Best Debt Consolidation in Milwaukee, WI

The average credit card debt for one person living in Milwaukee is around $5,000, which is lower than the national average of $6,300. While Wisconsin residents have some of the lowest credit card debt in the country, the average salary here is lower than the nationwide average, which causes some residents to struggle to pay bills. People living in Milwaukee who want to reduce or eliminate their credit card debt should consider debt settlement or debt consolidation with a reputable debt relief company.

Nearly everyone struggling with debt qualifies for some type of debt relief. Knowing your options helps you choose which form of debt relief is right for you.

• Debt consolidation loans: Milwaukee residents take out debt consolidation loans to pay off their existing debts. Doing this reduces their number of payments to one each month, and the loan usually has a lower interest rate to help save money over time. To make sure you qualify for a better interest rate, you should have a steady income, a credit score of at least 640 and, in some cases, an asset to use as collateral for the loan. Most companies require you to have at least $10,000 in debt for a debt consolidation loan.
• Debt settlement: If you don’t qualify for debt consolidation, debt settlement may help you avoid bankruptcy. Debt settlement allows you to negotiate with creditors to pay off your debt through a lump-sum payment that’s less than the total amount previously owed. During debt settlement, you stop making payments to your creditors and deposit an affordable amount into an account set up for debt settlement purposes. Because you stop making payments, debt settlement may have a negative effect on your credit score. Most companies require unsecured debt, usually credit card debt, of at least $10,000 to qualify for debt settlement.
• Credit counseling: There are no specific requirements for qualifying for credit counseling in Milwaukee. Many debt relief companies and nonprofit organizations offer credit counseling. During a credit counseling session, a debt expert looks at your debts, assets and incomes and helps you come up with a plan to manage your debt.

A debt relief company can help you choose which form of debt relief is likely to work best for you based on your financial situation.

The price of debt relief in Milwaukee depends on the particular services you need:

• Debt settlement companies usually charge around 20% of either your total enrolled debt or the amount you save through settlement. The average debt settlement in Milwaukee is approximately 50% of what you owe your creditors, but settlements range from 20% to 70% across Wisconsin.
• The cost of debt consolidation depends on the interest rate of your new loan or debt management plan. In Milwaukee, debt consolidation companies frequently charge a $50 set-up fee. Some companies also charge an average monthly fee of around $35.

Debt settlement and debt consolidation companies in Milwaukee usually require clients to have a minimum of $10,000 in unsecured debt. Most debt relief companies offer payment plans for their services.

Be wary of any company that charges large upfront fees before performing any services — this is usually a sign of a scam.