Wisconsin Debt Relief

Disclaimer: **We are currently unable to enroll clients in Wisconsin. Please give us a call or check back again soon for updates.**

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In a Nutshell

Like many other U.S. states, Wisconsin has a significant debt burden. This debt shows in various forms, including credit card balances, student loans, medical bills, mortgage payments, and business debts.

With the average household debt in Wisconsin higher than the national average, many residents need help paying off their debts to achieve financial stability. Fortunately, there are various Wisconsin debt relief options available to residents that can help alleviate their financial burdens and get them back on track.

In this article, we'll explore the top types of debt people struggle with in the state, offer critical debt and financial hardship resources for individuals, and share some of the best debt relief options available in Wisconsin today.

Wisconsin's Economic Picture

Wisconsin is known for its milk and cheese production, public museums, and coastlines along Lake Michigan and Superior.

While Wisconsin's financial situation is stable, many residents still struggle to make ends meet, with an average consumer debt is $85,579. When compared to the median household income of $75,670, it can take a long time to pay off debts after accounting for all other normal expenses. Pursuing debt relief options can be a great strategy to alleviate debts and give residents a fresh financial start.

How Does Debt Relief Work in Wisconsin?

Debt relief comes in many forms. However, some of the most popular options involve the process of negotiating for a reduced payment, consolidating outstanding balances, or securing lower interest rates to achieve a debt-free life. These strategies work on different types of debts, including unsecured debt, personal loans, medical bills, mortgage payments, and credit card debts.

Wisconsin Debt and Finance Statistics

The following information about debt and finance statistics is specific to the state of Wisconsin:

Credit Card Debt

Wisconsin residents carry an average credit card debt of $6,082.

Student Loan Debt

Student loan payments are one of the most common types of debt that young people face, and Wisconsin is no exception. Wisconsinites with a bachelor’s degree and above make up 32.8% of the state’s population.

These residents are paying an average student loan debt of $32,628, with over half below the age of 35. 

Bankruptcy

In 2024, Wisconsin's total number of bankruptcy cases filed came to 9,461. This shows a 14.7% increase in the Eastern Bankruptcy Court and a 19.3% increase in the West.

Average Income and Employment

Wisconsin has an a per capita income of $42, 019.

With an steady and relatively low unemployment rate, Wisconsin held to 3% in December of 2024. 

Credit Scores

A good credit score of 670-740 is crucial in accessing personal loans or low-interest secured loans. Residents of Wisconsin carry an average credit score of 727, tied with New Hampshire for second highest in the U.S. Only Minnesota boasts a higher average at 730. 

While this allows residents to access low-interest loans, it also strengthens the state's creditworthiness. However, if you’re not prepared to pay low-interest loans back, they can quickly turn into a debt that you need relief from.

How TurboDebt Helped Clients with Debt in 2023

Here at TurboDebt, 2023 was a big year for helping people become debt-free in Wisconsin. We assisted a total of 3,147 customers, and out of that number, 922 enrolled in our debt relief program.

With an average enrolled client debt of $20,894, our professional team went on to save individuals an average of 54.69% of the principal amount of debt they owed before fees.

For instance, with a personal debt of $20,043, we could save you up to about $10,422 with our debt relief program. Get in touch for a free consultation to see how much we could save you today.

Top Types of Debt to Get Relief from in Wisconsin

The top types of debt covered in the Wisconsin debt relief program include:

Credit Card Debt

With a credit card debt lower than the nation’s average, Wisconsin residents are managing their consumer spending and utilizing their credit cards less often compared to other states. However, this doesn’t prevent credit card debt from accumulating due to late fee charges and compounding interest rates.

TurboDebt offers a Wisconsin debt relief program for credit card debt. We can help you tackle your credit card debt through our tailored program offerings. We can also recommend alternatives such as a credit counseling program to start your journey toward a debt-free life.

Divorce Debt

Wisconsin is a community property state, meaning that properties and debt accumulated during a marriage are shared equally among spouses. As a result, you may acquire divorce debt in Wisconsin if your partner has accrued debt without your knowledge or if you made a purchase together.

When you also consider the cost of divorce at a law firm in Wisconsin, which ranges from $11,300 to $100,000, it's clear how divorce debt may accumulate, especially if you're dependent on your partner for financial stability.

At TurboDebt, we offer our customers a debt settlement plan to help settle divorce debt.

