Americans continue to feel the weight of rising healthcare costs. The cost of obtaining healthcare is especially high for residents of Wisconsin. The cost of healthcare in the state is the second highest in the nation behind Alaska. The cost of 235 common medical services in Wisconsin was 81 percent higher than the national average.
Many families do everything they can to shield themselves from debt. Smart spending, living within their means, buying all types of insurance, putting money into a savings account and paying credit card balances off every month are great ways to create a financial cushion.
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.
Wisconsin residents who negotiated short sales with their mortgage lenders may be unknowingly suffering a greater negative impact to their credit profile than they initially anticipated. A recent inquiry has revealed that the current credit rating system is unable to distinguish between short sale and foreclosure. Because the system does not include a distinct code for short sales, short sales are often coded as foreclosures.