Northeast Ohio Bankruptcy Law Blog & News

Ohio residents who carry credit card debt could be interested in these facts according to the Federal Reserve. Total U.S. credit card debt as of September was $881.8 billion. U.S. mortgages and student loan debts are the first and second highest U.S. consumer debt, but credit cards are a close third. Households with such debts typically owe and average $15,608.

According to some measures, total U.S. credit card debt was down 3.33 percent when compared to the previous year. U.S. household average credit card debt was down 2.50 percent between the two periods. However, the decrease in indebtedness is mostly caused by defaults on credit card debt.

When people get into overwhelming credit card debt in Ohio, they may feel like the debt crept up on them. However, credit card debt is usually something that accumulates gradually before it becomes unmanageable. Because most people are given a low credit card limit to start out with, the trouble begins when the limit rises, and the credit card holder becomes tempted to overcharge.

Once an outstanding balance has climbed high enough, paying off credit card debt becomes harder because the interest on the debt compounds, and the minimum monthly payments are higher. Nevertheless, people with credit card debt do have options for getting out of debt. During the repayment process, it's important for debtors to limit their spending, prioritize high interest debts and refrain from making any more charges.

Ohio residents may benefit from learning what to do if a creditor or collection agency were to ever file a lawsuit against them. Consumers who have been sued typically benefit from seeking legal counsel with experience in issues concerning debt collection and the Fair Debt Collection Practices Act. Whether the defendants choose to enlist legal representation or not, they are still required to respond to the lawsuit by the date listed on the court document.

Court officials will require the creditor to furnish proof of the alleged debt that the defendant owes. Debtors who disagree with the claim can dispute the lawsuit by filing a response before any final judgment is issued. Notice of the lawsuit is typically sent via certified mail. People who choose to ignore the lawsuit will most likely have the judgment go against them and be liable for the full amount requested by the creditor.

As many people in Ohio may know, many cancer survivors, especially younger individuals, may face years of debt due to medical treatment expenses. According to a study presented at a recent meeting of the American Society of Clinical Oncology, approximately 33 percent of cancer patients who were surveyed reported being faced with large medical bills.

The study was conducted among 1,600 individuals who had received treatment for cancer. Participants in the study reported 27 percent faced bankruptcy or high medical debt while 37 percent had to delay retirement or take extended leave because of cancer treatments. The study participants included 14 percent who were in treatment, 46 percent whose treatment ended less than five years ago and the remainder whose treatment ended more than five years ago. The individuals currently under treatment reported financial hardship at twice the rate of earlier survivors.