Business Debt

Business debt comes from the money that you borrow in order to start and grow a business. It can accumulate from operational or expansion purposes. Business debt can also arise from unforeseen circumstances such as a lawsuit, disaster events like the pandemic, or a significant loss of clients.

TurboDebt helps our clients navigate the murky waters of business debt to avoid foreclosure or repossession of their business’s assets. Our debt relief plan provides a way to secure the future of your business by clearing your business debt with manageable monthly payments.

Medical Debt

The Consumer Financial Protection Bureau estimates that 20% of Americans carry medical debt. This includes 58% of bills in collections, making it one of the most difficult debt burdens to bear. 

Also, with 6.4% of its population uninsured, the residents of Wisconsin are more likely to accumulate medical debt to maintain their health or deal with an accident.

Avoid debt collection issues and live a debt-free life by sticking to a plan negotiated by our professional representatives at TurboDebt. 

Homeowner Debt

With an average monthly mortgage payment of $1,652, the bulk of most consumer debt in Wisconsin is homeowner debt. And while this is below the national average of $1,697, it still represents a large burden for Badger State residents. 

Although mortgage debt is secured, and ineligible for debt relief services, other homeowner expenses paid by personal loans and credit card charges do qualify for assistance through organizations like TurboDebt.

Retirement Debt

The average annual retirement income in Wisconsin is $24,989, while the average cost of living is $23,640. This makes financial stability difficult in your retirement years and could mean you accumulate more debt while on a fixed income. 

TurboDebt’s debt relief program is designed to help you break the cycle of debt. We can also advise you and provide tools for financial success. We want to enable you to make wise decisions when it comes to spending and saving to limit your chances of accruing more retirement debt.

Wisconsin Debt Relief Options

You can get debt relief in Wisconsin with the following top choices:

Debt Management Programs

Many organizations offer debt management programs in Wisconsin. Specialists offering debt management plans can advise you on how to make repayments without taking out another loan or incurring more outstanding balances. They use your debt-to-income ratio to determine how much you’ll pay each month toward ending your debts.

Qualifying consumers must be ready to make consistent monthly payments for 3 to 5 years. If you skip or delay a monthly payment, you risk losing your debt management plan.

Debt management plans may also help you lower your interest rates, saving you a significant amount in fees, and allowing you to pay off your debt faster than continuing to make normal monthly payments at a higher rate.

Debt Consolidation Loans

Debt consolidation loans can be considered a type of debt relief program, allowing consumers to access a single low-interest loan to pay off their high-interest credit card debts.

Residents of Wisconsin can also apply for the Chapter 128 Debt Consolidation program, which allows them to settle unsecured debt with a repayment plan lasting for three years. Advantages of the Chapter 128 program include stopping late repayment fees, increases in interest, and wage garnishment.  

Consolidation loans are most effective if you have a good credit score (above 700). Scores above 670 are also acceptable, while scores below that can make it difficult to secure a loan when it comes to debt consolidation in Wisconsin. Once you're on a debt consolidation plan, it's a good idea to limit your credit card use to avoid getting back into debt.

Once your loans are consolidated, you’re left with a single low-interest loan to pay off over a specified period of time. During debt consolidation, be aware of lenders who have predatory terms of low-interest rates in the first few months and then change to high-interest rates later in the program.

Debt Settlement

In debt settlement, the goal is to settle your debt for less than the total amount owed to your lenders or creditors. To complete this process, you can contact creditors or collection agencies on your own or work with a debt settlement company that negotiates on your behalf for a reduced payoff to clear your debt. 

If you work with an organization, you'll make an affordable monthly payment into an account managed by the company. The organization then pays your debt directly to the lender, collecting a fee for administering the account and securing the settlement. 

Here are the general steps typically involved in the debt settlement process in Wisconsin:

1. Assessment of the debt
2. Contact creditors
3. Offer a settlement
4. Negotiation
5. Agreement
6. Payment
7. Completion of the settlement

Debt settlement can be a complex and time-consuming process, and it's important to work with a reputable debt settlement company to ensure the best possible outcome.

Credit Counseling

Credit counseling works when a certified credit counselor advises you on the best alternative to handle your personal debt. Wisconsin credit counselors are trained in debt management, consumer credit, and budgeting.

