How to Settle Debt in Ohio

Settling your debts in Ohio can help you eliminate delinquent credit card bills and other unsecured accounts. Secured debts, such as auto loans and mortgages, cannot be resolved through debt settlement. Many people in Ohio consider debt settlement, according to Ohio Attorney General Richard Cordray. However, in 2010 Cordray warned that people should avoid for-profit debt settlement companies because of their high fees and often unethical behavior. Instead, settle your debts yourself.

Instructions

1

Prepare for debt settlement by seeking counseling from a nonprofit credit counselor in Ohio. Find a government-approved counselor by visiting the website of the U.S. Trustee Program (see Resources). Examples include Consumer Credit Counseling Service of the Midwest, with locations in Akron, Cleveland, Warren, Medina and other cities throughout the state.

2

Ask the counselor about the debt-settlement process. The SmartMoney website reports that, generally, accounts must be at least three months behind before creditors will agree to debt settlement.

3

Call your creditors. Tell them that you can no longer pay your account as agreed and would like to settle. SmartMoney reports that creditors will often settle for 20 to 75 percent of the balance, so make 20 percent your initial offer. Continue negotiations until you have an agreement you can afford.

4

Get the agreement in writing before paying. The agreement should include a stipulation that the account will be considered "settled for less than the full balance" once you pay.