With millions of people living in Ohio, it’s an all too common occurrence for many to deal with debt problems. Most Ohio residents have admitted to taking out loans and credit cards without first doing enough research to find better rates. Others have taken out too many credit cards, resulting in surmounting debt that has overtaken their lives. Debt consolidation, relief and counseling is specifically designed to rid you of existential debt to help you get back on your feet.
Debt Relief Laws and Regulations in Ohio
Ohio’s Debt Adjuster’s Act, also known as DAA, has put strict laws and regulations on debt counseling services throughout the state. The act prohibits companies from charging an advance fee, threatening collections for unpaid debts and preventing debt settlement services that are not done in-person or over the phone. Law regulates how much a company can charge you for the initial set-up and maintenance. Residents in Ohio should never pay over $75 in the form of a first-time customer fee or more than $100 annually to continue these services. One of the most important acts of the DAA is its regulation of creditor distribution. No more than eight and a half percent of total debts can be paid out to creditors each month.
Socioeconomic Data for Ohio
The median household income for families in Ohio is $49,000, with many residents earning less than this and living under the poverty level. Over four and a half million residents in the state are employed while thousands of people go without jobs each year. Most people living in Ohio work in the automotive and industrial industries, which has helped the state become one of the most progressive in the country.
Wealth and Poverty Levels in the State
There are about 18,000 families living under the poverty level in Ohio. More than 100,000 individuals living on their own or with relatives are also under the poverty level. The wealthiest cities in Ohio are Terrace Park and Gates Mill. The Ohio cities most impoverished are Cleveland and Dayton. Ohio residents owe, on average, $7,000 in debt that has been accumulated from credit cards and loans.
How Debt Relief Can Help Struggling Individuals
Debt relief is essential for getting out of the hole that has been created in your financial life. Debt can get out of hand relatively quickly, as all it takes is a few delinquent payments to start getting calls from collection agents. Debt counseling provides Ohio residents with a way to lump all of their bills onto one account. This lowers interest rates and prevents delinquencies due to unpaid bills. Debt counselors are trained to work with individuals of all income levels, providing them much-needed education on developing budgeting skills.
Prime Candidates for Debt Counseling
Viable candidates for debt consolidation can be anyone owing $5,000 or more in debt. Counselors work with all debt levels, ensuring that you are getting the care and relief that you need, whether you owe $1,000 to debtors or $1,000,000. If you’re struggling to make ends meet and are constantly being bombarded by collections agencies, you need to seek professional help.
Finding the Best Counselor for Your Needs
You need to find a crediting company that has a license to operate in the state of Ohio. It’s also important to be wary of companies that charge a consultation fee just to provide you with information regarding their services. The Debt Adjuster’s Act has prevented such companies from operating within the state, saving families from the headache that comes from paying too much just to settle their debts. Reputable companies will work with you to create a solid consolidation plan that works to eliminate arrears.