Dealing with Credit Card Debt
Looking at your credit card statement each month and noticing that your minimum payment is slowly creeping up is scary for most people. As the minimum payments go up, you have less money to pay your regular monthly bills, and you become more dependent on the credit cards for everyday living. The card that was supposed to only be there only for “emergencies” is now used for groceries and gas. For many Wisconsin residents, this is a reality that they have to face.
Some people will simply pay the minimum payments or let the bills go unpaid. Some may even stop paying their mortgage or rent because they cannot let the cards get shut off. Others may use up retirement savings to pay down the cards, chipping away at their retirement savings to live right now.
None of these are good ideas. If you only pay the minimum payments or miss payments altogether, you risk hurting your credit score. If you don’t pay your mortgage or rent, you risk losing the place you live. If you use up your retirement savings, you risk working long past retirement age. Instead, look into debt consolidation and bankruptcy options.
Although many people fear talking to a lawyer about their debt issues, most people have several options to help them deal with credit card debts. Debt consolidation, under Wisconsin’s Chapter 128 law, allows people to pay off credit card debts in a reasonable amount of time, interest free. Debt negotiation allows people to settle their debts for far less than they owe. Lastly, bankruptcy can allow people to either pay the debt back at pennies on the dollar or discharge the debt entirely.
Before you mortgage your future, talk to an attorney and see which option is right for you.