Some Wisconsin residents are reluctant to file for bankruptcy protection because they are afraid that it will permanently affect their credit scores. However, by taking the right steps, it’s possible to rebuild credit after filing for bankruptcy.
While some see credit card debt as a sign of irresponsibility or foolishness, a new report from the think tank Demos shows that this is an unfair assessment of people who routinely carry over credit card balances from one month to the next.
In the wake of the economic recession, Americans guarded their pocket books closely and shied away from using credit cards for purchases. However, according to a recent report on consumer spending from the Federal Reserve, Americans are once again racking up debt.
It is often assumed that people who get in over their heads with credit card debt do so by spending irresponsibly, making lavish purchases or buying things they know they cannot afford.
As we began discussing in the last post, bankruptcy can do a lot of damage to a person's credit score and stays on their credit report for up to 10 years. However, the good news is that individuals in Wisconsin and elsewhere can start rebuilding their credit soon after receiving their bankruptcy discharge.
Wisconsin residents who find themselves in over their heads with debt may consider filing for bankruptcy as a way to clear their debts and start fresh. However, one of the biggest concerns individuals considering bankruptcy have is how it will affect their credit.
One of the most important thing for people who have credit cards can do is to check their statements to ensure they are only paying for charges they made. Fraudulent charges on a credit card statement can make it difficult to pay off credit card debt. A recent credit card scam involves a very small charge that some people might not even realize has been made on the credit card. Wisconsin residents should make sure to check their statements for a charge of less than $10.
Within the past couple of decades, debt consolidation has become a popular way for many consumers in Wisconsin to get their finances back on track. When you over-extend yourself due to unforeseen circumstances, loss of a job or lack of planning skills, combining all financial obligations into affordable monthly payment may be the most effective venue. Each state has its own laws, but several options are available to alleviate or reduce the debt presently owned.