The holidays are often a time where caution is thrown to the wind and money is spent to ensure happy memories. If you are anything like the average American family, you likely spent somewhere between $500-$1,500 on gifts this holiday season. Now that the holidays are over and the particles of wrapping paper dust have settled on the receipts, it's time to get serious about your plan to dig out of debt.
If you have accumulated a large amount of debt, your creditor may be able to garnish your wages. This can come as a surprise to some, but it is important to understand the process so you can take steps toward managing the situation.
Last time, we began looking at several alternatives to bankruptcy, including debt consolidation loans, debt settlement and credit/debt counseling. Another bankruptcy alternative for Wisconsin debtors is commonly known as a Chapter 128 proceeding. In such an action, a debtor establishes a personal receivership in which he or she may gradually reduce burdensome debts through a repayment plan.
A quick search on the Internet yields a great deal of information discussing alternatives to bankruptcy protection. The issue is clearly an important one, because bankruptcy is a big financial step to take, even for those who carry a burdensome debt load.
Debt problems can arise as the result of various circumstances. While some Wisconsin consumers may just have accumulated too much credit card debt, illness, unemployment and other dilemmas can also bring about overwhelming debt. Debt repayment problems may lead to some consumers falling for the marketing tricks of companies who promise so solve all financial problems instantly.
For many Wisconsin consumers, January is the month when holiday spending on credit cards must be faced. It is also the time when many people commit to proper debt management in the New Year. However, taking charge of overwhelming debt is never easy, and professional help may be required to work on drafting a workable debt repayment plan.
It is said that almost one-third of consumers nationwide, including in Wisconsin, accumulate debt over the holidays each year. In fact, financial professionals say many people are still paying off credit card debt from the 2013 and 2014 Christmas seasons. January is the time when debt repayment plans are typically made to pay off holiday debt, and there is never a lack of suggestions to achieve this; however, some plans may worsen the situation.
For many people who are facing serious debt problems, bankruptcy is not their only option. For example, there is a law in Wisconsin that allows residents to pay back unsecured debt over a 36-month period of time.