Ohio Debt Relief
16 MIN READ
Published April 14, 2023 | Updated October 02, 2023
In a Nutshell
With a population of over 11 million, many Ohio residents who face debt from credit cards, medical bills, and loans need debt relief help. In a densely populated state with a high percentage living in poverty, finding a way to overcome outstanding balances through a debt relief program gives you a chance to start saving money instead of falling behind on payments.
Read on to learn more about the types of debt relief options available for Ohio residents and get a picture of what debt looks like across the state.
Ohio Debt Relief Snapshot
Home to sites like the National Afro-American Museum & Culture Center, John Rankin and John Parker’s Underground Railroad safe houses, and the birthplace of many pioneering authors, astronauts, and presidents, residents of the Buckeye State are part of a rich heritage. One of the most populated states in the U.S., Ohio’s historical and cultural significance continues to this day.
Unfortunately, from Toledo to Cincinnati and Cleveland to Columbus, Ohio residents also struggle with debt. The COVID-19 pandemic and East Palestine railroad disaster have both caused a strain on Ohioans in the past few years. This shows in the state’s 13.4% poverty rate, which sits higher than the national average.
Ohio residents also carry high balances for student and auto loans in the midst of an inflationary economy. Thankfully, the state’s debt-to-income ratio sits at only 1.18, which means for every dollar earned, Ohioans owe only about 18 cents more than they make.
If you’re an Ohio resident struggling to overcome debt, you have options. TurboDebt offers solutions based on your financial needs to help you get back on track toward debt-free living.
Debt in Ohio
Read on to find debt statistics and learn more about Ohio residents' specific debt burdens:
Average Consumer Debt
This measurement combines outstanding balances from mortgages, auto loans, credit cards, and student loans to create a picture of how much people owe. Average consumer debt accounts for secured and unsecured debt, making collections, foreclosure, or repossession of automobiles a looming possibility for many.
In 2022, Ohio’s average consumer debt was $72,264. Mortgages typically make up the biggest chunk of consumer debt, but loan payments and outstanding credit card balances can make any amount of consumer debt difficult to manage.
Mortgage Debt and Housing Data
Ohio residents owed an average mortgage debt of $150,318 in 2022. For those not paying a mortgage, even the average renter spends 45% of their income on a rental property.
Ohio’s real estate market slowed significantly from 2022 to 2023, with home sales down 19.4% in February of 2023. However, home prices still rose 3.8% in the same month. With more buyers discouraged by the increase in prices and interest rates, real estate professionals predict continued sluggish sales in the Buckeye State. This reflects trends observed throughout most of the nation.
Student Loan Debt
Ohio graduates owed an average of $35,010 on federal student loans in 2021. This amounted to a grand total of $61.8 billion in outstanding loans for higher education for over one million residents of the Buckeye State.
Auto Loan Debt
Across the country, vehicle payments for both new and used cars have surpassed records as inflation, increased demand, and supply chain problems continue to impact availability. As of 2021, Ohio residents owed an average of 18,411 in auto loan debt.
Credit scores typically range from 300 to 850 using the widely accepted FICO rating system. Higher credit scores help you secure loans with lower interest rates and provide better financial options through banks and lending institutions.
Ratings above 670 are considered “good.” Ohio residents earned an average credit score of 715 in 2022 and 2021, falling well into the “good” range, making access to reasonable interest rates easier for many Buckeyes.
Average Income and Employment
As of February 2023, Ohio’s total unemployment averaged 3.9%, fluctuating around 4% for about a year after recovering from the pandemic high of 16.4% in April 2020. Trade, transportation, and utilities account for the largest employment sectors, with education and health services close behind. About 30% of the workforce holds a bachelor’s degree or higher.
Recent census data shows that Ohioans earn a median household income of $61,938 with a per capita income of $34,526.
Banking and Taxes
Ohio residents pay an income tax of up to 3.99%, depending on their total amount earned. Sales tax ranges from 6.5% to a high of 8% in Cuyahoga County (South of Cleveland).
Buckeyes put their money in 171 commercial banks totaling over $4 million in assets. Although the FDIC also reports that up to 4.5% of Ohioans are considered “unbanked.” This term refers to individuals who choose alternatives to commercial banking, such as payday loans which can result in high fees and lead to more debt.
Ohio ranks 17th in the nation for identity theft, with 30,950 incidents reported in 2022. Identity theft can result in the loss of assets as digital thieves steal information like social security numbers and bank accounts to commit fraud or take money.
