The Buckeye Institute says two Ohio government bills will help Ohioans get out of debt
The Buckeye Institute, a think tank that aims to advance free-market public policy in the United States, released a memo on November 6, stating that Senate Bill 256 and House Bill 534 could help Ohio families manage their debt more effectively.
“Household debt has reached record levels across the country, and young Ohioans, according to recent Federal Reserve reports, now face above-average debt loads,” Greg R. Lawson, a research fellow at The Buckeye Institute, said.
He also noted that Ohioans are struggling under an “increasingly heavy debt burden” because of “credit cards, medical bills, personal loans, along with rising property taxes, higher energy costs and historic inflation.”
According to Lawson, the state’s “ambiguous, outdated debt-adjusting laws bar or hinder many reputable settlement firms” from helping struggling Ohioans.
“Over-restrictive regulations force many into unnecessary bankruptcy or expensive out-of-state solutions, and deprive Ohio households of better, available tools for debt management,” he wrote. “Clarifying and modernizing Ohio’s debt-settlement law can enhance relief options for families without sacrificing consumer protections.”
Lawson stated that the two bills proposed by the Ohio Senate and House would “establish clear rules for debt settlement providers under the supervision of the superintendent of financial institutions.”
“They include rigorous licensing requirements, surety bonds of up to $50,000, detailed disclosures to consumers, and mandatory use of FDIC-insured accounts owned by consumers,” he wrote. “The legislation wisely ties fees to actual debt resolution outcomes and prohibits various deceptive practices known to harm clients.”
While Lawson praised the bills, he also criticized them. According to him, the lawmakers should re-examine and eliminate the new licensing components of the bills “unless it proves indisputably necessary.”
“Ohio’s household debt crisis demands practical, consumer-focused solutions. Clarifying the state’s debt-settlement law offers a responsible path forward by enhancing consumer choice. Senate Bill 256 and House Bill 534 take reasonable, necessary steps to help Ohio families seeking debt relief.”
WalletHub previously reported that credit card debt among Ohioans is rising at the fifth-fastest rate in the country, finding that while 19.66% of Ohio credit card payments were overdue in the second quarter of last year, the percentage increased to 28.65% in 2025.
According to the data, only Minnesota, Iowa, Kansas and South Dakota saw bigger increases in the credit card debt.
“While some level of delinquency is unavoidable, rising delinquency rates often signal broader economic strain,” the analysis said.
