Debt collection agencies work for major creditors who need help locating and getting payments from debtors. Some types of debts that may place someone on one of these lists include unpaid medical bills, credit card bills and home or car loans. The Fair Debt Collection Practices Act limits when, where and how those credits can contact debtors.
Credit card owners in Ohio should know that credit card debt is not inevitable. Even though it is easy to fall into debt if one is not careful with one's spending, there are many things that a person can do to limit the negative effects of debt.
Ohio residents in debt may be interested in filing bankruptcy without losing some of their property. Filing chapter 13 bankruptcy allows an individual to keep their home while setting up a plan to pay their debts over a three to five year period. The period is determined by the debtor's income and debt level. A chapter 13 bankruptcy stops creditors from using wage garnishment or continuing foreclosure proceedings in an attempt to collect on outstanding debts.
When faced with debt collection, people may sometimes assume that the debt is valid and correct. However, this is not always the case. Companies can make mistakes, and consumers do have the right to request proof that the debt is valid and should be paid. People who have questions about a debt must follow certain guidelines in order to avoid problems later.
While an individual is typically only required to make a monthly minimum payment of interest plus one percent of an outstanding credit card balance, it could take years to pay off that debt completely. Only paying off the minimum monthly payment can stretch the payment schedule out, resulting in continued accrued interest, which would cost the consumer more money than necessary.
Individuals in Ohio who are faced with overwhelming debts may be seeking different avenues for relief and might consider filing for bankruptcy. Most consumers typically file for either Chapter 7 or Chapter 13 bankruptcy, and both processes include different benefits and requirements for eligibility. For example, Chapter 7, which might be referred to as liquidation, provides a discharge of certain debts, and Chapter 13, which is also known as the wage earner's plan, reorganizes the consumer's finances, providing that person with a chance to pay back the debts.
Ohio residents may be struggling with credit card debt and facing the prospect of bankruptcy as a result. Whether people are using credit cards to pay for necessities or to live above their means, there are a number of facts about the real cost of credit cards that might make people think twice about using them too freely.
One of the most common burdens faced by consumers in Ohio and across the U.S. is debt. Credit card debt can weigh on the whole family, and so many people are looking for solutions. Debt management, debt settlement and bankruptcy are the primary options available; each of them has its own unique advantages and disadvantages.
Ohio residents who are struggling with debt will not be surprised to learn that they are not the only ones who are. According to a new survey taken by a consumer financial services company, nearly 30 percent of Americans have more in credit card debt than they do in savings. Seventeen percent said they have neither savings nor credit card debt. Another 51 percent said they have enough savings to pay off their credit cards. That is the lowest recorded level for people who can pay off their credit card debt since the annual survey started in 2011.
Many Ohio residents have debt, whether it be in the form of student loans, credit card debt, a mortgage or some other obligation. When individuals do not have the means of paying off these types of obligations, it is usually advisable to let the creditor know. If a creditor sends a letter or a statement to a debtor demanding payment, and the notice is ignored, a creditor will often take faster action to collect the entire balance due.