In a Nutshell

Consumer debt is rising to unprecedented levels, outpacing wage growth and leaving many Ohio residents struggling to meet monthly expenses amidst an inflationary economy. Using credit cards and loans to stay afloat, Ohio consumers need options to overcome interest charges and other fees and to help them pay down huge debt balances if they’re stuck in a cycle of late or missed payments.

Thankfully, there are options for debt relief in Ohio. Read on to learn more about how Buckeye State residents can reset their financial situations through the best debt relief programs available today.

Your Options To Get Out of Debt in Ohio

Credit Counseling

Credit counseling programs offer advice on overcoming debt and managing your credit history.

How It Works in Ohio
Certified credit counselors operate across the state of Ohio through nonprofit and private organizations.
Pros
Credit counseling provides sound financial advice from an unbiased source for a small cost.
Cons
A credit counseling program won’t end your debts and may require you to commit to a financial education program to receive services.
Cost
Credit counseling often costs less than any other program offering debt relief. Low-income residents may even qualify for reduced or no-cost services.
Stats
Although credit counseling can help mitigate financial hardship by teaching you better money management techniques, more consumers in serious debt opt for debt settlement as a solution.
Resources
Use the Financial Counseling Association of America’s search tool to look for credit counselors in Ohio.

Debt Management

Buckeye State residents with multiple debt balances, such as student and personal loans, may benefit from reorganizing their payments through a debt management program.

How It Works in Ohio
Ohio residents can choose to create a debt management plan (DMP) with a nonprofit credit counseling organization or a private debt relief company.
Pros
DMPs take some of the stress of making payments off your shoulders since the organization distributes your payments to each of your creditors each month on your behalf.
Cons
Programs charge monthly fees for administering debt payments and often require you to close out most of your credit card accounts to reduce potential spending.
Cost
Ohio’s Debt Adjusters Act of 2004 stipulates that debt adjusters may not accept more than $75 for initial consultation fees. It also regulates the amount a debtor pays each month to no more than 8.5% of a DMP participant’s total monthly payments or $30 (whichever is greater).
Stats
In 2023, Ohio residents carried an average consumer debt of $75,243.
Resources
Read more about the benefits and drawbacks of debt management programs and how they compare to other Ohio debt relief programs.

Debt Consolidation

Consolidating your debt allows you to pay off your balances and reorganize payments through a lower-interest consolidation loan or a balance transfer credit card, which offers a low or 0% interest promotion for the first 12 to 18+ months the card is open.

How It Works in Ohio
Buckeye State residents with “fair” to “good” credit (a FICO score of 680+) are more likely to qualify for debt consolidation loans at a lower interest rate. Ohioans choosing to open a zero-interest balance transfer credit card should plan to pay off debts within the introductory period to avoid the credit card’s terms resetting to its much higher interest rate.
Pros
Balance transfer credit cards offer a quick solution for paying off small balances with no interest charges. Debt consolidation loans, however, give you more time to pay off the new loan balance, offering you not only a fixed loan term, but often a lower fixed interest rate as well.
Cons
Interest fees for both consolidation loans and balance transfer credit cards (after the promotional interest rate expires) can cause you to pay more for your debt overall if it takes you longer to pay off your balance.
Cost
Balance transfer cards can cost a lot in interest if you don’t pay your balance in full within the zero-interest period, with some cards charging a standard interest rate of up to 29.99% APR on any amount carried forward into the next billing cycle. Since debt consolidation loans take longer to pay off, it’s important to determine your total cost by calculating the length of your loan, your monthly payment, and your interest rate to see how much you’ll pay in total.
Stats
Ohioans have an average credit score of 716, putting many residents in a good position to secure lower interest rates.
Resources
Brad Reichert, founder and managing director of Reichert Asset Management LLC, offers some advice about determining interest rates on your credit card.
“To more easily find these standard purchase and cash advance interest rates that will apply to your balance, you can refer to a legally required summary of the terms, interest rate(s), and relevant account fees and charges that will apply to your new credit card,” he explains. “This summary of terms and conditions will be provided in a neatly organized and highlighted section of your application and your new credit card’s account documents once you open an account,” Reichert adds.
To find out more about a traditional consolidation loan, read our list of the 5 best debt consolidation loans in 2024.

Debt Settlement

Often viewed as the best program for reducing debt quickly and effectively, debt settlement involves working with creditors to reduce a large portion of your total balance when you agree to pay a negotiated lump sum. Once enrolled in a program, Ohio residents will save up for this payment over several months, either on their own or with the help of an organization.

