Wisconsin Debt Consolidation

Debt Help in Wisconsin

Being in debt is never a good situation to be in. when you face overwhelming debt in Wisconsin, several state programs may be able to help you learn to manage and pay down that debt.

Wisconsin Credit Counseling and Debt Consolidation

One of the first steps you can take in a positive direction toward dealing with your debt is working with a credit counseling firm. Credit counselors offer accountability and support to teach you how to get out of debt, and sometimes even offer the hands-on support of setting up and managing your repayments. If you need someone to come alongside and help you through the difficult, time-consuming process of getting out of debt, consider a credit counselor.

Finding the right credit counselor sometimes proves challenging. Start by checking this list: http://www.justice.gov. These credit counselors and counseling firms have earned federal approval to work with debtors headed for bankruptcy in Wisconsin. You can avoid bankruptcy by going through their programs before you get to that point.

Do not be afraid to talk to your credit counselor about debt consolidation. You may find that it provides a workable solution to your debt problem. By consolidating, you can lump all of your debts into one debt product with a lower interest rate than the one you are currently paying, thus freeing up some money to pay down the debt even faster.

Wisconsin Debt Relief Programs

Debt relief programs in Wisconsin often take an active role in the repayment process. They may set up repayment plans and automatic debits that ensure debts are paid on time each month. They may negotiate better terms or a debt settlement to help you pay back your debt with less money out of your own pocket. Make sure that you understand the cost involved with these services if you choose to work with a Wisconsin debt relief program. Often the cost is quite high, and these are things you can actually do completely on your own without the services of a third party.

Wisconsin Debt Collection Laws

Wisconsin follows the federal Fair Debt Collection Practices Act, as well as offering its own state protections for debtors who face debt collectors at their door. Understanding your rights will help you stand up to the potentially abusive tactics these companies try to employ to get the money you owe to their clients.

In general, debt collectors may not threaten the consumer. This includes threatening:

• Criminal prosecution or arrest.
• Any action that is not intended to be taken against the debtor. For instance, threatening legal action if the original creditor does not intend to pursue legal action.
• Threatening to embarrass the consumer or harm his or her reputation.
• Threaten violence against the individual or his or her property.

The state law also prohibits debt collectors from contacting a debtor’s employer, with a few exceptions. This is slightly different than the FDCPA, which allows this contact provided it is just once a week and not prohibited by the employer.

When it comes to communication with the debtor, debt collectors:

• May communicate in person, over the phone, with a telegram, via fax, or through the mail.
• May not contact the consumer at odd hours, such as before 8:00 a.m. or after 9:00 p.m. in the consumer’s time zone.
• May not send correspondence that appears to be from the government or another official agency.

Wisconsin’s state debt collection laws apply to original creditors as well as debt collectors, which is different than the FDCPA.

If you wish to make the debt collection calls stop, simply contact your debt collector in writing and tell them that you do not want any further contact, as per the FDCPA. They must comply or risk being in violation of the law. You, however, are not free from paying your debt just because the debt collector stopped.

Your creditors have the right to sue you, but they must do so within the time frame set forth in the state’s statue of limitations. The statute of limitations in Wisconsin for debts is:

• Open accounts, like credit cards – Six years
• Written agreements – Six years
• Oral agreements – Six years
• Promissory notes – Ten years.

Wisconsin Mortgage Assistance

The Wisconsin Housing and Economic Development Authority offers a variety of loan programs to assist homebuyers realize the dream of homeownership. For instance, the Advantage Home Loan provides loans with little to no down payment requirement, which helps first-time buyers get over one of their main hurdles in the home buying front.

The WHEDA also manages a down payment assistance program. Some individuals may qualify for a grant of up to $4,000 for down payment and closing cost assistance if they are buying in counties the state wants to revitalize. In 2010 the counties that qualified for the grant were Brown, Dane, Kenosha, Milwaukee, Racine, Rock, and Waukesha. These grants are available on a first come, first served basis, so if you are interested in getting a home in one of these counties, apply early. To learn more about these and other loan products, visit www.wheda.com.

Sometimes credit rating is the primary hurdle an individual must cross to get a home. If you have a lower-than-average credit rating, consider one of the federally backed loan options. The VA, FHA, and USDA loan programs all offer low-cost, low-down payment loans that rely more strongly on your employment and income statuses than on your credit rating.

If your credit crises means that a foreclosure could occur, start by talking to a HUD approved housing counselor, which you can find at http://www.hud.gov. These counselors will help you understand your options and what steps you need to take to keep your home. Keep in mind that the earlier you start looking for help when it comes to foreclosure, the more likely it will be that you can actually keep your home. If you wait for the lender to come knocking, you may not be able to do anything to keep your property.

Wisconsin Debt Assistance Programs

If some of the debt you face is from medical bills, consult this document: http://dhs.wisconsin.gov. It provides relevant information about how to deal with medical bills as you work your way out of debt.