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If you’re an Ohio consumer and you’ve got over $10,000 in personal debt, you need to start repaying your creditors before time runs out. Below we go over the approaches consumers like you are using to get out of debt. Find the strategy that best fits your needs, or simply speak to a debt specialist for details.

Debt Consolidation in Ohio

If you are snowed under with debts and trying to keep all of your payments straight, consolidation may be the answer. It involves replacing all of those debts with a single payment. This could involve a loan or a debt management plan (DMP), a contract with your creditors put together by a credit counseling agency. This is chiefly for unsecured debt–debt not guaranteed by collateral like a car or home. For example:

  • Credit or Store Cards
  • Pay Day Loans
  • College Loans
  • Medical Bills

Let us put you in touch with a trusted service in your part of the state.

Debt Consolidation Xenia OH

Credit Counseling in Ohio

When you sign up for credit counseling, your specialist will negotiate with your lenders to get you improved rates and terms. The process doesn’t include a loan, your credit score should not drop, and the letters from collections should stop coming. Best of all, you should have only one major payment to to address all of your debt on a monthly basis, and it will be a sum that fits your budget. Most suitable candidates have these qualities:

  • Owe at Least $10,000
  • Steady Income

Credit counselors have you pay all of the debt on your balances, including interest, which is more beneficial for your credit score down the road. At the outset, credit counseling was developed for credit card providers to recover funds from consumers who were not current on their repayment schedules. What this means is many credit card counseling programs are affordable. Do you owe more than $10K in debt or have monthly payments related to rent, loans, or credit cards that use up 50% your pay? Then you might need to take part in a debt management plan (DMP). Why consider a DMP? Firstly, you may be able to enjoy:

  • Reduced APR’s
  • Reduced Debt Collector Telephone Calls
  • One Payment On a Monthly Basis
  • Faster Way out of Debt

Under any debt management program in Ohio, the credit counselor will take care of paying the credit card companies every month. The only thing you’ll have to do is make sure they get the fixed payment amount.

Debt Settlement in Ohio

Reducing your credit card debt is best entrusted to an established debt settlement firm. Debt settlement involves agreeing to pay back part of your original debt, but not all of it. Debt settlement may not be nuclear physics, yet it’s better left to an experienced professional. To start with, a debt professional will review your debt profile and help you put together a comprehensive strategy. Next, they will call your credit card providers. When an amount is accepted by both parties, you will be required to pay the settlement if you’ve got the money on hand, or start saving to pay what you now owe. You shouldn’t be charged by your settlement company until the following guidelines have been met:

  1. The first balance has been handled.
  2. You have a written agreement with them.

Before you move forward with debt settlement, there’s something you have to know:

  • Bad for your credit rating.
  • Debt never totally paid back.
  • Credit card companies can deny settlement.
  • Debt mounts while negotiations are under way.
  • Calls from debt collectors may not decrease.
  • Drawbacks at tax season.

Comparison of Debt Relief Options

Question Credit Counseling Debt Consolidation Loan Debt Settlement
One Monthly Payment? Yes Yes Yes
Actual Debt Reduced? No No Yes
Reduced APR? Yes Yes No
Valuable Asset Necessary? No Yes No
Bad for Credit Report? No No Yes
Fewer Calls from Debt Collectors? Yes Yes Maybe
Works with Credit Card Debt? Yes Yes Yes
Suited to Independent College Loans? Yes Yes No
Appropriate for Physicians Bills? Yes Yes Yes
Appropriate for Business Debts? Yes Yes Yes
Suited to Modest Debts? Yes Yes Yes
Better Than Bankruptcy? Yes Yes Yes
Lump Payments Necessary? No No Yes
Potential Tax Advantages? No Yes No
Signed Contract Necessary? Yes No Yes