Having debt in collections may not be something to be proud of, but according to a study by the Urban Institute, those who do are in good company. Researchers found that 77 million people have debt in collections, and the average amount owed is $5,200. If you have debt in collections and want to know your options, turn to Arndt Buswell & Thorn S.C. in Sparta and Bangor, Wisconsin.    

Here are five types of debt that commonly go into collections:

• Credit Card Debt: When people can only afford to make the minimum payments on their credit card debt, it reduces the principal by a small margin, which means the debt will stick around for a while. If you find yourself in a position where you can no longer make even the minimum payments, the debt will eventually go to collections.
• Medical Bills: Drowning in medical debt is incredibly frustrating because it’s the one kind of debt that people don’t take on by choice. It also happens to be one of the most common causes of bankruptcy.
• Mortgage Payments: Mortgage debt will not go into collections until homeowners are several months behind on payments—but once your mortgage goes into collections, it’s hard to recover from it.
• Car Payments: Taking out a car loan is risky because cars tend to depreciate much faster than most people can reasonably pay off the loan.
• Student Loans: Massive student loan debt is a growing problem around the country, and many graduates find themselves unable to land a job that allows them to make even the minimum payments on their student loans—which means the debt eventually goes to collections.

If you find yourself struggling with debt, Arndt Buswell & Thorn S.C. will help. Visit their website to learn more about their areas of practice, including bankruptcy and real estate law. Call (608) 269-1200 to schedule a consultation in Sparta, or call (608) 486-2324 to schedule an appointment with an attorney in Bangor. Don’t wait until your debt goes into collections—discuss your options with a qualified lawyer today.