Archive for the ‘Stop Collections’ Category
When it comes to creditworthiness, it’s hard to top the consumers of Wisconsin.
Four Wisconsin cities – including Wausau at No. 1 – are among the 10 communities in the nation with the highest average credit scores, a new survey shows.
Wausau residents posted an average credit score of 789 in the survey conducted by the credit-rating agency Experian. Madison was third, at 785; Green Bay sixth, at 780; and La Crosse 10th, at 777.
Milwaukee, with a score of 765, was 33rd of 143 cities included in the survey.
“Wisconsin residents remain among the nation’s most fiscally responsible,” Experian stated Tuesday in announcing the survey results.
Higher credit scores generally give consumers the ability to borrow money at lower interest rates.
Credit scores are based on a consumer’s payment history, debt balances and several other factors. Among those factors are how much of a person’s available credit is used, how long a person has had credit and whether late payments have occurred recently.
Wausau unseated Minneapolis, with the Minnesota city slipping to second in the annual survey with a 787 average credit score.
Rose Oswald Poels, chief executive of the Wisconsin Bankers Association, wasn’t surprised by the survey’s findings.
“The consumers in this state are generally very conservative with their money and smart about credit decisions, and that’s true of the financial institutions that serve those citizens,” Oswald Poels said. “I think it’s just the combination of the types of values and people we have in this state, coupled with the type of financial institutions that we have. We both share similar values in being fiscally conservative, hardworking and smart about credit.”
An executive with Wausau-based Peoples State Bank said he’s noticed before that many of the bank’s customers bring credit scores higher than 700.
“I think people here were raised in a conservative fashion, and they live the way their parents do,” said John Proulx, senior vice president for Peoples State Bank. “I think that probably is a big reason as to why we have the good scores.”
Overall, the survey found that Midwesterners have the highest credit scores while Southerners have more financial struggles.
Experian said that while no one factor determines a consumer’s credit score, the weak economy continues to cause major setbacks, such as foreclosures and unemployment. Those troubles were drivers in the rankings and trends for different regions of the country, the firm said.
Of the cities with top 10 credit scores, only San Francisco had a jobless rate higher than the national rate. Texas had four cities in the bottom 10.
The credit scores in the report were based on the VantageScore scoring system, which has a range from 501 to 990, in designated market areas from January through June of 2011, Experian said. The analysis was based on a statistically relevant sampling of Experian’s consumer credit database, the firm said.
“We have our issues just like any other city does. We have some foreclosures and things like that, but probably not as much as some of the other areas do,” Proulx said. “So some of that doom and gloom has hit Wausau, but it’s maybe not as prevalent in this area.”
Wausau Mayor James Tipple was proud of the ranking for his city, which has a population of 41,800.
“I think the quality of life and the people we attract to the region, and not only the region but the city of Wausau, speaks volumes for the score,” Tipple said.
If you are having problems making your second mortgage payment or home equity line of credit you may want to meet with one of our lawyers to see if we can get rid of that secondary mortgage. When you file a chapter 13 bankruptcy a bankruptcy Judge may get rid of a second mortgage or home equity loan if that mortgage is wholly unsecured. Those secondary mortgages are wholly unsecured if your home is valued at an amount equal to or less than the amount you owe on your first mortgage. As an example. You have a home worth $150,000.00 with a 1st mortgage of $155,000.00 and a 2nd mortgage of $30,000.00. In this case the 2nd mortgage company would get nothing in the event your home sold for $150,000.00 or less. For that reason a Chapter 13 judge would order the 2nd mortgage void since it is entirely or wholly unsecured.
This issue can sometimes be very confusing. For that reason we always suggest you set up a free consultation with one of our lawyers a Miller & Miller. There is never a charge for an initial consultation and we are happy to meet with you to discuss all of your options.
James Miller
jmiller@millermillerlaw.com
414-277-7742
Karen Blumenthal recently published an article in the Wall Street Journal entitled, New Ways Bankers are Spying on You, which discusses how in these difficult economic times, banks are doing much more than simply looking at your credit score when deciding whether or not you are worth lending to.
This brings to mind the client who comes to my office and tells me that even though they are hopelessly in debt, they are worried about filing a bankruptcy because their credit score is still high. I always remind these clients that your credit score is supposed to be one of many barometers of your financial health, not an absolute indication of financial health. Unfortunately, many people are encouraged to misuse credit based upon the erroneous assumption that all is well because their credit score is still above 700, and they slowly fall into financial hardship.
The definition of financial health includes living within a budget, controlling debt, using credit responsibly, working towards short and long-term financial goals, and saving. It is challenging to manage any of these things when you are struggling to make minimum payments on your monthly obligations.
The federal bankruptcy laws provide a solution for those who are overwhelmed with debt. Bankruptcy can restructure or eliminate certain debts while protecting assets like your car, your home, and your 401(k). If you have more debt than you can handle, and feel like you aren’t getting ahead, don’t be fooled by a high credit score. It might be time to consult with one of the experienced attorneys at Miller and Miller, who can advise you of your options on how to get back on the road to financial health.
I jsut received notices that my wages are being garnished. Is it too late to file for bankruptcy? No, it is not too late. Filing a Chapter 7 or Chapter 13 immediately stops all collection activity including wage garnishment. Contact Miller & Miller Law Offices today to schedule a free initial consultation if your wages are being garnished.
Here’s an article by Paul Gores of the Milwaukee Journal Sentinel revealing some unfortunate statistics about foreclosures in Milwaukee County last month:
Foreclosure filings spike in August
After slowing down this year, foreclosure filings spiked in Milwaukee County in August, setting the pace for an overall 34% increase in foreclosure actions in southeastern Wisconsin from July.
Court records show there were 970 foreclosure filings in August after 725 were recorded in July in Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington and Waukesha counties. July had fewest filings of any month this year.
In Milwaukee County, foreclosure filings jumped to 543 after totaling only 367 filings in July. August was the first time that Milwaukee County topped 500 foreclosure filings in a single month in 2011. In 2010, Milwaukee County monthly totals exceeded 500 filings nine times.
Kenosha and Racine also posted relatively big jumps in filings from July to August. Kenosha’s rose to 107 from 80, while Racine’s went to 107 from 78.
Economists say foreclosure numbers generally track with unemployment trends.
While foreclosure filings rose on a month-to-month basis, August’s total of 970 still was down about 6.5% from 1,037 in August 2010. Foreclosure filings in southeastern Wisconsin totaled 7,080 through August, compared with 8,175 in the first eight months of last year.
Other July-to-August county results: Ozaukee, 18, up from 16; Walworth, down to 60 from 64; Washington, unchanged at 38; and Waukesha, 97, up from 82.
If you need help with foreclosure proceedings call Miller & Miller today at 414-277-7742. You have options.