In Ohio, many people struggling with debt are also facing the challenge of tax payments. When debts from credit cards and other sources start to pile up, it can be difficult to make tax payments. These missed payments will start to create tax debts and penalty charges that make a debt problem tougher. It may be possible to discharge some of these tax debts by filing for bankruptcy.
As many Ohio residents know, trying to provide for loved ones while trying to pay off debt may be difficult if one's financial status is undermined by unemployment or other factors. Deciding if bankruptcy is a way to overcome such a downturn may depend on specific situations.
According to the Federal Reserve in New York, two million Americans over the age of 60 have an outstanding student loan balance. Overall, the amount of student loan debt owed by those over 60 is $43 billion. This is up from just $5 billion in 2005. Statistics from a study done by Experian reveals that baby boomers also have the highest average number of credit cards and credit card debt.
Life changes might make accumulating credit card debt unavoidable, but paying it off as quickly as possible is important for one's financial future. Working to eliminate debt will result in lower overall payouts in interest. In addition, paying down debt lowers one's debt to income ratio, which leads to an improved credit score. Some of the ways to pay off debt faster could require making sacrifices, but the alternative might mean facing harassment from creditors, wage garnishments and long-term damage to one's credit.
Ohio residents may be interested to learn about how small debts can lead to big drops in their credit scores. Although many people believe that a debt under $100 may not affect a credit score very much, if it gets reported, it could actually end up lowering one's overall credit score regardless of how small it is. One mortgage lender commented that she noticed firsthand how a $65 medical bill lowered a man's credit score by 50 points.
Residents of Cuyahoga Falls or any other city in Ohio who are faced with overwhelming debt may want to consider filing for personal bankruptcy. Chapter 7, often referred to as liquidation bankruptcy, is often the best solution to stop creditor harassment, prevent foreclosure, eliminate debt and find a fresh financial start. What’s more, not all of your assets will be liquidated to pay creditors. Ohio law allows bankruptcy exemptions, including a homestead exemption.