How It Works in Ohio
With many Buckeye State residents struggling to pay off high credit card balances and other unsecured debts, debt settlement can save Ohioans an average of 55% of their total debt when settling with a company such as TurboDebt.
Pros
Debt settlement typically helps you pay off debt quicker and for less than what you owe.
Cons
The settlement process can cause your credit score to drop significantly while you’re going through it because it typically involves stopping payments to your creditors while you save up for your lump-sum payment.
Cost
Settlement fees cost 15-25% of your total debt when you work with an organization. Otherwise, you’ll need to save money on your own to make a lump-sum payment to your creditor(s), with the total cost depending on your balance.
Stats
Ohioans carry an average credit card debt of $4,931, making debt relief solutions essential for many residents.
Resources
Learn about debt settlement and how it can help alleviate large unsecured balances.

Bankruptcy

Filing for bankruptcy involves taking legal action to repay and reorganize debts through one of Ohio’s regional bankruptcy courts.

How It Works in Ohio
As a last resort, Ohio consumers can file for Chapter 7 or Chapter 13 bankruptcy to alleviate debt burdens.
Pros
Filing for Chapter 13 bankruptcy can help you pay off debts through a court-structured plan without selling your assets. In Chapter 7, some debts may be forgiven through the court after selling off your non-exempt assets to repay your creditors.
Cons
Bankruptcy severely impacts your credit history for up to 10 years.
Cost
Filing for bankruptcy can cost up to $5,000 in attorney fees, plus court costs for the various documentation processing and procedures involved.
Stats
In 2023, Buckeye State residents filed 15,587 bankruptcy cases.
Resources
Learn how to save money when you file for bankruptcy.

What You Need To Know About Debt in the State of Ohio

Statute of Limitations on Debt Collections in Ohio

Although debts don’t disappear after Ohio’s Statute of Limitations on debt collection expires, creditors can no longer pursue legal action against residents once this period is up. Here’s a look at the amount of time collectible for each type of debt:

Type of Debt Agreement Length of Time Collectible
Written Contracts6 years
Promissory Notes6 years
Open-Ended Accounts (including credit cards)6 years
Oral Agreements6 years

Statute of Limitations on Medical Debt in Ohio

The Statute of Limitations on medical debt also lasts six years in Ohio. However, unpaid medical bills can still cause financial hardship for many individuals and families in the Buckeye State. This is why Ohio consumers seek debt relief options like settlement, consolidation, or DMPs to overcome large balances and start fresh financially.

Student Loan Forgiveness in Ohio

Ohio residents carry an average student loan debt of $34,025. With consumer debt soaring, many Buckeye State citizens find it challenging to repay debts that even bankruptcy can’t resolve. Ohio’s Student Loan Center offers a resource for student borrowers to calculate repayments after graduation.

While Ohio doesn’t offer a state-funded student loan forgiveness program, graduates may still qualify for federal assistance programs.

Resources for Financial Assistance in Ohio

Government and state-level debt relief programs in Ohio involve cash and food assistance, plus other resources for low-income residents or those struggling financially.

Here are some of the top financial assistance programs facilitated by the Buckeye State:

  • Unemployment Benefits: Ohio provides temporary wage assistance for residents who’ve lost their jobs and are seeking work.
  • Food Assistance Program: Ohio administers the federal SNAP program to needy families through state-run food assistance services. 
  • Home Energy Assistance Program: This one-time benefit helps residents cool their homes during the heat of the summer months. 
  • Cash Assistance: The Ohio Works First Program offers cash assistance to residents through the federal TANF program.

Even though Ohio stimulus checks are a thing of the past, you may still be able to get checks from the IRS issued during the COVID-19 pandemic. And if you’ve been expecting your state tax refund and haven’t gotten it yet, there are several ways of checking the status.

Get Professional Help Paying Off Your Debt Through Top Ohio Debt Relief Programs

Qualifying for federal and state assistance programs may not be enough to overcome a huge debt load. While you may receive temporary assistance for emergencies, addressing the root of your debt problem is the only way to gain true financial freedom.

That’s why TurboDebt offers Buckeye State residents solutions for unsecured debts. Thousands of Ohioans have already enrolled an average of $21,618 into our customized debt relief programs. Read 5-star TurboDebt reviews on Google and Trustpilot to see what our clients from Ohio and beyond have experienced.

How TurboDebt Helped Ohio Residents With Debt Relief Last Year

Determining if you qualify for debt relief services only takes a few minutes. Contact us today for a free consultation.