The top source of debt for people in Ohio is mortgage debt, according to a survey by GOBankingRates.com. Ohio residents are not unique in their debt struggles, as residents of 41 other states also reported that they hold most of their debt in mortgages. People who reported that they have mortgage debt owe an average of $59,500.
Ohio residents say that mortgages are their top source of debt despite having some of the lowest median mortgage payments in the country. Residents of Missouri and Indiana, states that also have relatively low monthly mortgage payments, also listed mortgages as their top source of debt. Though residents of Vermont said that mortgage or rent payments are their top source of financial stress, they did not list mortgages as their top source of debt.
After mortgages, student loans were the second-biggest source of debt for people who were surveyed by GOBankingRates.com. Residents of seven different states including Colorado, Texas and Michigan said that debt from student loans is their biggest source of debt. Medical debt is the leading source of debt for people in Arkansas, Mississippi and Vermont while residents of Arizona and Wyoming hold most of their debt on credit cards.
When people get behind on their mortgage payments, their homes could go into foreclosure. To stop the foreclosure process, a homeowner may choose to file for Chapter 13 bankruptcy. Filing for bankruptcy can also prevent electricity from being shut off, and it can stop creditors from pursuing collection attempts. However, not everyone will qualify for this form of personal bankruptcy, and an attorney can outline the eligibility and other requirements.