Credit card fraud accounts for 43.7% of all reported incidents, with thieves making false charges or even withdrawing funds in the name of the cardholder. Out of every 100,000 Ohioans, 265 reported identity theft in 2022.
Although rates have steadily dropped since 2010, bankruptcy still impacts Ohio residents. In 2022, a total of 18,262 individuals filed for bankruptcy in The Buckeye State.
TurboDebt Offers Debt Relief for Ohio Residents
If you’re struggling with high amounts of debt, you’re not alone. We’ve helped thousands of Ohio residents manage their outstanding balances and reduce what they owe. Check out our current stats:
- Total clients helped: 4,359.
- Total clients enrolled in our debt relief programs: 1,557.
- Total amount of debt enrolled: $34,395,151.
- Average client debt enrolled: $22,091.
Take a few minutes to find out how we can help you manage your debt with a free consultation.
Types of Debt to Get Relief from in Ohio
The following areas create the most debt burdens for individuals and families:
Credit Card Debt
Once you’re deep in credit card debt, getting out can be hard. Americans are reaching new heights when it comes to credit debt levels. In 2022, total credit card debt rose to $986 trillion, a new high after pandemic numbers. Ohio residents are feeling the burden too, owing an average of over $5,000 in credit card debt.
Unpaid credit card balances can quickly spiral out of control with high-interest payments and late fees. Credit card companies typically allow you to pay back a minimum balance of 1-2% of the principal each month if you’re having trouble making ends meet. But this is usually an unsustainable option.
After months of paying toward your debt, you’ll still only bring it down to only a fraction of the principal. Here’s a look at what happens when you pay only the minimum on a $1,200 credit card balance:
|Month||Payment on Principal (1%)||Interest Fees (20%)||Total Minimum Payment||New Principal Balance|
TurboDebt offers solutions for credit card debt, especially for those with $10,000 or more in unpaid balances. Our debt relief programs are designed to help you manage and overcome outstanding credit card debts.
Costly and disruptive, divorce proceedings can leave you with more debt than when you started. Moving expenses, legal fees, and debts from former spouses quickly add up. In Ohio, divorce fees alone cost an average of $9,000.
After a divorce, one party may carry a heavier debt burden than the other, taking on responsibilities like car loans or mortgage payments. Court-ordered splitting of assets may also mean less financial stability and loss of income if you’re used to paying bills from a joint account.
At TurboDebt, we understand the nuanced situation of divorcees. Our advisors can help you manage the financial burden you carry after a divorce.
Medical debt is complicated. Insurance costs vary by carrier, and facilities charge different fees based on healthcare services. Because of these and other factors, 20% of American households carry outstanding medical balances.
Unpaid medical bills can roll into collections, leaving a mark on your credit. But large amounts from unexpected services may leave you feeling helpless as you struggle to pay off your normal monthly expenses. Billing mistakes can be frequent and often lead to debt that goes unresolved for months.
If you have medical bills piling up, let TurboDebt help. Our debt relief programs can help you find a solution like debt settlement to get you back on track toward saving, not owing.
The unpredictable post-pandemic economy has left many businesses struggling. In fact, 70% of small businesses had outstanding debt in 2021. If you’re combining business and personal debt as a company owner, you can easily exceed this number.
At TurboDebt, we’re here to help small business owners manage their debt. Get started with a free consultation to explore your options.
Homeowners often get into debt taking care of their properties. Insurance may only cover so much after damages caused by weather, theft, or other factors, leaving you with big repair bills. Some homeowners take out a home equity line of credit (HELOC) to borrow against their homes. This secured debt can cause you to go into foreclosure if balances aren’t paid. HELOC debt rose by 3.8% in 2022 as more homeowners financed their debt.
If you’re facing outstanding homeowner debt, consider using one of TurboDebt’s debt relief options so you can start rebuilding your wealth.
Ohio residents need an estimated amount of over $600,000 to retire comfortably in the Buckeye State. Fixed income budgets can quickly become strained when unexpected costs arise from items like health care services or home repairs.
Don’t struggle with debt in your golden years. Let TurboDebt guide you through a debt management program that fits your needs.
Types of Debt Relief
Consider the following debt relief solutions as you work to manage your outstanding payments:
If you’re carrying debts that far outweigh your income and you’re not sure how you can reasonably pay down your balance, debt settlement is an effective option. In a debt settlement, your creditors agree to settle on a specific payoff amount that’s less than the total you currently owe.
