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Debt Consolidation Loans in Wisconsin
Wisconsin is a right-to-work state and it’s economy has done fairly well with only a 6.3% unemployment rate according to this data. The education rate has also been fairly good with over 87.7% of people aged 25 through 64 having achieved a bachelor’s degree. While many people in Wisconsin are able to get good paying jobs and decent wages, there are still people who struggle with going into debt. Debt is a scary thing when you become forced to confront it, but by being willing to face it and communicate with others about it you can make plans to overcome it and lead a happier life.
Debt Consolidation Is One Way To Overcome Debt
Debt consolidation can be a viable option to help pay down debt, but in order for it to work you have to understand what it is and how to formulate a payment plan. Debt consolidation involves taking out a loan to payoff existing debts such as credit cards and other bills. But as a loan that also means you’re going to need to have a realistic plan to pay the loan back to your lender. Simply taking out a loan while still continuing your current spending habits will not solve the problem, and in fact could leave you in even worse debt.
It’s best to consult with credit counselors or experts in finance before applying for a debt consolidation loan. And When you do apply for the loan, you need to make sure you’re borrowing from a reputable lender and that you’ve read all the small print in the loan about whether or not you’re pledging any of your personal assets up as collateral. Most debt consolidation companies will want some form of collateral especially if your credit score is low, but even if you can obtain an unsecured debt consolidation loan, be careful of high interest rates. You need to carefully have a budget planned and make sure you actually can make monthly payments on this loan on time so that you don’t see interest rates go up or pay penalties on the loan.
Debt Management Plans Are Another Way To Overcome Debt
Sometimes you can work out payment plans with your creditors that don’t involve a debt consolidation loan, but may involve paying smaller amounts off each month than what you’re currently paying. As long as you promise to pay the full amount of debt off and make payments on time, they may be equitable to it. If you’re having problems trying to work out a payment plan with your creditors, you might be able to visit a credit counseling or debt management center that can help you. They may be able to help you put together proof of payment means to show your creditors, or they may even help you by also speaking to your creditors and letting them know you’re in a credit payment program that will pay off all debt that they owe.
Credit counseling and debt management are not always synonymous as some credit counselors only help clients put together personal budgets and leave them to deal with the creditors on their own. But some do have experienced attorneys representing them who can reason with your creditors. Be careful about choosing a debt settlement company over a debt management company because unlike debt management, debt settlement could involve the stopping of payments to your creditors and instead putting payments in a savings account which when it becomes full is given to your creditors in hopes that they’ll accept a lower debt settlement. But they don’t have to accept it and if they don’t you could run the risk of getting sued.
Hiring An Attorney On Your Own
If, and only if you cannot reach an agreement on payment with your creditors and you’re more than confident you can make payments, it then might be a good idea to hire an attorney. It also might be a good idea to hire one if you feel the credit collection calls are becoming too intrusive and harassing. Creditors must abide by debt collection regulations when they call you in accordance with the Fair Debt Collection Practices Act (FDCPA) which you can find out more about at the Consumer Finance Protection Bureau (CFPB) website. But again, you’ll need to do your homework on the law firm and make sure they have a track record of success and experience in debt. Also, you should familiarize yourself with local Wisconsin debt laws to make sure you are taking permissible legal action.