Having a tremendous amount of debt can be so overwhelming. You might have medical bills or you might have lost your job. Whatever the reason, bills can pile up quickly. Before you know it, you cannot pay your bills. You resort to credit cards and other loans to get you through each month. You quickly have accumulated a significant amount of debt. Getting out of debt takes time and effort. Many of the residents of Cincinnati are familiar with debt problems. Therefore, they turn to debt settlement to get their finances back on track.
What is Debt Settlement?
Debt settlement is a form of debt relief that involves negotiating with your creditors to settle your debt for an amount less than you owe. If you fall behind on your bills, creditors might be willing to settle for a lesser amount. They would rather get some money rather than have you file for bankruptcy and get none. Only unsecured debts will qualify, so debts secured with your car or home do not qualify for debt settlement. You will make a deposit into your account, and as money accumulates, a debt settlement company will pay your creditors. Debt settlement companies are not allowed to charge you any up-front fees. If you do not wish to hire a debt settlement company, you can try to settle the debt on your own.
Who Qualifies for Debt Settlement?
To qualify for a debt settlement program, you must prove that you can make monthly payments into an account. The monthly payment amount should be much lower than the amount you owe your creditors. You must owe at least $7500 in unsecured debt, and you usually need to be behind on your bills. Some creditors require you to demonstrate to them that you are experiencing financial hardship.
Ohio Debt Relief Laws
Laws are in place to protect consumers from unfair practices. The statute of limitations in Ohio is 6 years, so the creditor cannot sue you after the time has passed. Creditors in Ohio cannot be deceptive or misleading when attempting to collect a debt. Debt counseling companies must register with the state in order to practice. Collection agencies cannot contact you if they know you are represented by an attorney, and they cannot call before 8:00 in the morning or after 9:00 at night. They cannot contact you at your place of employment if you have told them not to. You have the right to cease all communication if you have done it in writing.
Wealth and Poverty in Ohio
The average credit card debt in the state of Ohio stands at about $5,500, and the average credit score is 679. The unemployment rate is 4.7%, which is the lowest in recent memory. More people are moving from Ohio than are moving into the state. Bankruptcy filings are among the highest in the nation. In terms of population, it is the 7th largest in the country. The state’s economy struggles. https://www.development.ohio.gov/files/research/p7005.pdf states that 14.8% of the people of Ohio are living in poverty. However, the number of people living in Cincinnati stands at 34.3%, which is way above some other parts of the state.
Socioeconomics in Cincinnati
In Cincinnati, 47.2% of the population are male, and 52.8% of citizens are female. 53% of the people are white, 42.9^% are African American, and only 1.3% are Hispanic. 27.9% of the population have a bachelor’s degree, and 17.3% have a graduate degree. The average household income stands at around 68,000. The crime rate in Cincinnati is above the nation’s average.
Benefits of Debt Relief
If you would like to pursue debt settlement, the option offers numerous advantages. Some of the benefits include:
- An alternative to bankruptcy
- Get out of debt faster
- Lower monthly payments
- Alleviate stress
- You will pay much lower than what you owe
- Stop calls from creditors
Cincinnati Resources for Debt Relief
Cincinnati offers numerous resources to people who are dealing with a significant amount of debt. You might choose credit counseling, debt consolidation, or debt settlement. If you get a professional to settle your debt, make sure you find a reputable company. Companies should not charge you an up-front fee, and they should not promise a quick fix.
Cincinnati is home to professional sports teams, interesting museums, and awesome restaurants. People who live in the city should be able to enjoy the atmosphere of Cincinnati without being burdened by debt. Debt settlement can help you get out our debt, so you can experience a life of financial freedom.