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.
For savvy credit card users, authorizing a child or spouse to use the card instead of opening their own account can help family members avoid credit card debt in the case of a death or bankruptcy. However, there are also pitfalls to this practice that both the authorized users and the original cardholder should take into consideration.
In the past, individuals and families struggling with debt were usually battling high credit card balances and interest rates. For the first time, student loans have taken the position of the number-one unsecured debt owed by Americans. According to the Federal Reserve Bank of New York, more than 11 percent of the $956 billion in current student loans are now in default. Credit card delinquency, on the other hand, has dropped in number for the last four years.