Although you can call your creditors to negotiate for yourself, using a debt relief organization can make it easier for you to secure a lower payoff and handle the administrative process. The organization typically sets up an account for you to deposit the money, which they use to pay the creditor on a monthly basis.
Another benefit of choosing debt settlement is the speed at which you can pay off your outstanding balance. You can typically accomplish your goals in two to four years, saving up to 50% of your total debt.
Another way to manage your outstanding debt is through a debt consolidation loan. In this form of debt relief, you take out a personal loan to cover the cost of your debt balances, whether that means multiple credit cards, medical bills, or a combination of accounts.
Once you qualify for the loan and receive a lump sum of money, you pay off all your creditors, leaving you with one loan payment a month. The advantages of using debt consolidation include eliminating multiple interest payments and simplifying your payoff structure.
If you struggle with remembering to pay multiple accounts every month, this option can help you organize your finances while saving you from paying various late fees or high-interest balances.
Credit counseling offers a personalized approach to debt relief. Unlike other debt-relief options, credit counseling is a form of advising tailored to your specific financial situation. During the process, you’ll meet with a credit counselor to accomplish one or more of the following:
- Setting a budget
- Learning financial strategies
- Making a plan to pay off debt
- Working with creditors to eliminate collection calls
- Negotiating lower interest rates
Credit counseling aims to equip debtors with the knowledge and tools to improve their financial health and avoid debt in the future. Both private and non-profit credit counseling agencies offer assistance based on your annual income and can help you make a reasonable payment plan for your outstanding debt.
Debt Management Plan
Often part of the credit counseling process, a debt management plan is a detailed road map guiding how you’ll pay off specific debts. Some creditors require a debt management plan before agreeing to lower interest rates or pursue settlement options.
A debt relief organization or credit counseling agency can help you create a plan that works for your financial situation. Once all parties agree on the plan, you’ll begin contributing to the specific monthly payment outlined in the document.
If you work in certain industries or qualify based on your income, you may get the opportunity to end your outstanding balances through debt forgiveness. Teachers are one of the main professions that benefit from student loan forgiveness through the Department of Education. Low-income families may also qualify to earn mortgage debt forgiveness through the Department of Housing and Urban Development.
Special programs through private industries also allow for other types of debt forgiveness. However, these opportunities are typically challenging to qualify for and may forgive only a portion of your debt. If you do meet requirements, even alleviating a portion of your debt may be the solution you need to work towards debt-free living.
Filing for bankruptcy is often a final option when it comes to managing high levels of debt. Because of the long-term impact on your credit score and future financial opportunities, choosing bankruptcy requires careful consideration and planning.
Individuals typically file Chapter 7 or Chapter 13 bankruptcy to liquidate or reorganize personal assets. This involves working with a legal professional to take your case to court, where a judge decides how much you can afford to pay and what debts can be canceled.
After paying legal fees and court-ordered settlements, you’ll get the chance to start over financially. However, your credit score can suffer for up to 10 years, making it hard to secure loans or any kind of credit in the future.
TurboDebt Can Help Ohio Residents Get Out of Debt
Debt struggles can affect your daily life, making it difficult to save, pay for essential items, and overcome financial-induced stress. If you’re stuck and not sure where to start, consider taking a few minutes to contact us for an initial consultation about our debt relief services. It’s free and will only take a few minutes of your time.
Finding a reputable company you can trust matters. Check out our hundreds of five-star reviews to learn how other clients managed their debt with help from our team. Whatever you choose, we hope you start your journey to living debt-free today.
Debt and Financial Hardship Resources for Ohio
If you’re struggling with debt and need immediate assistance for your living expenses or other essential services, use the resources below to find help:
Temporary Assistance Programs
- Ohio Works First: OWF Provides cash assistance to families for up to 36 months through the TANF program.
- SNAP: Ohio administers the federal Supplemental Nutrition Assistance Program to help families in need purchase healthy food.
- HEAP: Ohio’s Home Energy Assistance Program provides emergency cash assistance for heating and energy costs and repairs in the summer and winter months.
- Medicaid: Ohio’s Department of Medicaid provides healthcare assistance to individuals and families who meet certain qualifications.
Child Care Assistance
- Child Care Program: Ohio’s child care program supports parents who are working or in school by assisting with payments for child care services.
- Ohio Housing Locator: Run by the Ohio Health Department, the housing locator helps individuals and families find affordable, senior, temporary, or emergency housing and shelter.