Ohio Debt Consolidation

Debt Help in Ohio

Student loans, credit cards, medical bills – debt comes in all shapes and sizes. Ohio consumers who are struggling with overwhelming amounts of debt have many resources to turn to as they work their way out from under the control of the debt monster.

Ohio Credit Counseling and Debt Consolidation

Sometimes all a consumer needs to get out of the rut created by overwhelming debt is a little support and advice. Ohio credit counseling firms offer exactly that. These companies primarily focus on providing debt education and credit repayment counseling to consumers struggling with large debt loads. While some credit counselors will also negotiate for their customers, the primary focus of the best counseling firms is on education.

How can you find one of these excellent credit counseling firms? Start by choosing one that is also approved to work with federal bankruptcy cases. You do not have to be filing for bankruptcy to enlist the help of one of these companies, but knowing that the federal government has approved them will help you feel more confident in their ability to help you. To find this list, visit http://www.justice.gov.

When you meet with your credit counselor, ask about the options available to you to consolidate your debt. If your current debts have high interest rates, consolidation can help you save money by lowering the total amount of interest you pay and putting the debts into one loan program to help you better manage your repayment plan.

Ohio Debt Relief Programs

Sometimes consumers need a little more active help than what most credit counseling firms offer. A reputable debt relief program can offer this help by negotiating with your creditors on your behalf and implementing automatic repayment scenarios that make it more convenient to actively work on your debt. While these services can be quite helpful, some companies prey on desperate debtors by claiming to offer debt relief programs but offering little support and few services, all while charging a high price. Do your research before signing up with any program to ensure that it will deliver what is promised.

Ohio Debt Collection Laws

The state of Ohio protects debtors from predatory and abusive practices sometimes employed by debt collectors. They do so by conforming to the guidelines of the federal Fair Debt Collections Practices Act. Under this law, debt collectors are prohibited from certain practices, such as:

• Calling at inconvenient hours, usually defined as before 8:00 a.m. or after 9:00 p.m.
• Intentionally misleading a debtor, making him feel that certain actions will be taken if he does not pay the debt, when in fact this is not the case.
• Using offensive or profane language.
• Calling third parties and disclosing that the consumer owes a debt.
• Calling third parties repeatedly. Debt collectors may call to try to find your contact information, but in most cases can only do so once.
• Threatening to harm your reputation.
• Failing to disclose who they are and whom they are working for.

Debt collectors must inform you, in writing, of what you can do if you wish to dispute a debt. You have to contact the debt collector within 30 days of the first contact to ask them to provide proof that the debt is, in fact, your responsibility.

If you do not want to be contacted by a debt collector, send a letter requesting the contact to cease. Cessation of the contact does not rid you of the responsibility to pay the debt, but under the FDCPA, the debt collector must comply after you make the request.

Ohio’s state laws offer a few protections as well. If your creditors wish to garnish your wages, they must leave 75 percent or 30 times of the federal hourly minimum wage alone. Debt collectors are limited to charging the federal short-term interest rate plus three percent for their services.

You may end up getting sued for your debt if you are unable to pay it. Under Ohio’s statute of limitations law, your creditors must begin these legal proceedings in a set period of time. These time frames are as follows:

• Oral agreements – Six years
• Written contracts – Fifteen years
• Promissory notes – Fifteen years
• Open accounts (credit cards) – Four years

Ohio Mortgage Assistance Programs

Qualified homebuyers who need homeownership assistance may find help through the Ohio Housing Finance Agency (OHFA). OHFA supports first-time homebuyers and others find affordable mortgages and other housing solutions. If you are a military veteran or have not owned a home as your principal residence in the last three years, you may qualify for the first-time homebuyer loan program, which offers affordable rates on a 30-year loan. If you happen to be a member of the military or work in one of several community service roles, such as health care or emergency assistance, you can get your loan at a .25 percent lower rate through the Ohio Heroes Program.

Those who do not qualify for the first-time loan program may be able to get a federally backed loan through the Target Area Loan Program, which helps buyers purchase a home in areas in need of revitalization. Also, eligible borrowers may qualify for a Down Payment Assistance Grant of up to 2.5 percent of the home’s purchase price. To find out more about the OHFA home loan offerings, visit http://www.ohiohome.org.

Buyers who have low credit ratings may not qualify for the OHFA loan programs, because these loan programs do have minimum credit rating requirements. However, these buyers may be able to get a loan through the Federal Housing Administration. This loan program offers government-backed loans, so lenders do not have to focus as strongly on credit rating because the loan has government backing.

To help homeowners facing foreclosure, Ohio has the Save the Dream Ohio program. This program offers counseling and support through a website and toll-free hotline. To learn more, visit http://savethedream.ohio.gov/ or call 888-404-4674.

Ohio Debt Assistance Programs

The state of Ohio offers few other debt assistance programs. Always use caution with companies or businesses that claim they can cure your debt problems. Use these resources and work your way slowly out of debt.