Debt Settlement in Ohio

Columbus city skyline

Ohio Debt Statistics & Laws

The average consumer in Ohio carries $6500 in credit card debt, 25% more than the national average of $5,200, has a credit score of 690, and makes an average of $45,000 in household income.

The laws of the Fair Debt Collection Practices Act (FDCPA) help to protect Ohio consumers in a number of ways including limiting the maximum interest rate a collection agency can charge to equal the value of the federal short-term rate to the nearest whole percent + 3% (which would currently be 6%). The wage protection in Ohio is currently 75% of weekly earnings after income tax or a value equal to 30x the hourly minimum wage set at the federal level.

Ohio Statute of Limitations

For Ohio consumers, the statute of limitations sets the maximum time limit that a collection agency has to collect on a debt after it becomes delinquent. The length of time varies based on what type of debt is taken on and includes:

  • Open Credit Card Accounts: 4 Years
  • Oral Agreements: 6 Years
  • Written Contracts: 15 Years
  • Promissory Notes: 15 Years

The Process of Negotiating Debt in Ohio

How Does Debt Settlement Work?

Debt Settlement is a form of debt relief that works by negotiating down the balance owed (principal) on unsecured personal debt accounts. Unlike Debt Consolidation or Credit Counseling, a settlement is able to bring down more than just the interest rate.

By finding a compromise with your creditors, Debt Settlement can provide a much faster means of handling your debt in Ohio when compared to other types of debt relief available. Most banks & financial institutions are willing to accept much less than the total balance owed because the alternative is that they may lose the entire amount in a bankruptcy proceeding.


These types of debt are eligible for inclusion in a New Era Debt Settlement Program:


  • Credit cards
  • Department store cards
  • Signature loans
  • Personal lines of credit
  • Old repossessions
  • Other unsecured debts
  • Old judgments
  • Private student loans in default


The following types of debt are typically not eligible for Ohio debt settlement:


  • Home mortgages
  • Federal student loans
  • Car loans
  • Other secured debts
  • Credit Union debts
  • Medical / Hospital bills


Ohio Debt Settlement Services by City


  • Columbus Debt Settlement
  • Cleveland Debt Settlement
  • Cincinnati Debt Settlement
  • Toledo Debt Settlement
  • Akron Debt Settlement
  • Dayton Debt Settlement
  • Parma Debt Settlement
  • Canton Debt Settlement
  • Youngstown Debt Settlement
  • Hamilton Debt Settlement


This list is not exhaustive. Be sure to check with your Ohio debt counselor.


Ohio Debt Relief Methods

Below are brief descriptions of five debt relief methods that are used in Ohio.

1. Continue making minimum monthly payments.

If you can make minimum monthly payments, you may feel you’re doing the right thing by continuing that same path. But this just may be your worst strategy.

2. Enroll in a Credit Counseling or Debt Management Program.

Credit counseling is a type of debt management plan (DMP) where a single monthly payment is made to a credit counseling firm who then distributes the money to your creditors on your behalf. The benefit of this type of debt relief is that the counseling agency is often able to work out a lower interest rate with creditors so the debt can be paid off more quickly. The disadvantage is that you still end up paying back 100% of the principal debt plus the interest. The design of these programs results in 3 to 5-year repayment plans which have low completion rates in many states including Ohio.

3. Taking Out an Ohio Debt Consolidation Loan.

Debt consolidation is a type of debt relief where a debtor takes out a larger loan with a low-interest rate and then uses that money to pay off their unsecured loans with higher interest. Again, this type of debt relief does not work to reduce the principal balance, but only to reduce the amount of interest being accrued over time. When setting up with favorable terms and rates, this type of loan can help a debtor reduce their monthly payments into something more manageable. The real downside to debt consolidation is that the loans can be quite difficult to qualify for depending on your credit history.

4. Debt Settlement or Debt Negotiation in Ohio.

Piggy bank painted with Ohio state flagDebt settlement differs from the first two options in that the actual principal balance you owe is negotiated downward. Because you end up owing less, debt settlement is generally a faster and less expensive debt relief option than either debt counseling or debt consolidation.

5. Bankruptcy.

For the individual who cannot meet his or her debt obligations in Ohio, bankruptcy may be unavoidable. A formal declaration of bankruptcy stops the creditor collection process, and the debtor no longer owes some or all the unsecured debt.

Figure Out Where You Stand


Do you have a legitimate financial hardship condition?


Most debt problems in Ohio are caused by loss of income, medical issues, or divorce / separation. These are legitimate financial hardships that can happen to anyone through no fault of their own, and anyone of these situations can wreak havoc on a household budget.

Debt Settlement system is not a “free lunch” for people who don’t feel like paying their bills. If you are over your head due to a hardship circumstance, and you’d prefer to work things out with your creditors rather than declare bankruptcy in Ohio, then Debt Settlement can provide an honest and ethical debt relief alternative.


Are you committed to getting out from under your debt?


Debt Settlement is an aggressive approach to debt relief; and, as such, it presents an occasional challenge. Your level of commitment to staying the course, even when the road gets a little bumpy, often determines success. For those who are willing to see it through, debt settlement can get you through your financial difficulties faster and at a lower cost than any other debt relief option in Ohio.

Are your debts primarily from credit cards?

Most types of unsecured debt can be negotiated, including lines of credit, signature loans, repossession deficiencies, financing contracts, department store cards, miscellaneous bills and more. The deepest discounts, however, are usually obtained with credit card debts; so, if most of your debt load is comprised of credit card debt, you can anticipate good results from the Debt Settlement strategy.

Can I Trust New Era?


You can pick the good guys from the bad guys by asking 14 important questions. It is always a good idea to check with the Better Business Bureau for the company’s rating and complaint history with consumers in Ohio. New Era Debt Solutions is rated an A+ with the Better Business Bureau.

New Era has been helping Ohio consumers become debt free since 1999. We’ve settled more than $275,000,000 in debt and worked with thousands of clients. But don’t take our word for it. Visit our Testimonials page to read or listen to our clients’ stories in their own words.


Here’s what makes New Era different:


 No Upfront Fees. A Debt Settlement company should not charge you any fees unless or until they settle your debt. Period. This is not only the most ethical way to do business – per an FTC ruling effective October 27, 2010, it’s also the only legal way to charge fees.

  • No “add-on” fees. Some debt settlement companies try to get around the law by charging administrative fees, signing fees, consultation fees and various other excuses to get money from you. Good guy debt settlement companies such as New Era charge only a settlement fee, which you do not pay until your debt is settled.
  • End-to-end service. Some “debt settlement” companies you may talk with are only sales groups who will sell or pass your account off to a different company to handle your settlement. This means your financial data is being passed around and the sales person has no control over – or interest in – how your debt is settled. Look for a company such as New Era who will handle your program from beginning to end.
  • Experience. With the crash of the sub-prime mortgage industry in Ohio many new debt settlement companies headed by prior mortgage industry people suddenly popped up. These companies do not have nearly the experience or the relationships that lead to your best settlement deals. Look for companies who have been around long enough to amass a solid settlement track record. For example, New Era has been settling debts since 1999, and we’ve settled more than $275,000,000 in debt for our clients.

Get Started

Consumers in Ohio can get a FREE analysis of their debt. We will show you how much time and money you can save. Contact New Era Debt Solutions to get started.