Delancey Street

Finding Debt Relief in Columbus, Ohio

Debt is a growing problem across America, and Columbus is no exception. With rising costs of living and unexpected expenses, many Columbus residents find themselves struggling under high credit card balances, medical bills, and other debts. The good news is that Columbus offers several debt relief options that can provide a path to financial freedom.

The Debt Problem in Columbus

Recent statistics paint a concerning picture of debt in Columbus:

• Over 340,000 Columbus residents will have their medical debt forgiven through a recent $335 million medical debt relief program announced by Columbus City Council and local hospitals
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  . This massive amount of medical debt forgiveness highlights just how severe the debt problem has become in the city.

• Ohio residents owe over $16 trillion in total debt, including credit cards, medical bills, student loans, and more
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  . Much of this debt is unmanageable for families and individuals.

• The average credit card interest rate is around 16.7% nationally. Missing payments can cause rates to jump over 25% or even 30% 
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  . High interest quickly causes balances to snowball.

• Over 2 million Americans owe over $50,000 in credit card debt alone
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  . Large balances like this become very difficult to pay off.

• The unemployment rate in Ohio dropped from 5.1% to 4.5% in 2021, showing some economic recovery. However, many are still struggling from job losses earlier in the pandemic
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With high debt balances and rising interest rates, Columbus families need debt relief options to avoid bankruptcy and get back on stable financial ground.

Finding the Right Debt Relief Program

Several debt relief programs exist in Columbus, each with pros and cons to consider:

Debt Management Plans

• Work with credit card companies to reduce interest rates to around 8%, making payments more affordable
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• Offered by non-profit credit counseling agencies. Programs take 3-5 years to complete.
• Best for those with high credit card interest rates but enough income to make monthly payments.

Debt Consolidation Loans

• Combine multiple debts into one loan with fixed payments
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• Can lower monthly payments but lengthen repayment period.
• Interest rates vary based on credit score and lender.
• Best for those with good credit and steady income.

Debt Settlement

• Negotiate with creditors to pay a lump sum equal to 50-60% of debt owed
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• Takes 2-3 years of saving in an escrow account before settlement offer.
• Damages credit but allows debt payment under extreme circumstances.
• Best for those with large debt and few alternatives.

Nonprofit Debt Settlement

• Similar to debt settlement but with upfront agreed terms and no interest
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• Must be 180 days behind on payments and commit to 36 monthly payments.
• No interest charged during program.
• Best for those facing extreme hardship but able to make 36 monthly payments.

Bankruptcy

• Eliminates most unsecured debts like credit cards and medical bills
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• Damages credit for 7-10 years.
• Best “last resort” option if debt is completely unmanageable.

Consider factors like your unique circumstances, debt amount, income stability and credit score to choose the right program. Nonprofit credit counseling is always a great first step.

Beware of Debt Relief Scams

Unfortunately, many predatory companies exist that promise fast and easy debt relief but fail to deliver. Be wary of

:

• High-pressure sales tactics. Legitimate debt relief takes time.
• Requests for upfront fees before services are rendered.
• Unrealistic promises of debt elimination. Most programs take years.
• Requests for banking login or account details. Never share this info.
• Claims of affiliation with government agencies. These are scams.
• Refusal to explain your credit rights and options.
• Lack of written contract with terms and conditions.

Consult the Better Business Bureau and consumer protection agencies like the Ohio Attorney General to vet companies before enrolling in debt relief services

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Take Control of Your Debt

The first step is understanding your rights and options, from free credit reports to debt verification requests

. You can also call creditors directly to negotiate better terms or payment plans. Consider working with a nonprofit credit counseling agency to go over your full financial picture and create a household budget. They can help determine if debt management, consolidation or other options are right for you.While debt relief can sound daunting, Columbus offers many legitimate ways to overcome debt. Seek help from reputable sources, understand your rights and options, create a budget and payment plan, and take control of your financial future. Debt relief is possible if you make smart choices.

Helpful Resources

• AnnualCreditReport.com – Free credit reports
• ConsumerFinance.gov – Managing debt and credit rights
• FTC.gov – Debt relief options and consumer rights
• Ohio Attorney General – Debt and consumer protection
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• Columbus.gov – City programs and resources
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• Central Ohio Hospital Council – Medical debt relief updates
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Sources:

 Delancey Street Financial Services

 Columbus.gov

 BBB Study on Debt Relief Companies

 Columbus Hospital Medical Debt Relief

 Debt.org – Ohio Debt Relief Overview