on track and safeguard you from further harm.