Credit counselors offer free consultations on how to budget and pay off your debts. They’ll also help you navigate your credit report and determine your best course of action based on your score. Both nonprofit and private organizations offer credit counseling services for free or at a low cost. 

Bankruptcy

Bankruptcy is often the last step toward debt relief because it damages your credit report for up to 10 years. The bankruptcy process works by liquidating your assets to pay your creditors or coming up with a repayment plan using legal direction from the court system.

To qualify for Chapter 7 bankruptcy in Wisconsin, you must have an income less than the state’s median of $33,327, while Chapter 13 allows you to keep your assets and come up with a repayment plan that can last for 3 to 5 years. In Chapter 13, unsecured debt like credit card debt is cleared last.

You can file for bankruptcy in Wisconsin's western or eastern district bankruptcy courts. Your creditors have a 6-year window to file for a court hearing since the statute of limitations in the state ranges from 2 to 6 years, depending on the case. If you’re unsure of the bankruptcy case to file, consider asking for legal advice from a bankruptcy attorney.

Debt Forgiveness

To receive debt forgiveness, you'll need to qualify for a program offered through a public or private agency. Typically offered by government organizations at the federal and local level, debt forgiveness cancels some or all of your debt if you meet the requirements of the program. 

Common types of debt that qualify for forgiveness include credit card debt, payday loans, tax debt, mortgage, and student debt loans. You must qualify for a special program to be considered for debt forgiveness.

Debtors who get their debt forgiven pay zero fees to lenders, but they must file the amount of debt forgiven as income tax with the IRS. Ideally, lenders can forgive all or part of the loan or credit owed by borrowers.

Debt and Financial Hardship Resources

In Wisconsin, there are debt and financial hardship resources that help low-income or needy families provide for their basic needs, including affordable housing solutions, food, and healthcare services.

Some key state-run financial assistance programs include the following:

Temporary Assistance Programs

Temporary assistance in Wisconsin includes the Wisconsin Work (W-2) Program run by the federal government under the Department of Health and Human Services.

To qualify for the W-2 program, your household income must be 115% less than the poverty level. Other requirements include having a child less than 18 years, being pregnant, or heading a household when you’re less than 18 years old. The program assists you with financial help and support services, including employment preparation services.

Other assistance programs for needy and low-income families include noncustodial parent services, job access loans, emergency assistance funds, Transform Milwaukee jobs, and transitional jobs programs.  

At this moment, there are no stimulus check in Wisconsin, and probably they won't be in the near future.

State Health and Human Services

There are many programs dedicated to maintaining a healthy population in Wisconsin, especially for needy and low-income families, including the following:

• BadgerCare Plus is a healthcare coverage program curated for Wisconsin residents in need of assistance. The program uses income levels to determine your eligibility for the program.
• FoodShare Wisconsin is a supplemental nutrition assistance program helping low-income families buy food to maintain a healthy body. The program uses 200% and 130% household income limits to determine how much to allocate to the families.
• The IRIS Program helps the disabled and older adults in Wisconsin live their lives.
• Wisconsin's SeniorCare Program helps eligible 65-year-olds and above pay for prescription medicines and vaccines.
• Dementia Care is a long-term care program offered to the older population that suffers from dementia.
• Family Care is a Medicaid long-term healthcare program suitable for people with disability, people with lasting chronic illnesses, and older citizens.

Child Care

Childcare programs in Wisconsin include the following:

• Children’s Long-Term Support Program: This program aims to provide support for disabled children and their families to ensure that they live the best life they can in a community setting.
• Wisconsin Shares Childcare Subsidy Program: This program is offered for working families struggling to meet their children’s needs. The program offers support by covering part of the monthly costs associated with child care.

Shelters for the Homeless

Wisconsin has several homeless shelters and transitional housing opportunities available for the homeless in the state. These homeless shelters experience long waiting lists. Therefore, you need to confirm their availability before getting there.  

Free Transportation Services

The state of Wisconsin has a County Elderly and Disabled Transportation Assistance program that gives counties financial aid to offer transportation services to the elderly and the disabled.

Also, its residents can access a free Non-Emergency Medical Transportation service, so they continue with their medical appointments.

Find Debt Relief in Wisconsin

With thousands of five-star reviews across Trustpilot and Google, our company is a reputable option for debt relief in Wisconsin. We can help you pursue a legitimate debt relief option.

Take advantage of our free debt relief consultation today!