Credit Card Debt Relief In Wisconsin

August 20, 2019 Jonathan Gavalas

Debt relief wisconsin

Wisconsin has one of the lowest credit card debt burdens in the United States. Its average credit card debt is $4327. That is almost $100 less the average United States borrower’s credit card debt of $5235. 

This calculation of credit card debt burden is done through estimating the number of months it would take an individual to pay off the average credit card balance. A recent study estimated that it would take 13 months to pay off.  

Debt Relief Services Available in Wisconsin

Debt Management Program

There are various debt relief programs that are available for residents of Wisconsin who have trouble paying their large amounts of debts. The most popular one is debt management program. It entails a debt management firm talking to the creditors on the debtor’s behalf. 

 

They usually work together to lower interest rates. At the end, over balance owed is reduced. 

 

Debt Settlement and Debt Reduction Laws in Wisconsin

Debt settlement is one of the debt relief options in the state. Credit card debt settlement refers to methods used to reduce debts with a collection agency or creditor, with an agreement to pay back a portion of the original cash owed. 

 

The plan has proven to be effective because one pays less, but still the creditor recovers a fraction of their total loss. Individuals receiving less income are the most ideal to enroll in such programs. You can benefit from this if overwhelmed by debt or have medical issues. 

 

However, one may not need to request for credit card debt settlement in a case where the limitations statute is relatively high in his/her state (Wisconsin) and the debt does not appear on the credit report.

 Legally, Wisconsin’s credit firms and companies have to recover all debt within a given time as per the state’s stipulation, or the debt can no longer be recovered after the period elapses. 

Wisconsin Debt Consolidation

For people who are overwhelmed by multiple bills in Wisconsin, there are various options through which they can combine multiple debts into a single payment. By so doing, they are able to lower monthly payments and come up with a financial situation that is more secure and manageable. 

 

For individuals with excessive medical bills, credit card debt, store cards, payday loans and personal loans, enrolling in a Wisconsin debt consolidation program can really help.

 

 It helps in repaying one’s bills to reduce installments. Under the program, a Wisconsin debt consolidation company helps in negotiating with the creditors, therefore, reducing the interest rates. That gives relief from higher monthly payments and related burdens.

 

The debt consolidation program lowers individual’s rates and payment through paying off unsecured bills by an easy and single monthly payment loan. Enrolling in the program helps to make only one payment, instead of 7 or 8 in every month. 

 

A debt consolidation program helps Wisconsin residents to begin a new financial life through the following;

  • Helps you improve credit gradually
  • Leaves you with only one monthly payment plan
  • May help you in clearing out late fees and/or fines
  • Helps to reduce calls made by creditors
  • Helps in making lower monthly payments

Benefits of Wisconsin Debt Consolidation Program

  • Free counseling on Debt issues
  • Improves credit rating
  • Get rid of collection calls
  • Get debt free faster
  • Elimination/reduction of late fees
  • Requires only a single payment on monthly basis towards one’s debts and bills
  • One gets a plan for debt repayment from collection agencies and creditors
  • Reduction in Interest rates

 

There are two types of consolidation loans namely; secured loans (such as mortgage loans) and unsecured loans (such as personal loans).  From these, the debt consolidation program can only pay these kinds of bills;

  • Store cards
  • Credit card bills
  • Personal loans
  • Collection accounts
  • Medical bills
  • Other unsecured bills

Paying of student loans can be done through secured/unsecured debt consolidation loans

Wisconsin Chapter 128 Statute

There are debt relief programs that were established by Wisconsin for its residents. The Chapter 128 statute is a unique law that allows people in debt to virtually acquire the same type of legal protection against creditors as well as their collection agencies that are filing for bankruptcy. 

 

Individuals with a steady income can file Chapter 128 against their creditors. The programs operates through providing a plan as per  a court order that forces the creditors to accept debt repayment on monthly increment terms that are comfortable for the debtor’s income. 

 

Through the debt relief program, interest rates are discontinued which allows the debtor to repay the debt amount agreed upon without worrying about any extra fees. This has worked as a debt relief plan for many loans namely medical bills, personal loans, credit cards and civil judgments. However, home and vehicle loans are exempted.