If you find yourself in a position in which you are overrun by debt and unable to manage your payments, you have probably already started receiving phone calls from creditors and letters in the mail demanding payment. Some of these letters and calls may be to inform you that your creditors have initiated the repossession process, which is the process of reclaiming financed property.
Currently, retirement accounts are many Americans' largest assets. That's why some people are turning to their retirement savings to pay down credit card debt that has spun out of control. However, according to financial experts interviewed by CNNMoney, this is a risky endeavor that often backfires.
Chapter 7 bankruptcy is a debt relief option that is most common among consumers; however, small businesses, too, may choose to file for Chapter 7 bankruptcy protection in order to deal with overwhelming debts.
Bankruptcy isn't just for individuals who have gotten in over their heads financially. Businesses, too, can deal with their debt problems by filing for bankruptcy protection.
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 people in Wisconsin and around the country, understanding credit cards can help avoid financial downfalls. Due to their simplicity, credit cards make it almost too easy to create mountains of debt.
During difficult economic times, downturn, some Milwaukee residents may turn to credit cards as part of their fiscal survival strategy. On the plus side, a majority of people are making their credit card payments on time; just over two percent of people were more than 30 days late on their payments in the first quarter of this year. On the other hand, the Federal Reserve reports that outstanding credit card balances in the United States clocks in at more than $850 billion.