Wisconsin residents who seek to improve their credit rating often focus on making sure they send in payments on time, but many do not realize that keeping their balances low is also important. Many people assume that as long as they are making on-time payments, they can rack up as much credit card debt as their balances will allow. However, keeping large balances on credit cards may prevent someone's credit score from improving or even lower it.
Many residents of Wisconsin who graduate from college do so with an enormous amount of debt. According to Fidelity, 70 percent of people who graduate nationally in the year 2013 have an average of $35,200 of debt. Additionally, in spite of the fact that the cost of college loans has gotten a lot of attention recently, 50 percent of the 2013 class who have student loans are surprised by how much debt they have accumulated.
Some Wisconsin readers may have questions about how their mortgage or bankruptcy proceedings are affected by divorce. One man got divorced in 2009 and had his name removed from the deed and had it put in his ex-wife's name. After signing over the deed, he filed for Chapter 7 bankruptcy, which was discharged in March 2012.
Wisconsin residents may be aware that medical debt is the leading cause of bankruptcy in the United States. According to a recent study by NerdWallet Health that used data from multiple sources that included the U.S. Census and the Centers for Disease Control, a total of 1.7 million people will declare personal bankruptcy this year because of debts related to medical expenses, accounting for about 60 percent of all bankruptcy filings. An estimated 56 million people will struggle with medical payments, 15 million people will empty their savings accounts to pay off medical debt, 11 million will use credit cards to pay and 10 million will have problems paying for basic necessities because of medical bills. The use of credit cards to pay for medical bills often accelerates the accumulation of debt because of their relatively high interest rates.