A Financial Fresh Start for the New Year
Dec 22, 2025
CREATE A BUDGET
Making a budget is one of the easiest and most effective ways to take control of your finances. Start by listing your monthly income and writing down all of your expenses, separating essentials like housing, utilities, and groceries from non-essentials such as dining out or entertainment. Compare your spending to your income and set limits to ensure you don’t spend more than you earn. A clear budget helps you see where your money is going, identify areas to cut back, and plan ahead for savings or unexpected costs.
PLAN AHEAD
Financial stress often comes from last minute expenses. Planning ahead is a smart way to protect your finances and reduce stress. Build room in your budget and set aside a small amount each month in a separate account for special occasions or emergencies. Instead of scrambling at the last minute, you can be prepared for larger expenses later in the year or when life takes an unexpected turn. By preparing in advance, you stay in control of your finances and avoid relying on credit cards or loans.
AVOID CREDIT CARDS & LOANS
Limiting the use of credit cards and loans is an important step toward financial stability. While they may seem like quick fixes, high interest rates can easily trap you in long term debt that is difficult to manage. Choosing to spend only the money you already have helps you stay on track and prevents overspending. As you enter the New Year, commit to using credit wisely or not at all. If you can’t afford a purchase outright, reconsider whether it is truly necessary. Avoiding unnecessary debt now will protect your future budget and help you reach your financial goals.
DEBT RELIEF
Sometimes budgeting and planning alone may not be enough to regain control of your finances. If you are dealing with more debt than you can handle, there are debt relief options available in Wisconsin that can help. One major benefit is protection from creditors, including relief from collection calls and wage garnishments. Taking action sooner gives you the best chance to prevent your financial situation from getting worse. Let’s take a closer look at the debt relief options that can protect you, ease your stress, and help you begin your fresh start.
Wisconsin Section 128
If you are struggling with high-interest debt like credit cards or payday loans a Section 128 can help. A Wisconsin Section 128 is a debt repayment program where the court orders creditors to stop interest and accept smaller payments until the debts are paid in full within 36 months. The court appoints a Trustee to receive and distribute your payments directly to your creditors on your behalf. A Section 128 can help you save money while making repayment more affordable and giving you more time to pay off your debt.
Chapter 7 Bankruptcy
If your unsecured debts have grown beyond what you can realistically repay a Chapter 7 can help. In a Chapter 7 bankruptcy the court wipes out your unsecured debts, credit cards, medical bills and pay day loans. For secured debts, such as auto loans and home mortgages, the bankruptcy court lets you choose if you would like to keep the asset and keep the loan or surrender the asset and no longer be responsible for the loan. A Chapter 7 bankruptcy can help eliminate debts you cannot repay and provide you with a fresh start.
Chapter 13 Bankruptcy
If you have fallen behind on your mortgage or car payments a Chapter 13 can help. A Chapter 13 bankruptcy is a repayment plan that reorganizes all your debts into affordable payments over three to five years. Once your case is filed, it can stop foreclosure or repossession allowing you time to catch up and keep your property. A Chapter 13 can also reduce or eliminate your unsecured debts such as medical bills, credit cards and payday loans. A court‑approved plan sets the terms, and the bankruptcy Trustee manages payments to your creditors. A Chapter 13 bankruptcy can help protect your assets, cut down debt, and provide the time, structure, and relief you need to get back on track financially.
Each debt relief option has unique benefits, and the right choice depends on your specific situation. Speaking with an experienced debt relief attorney can help you understand which debt relief option is best for you.
FREE CONSULTATIONS
If debt has been holding you back, the New Year is the perfect time to take control of your finances and leave past struggles behind. At Pedersen Law Office, we understand how stressful debt can be, which is why we offer free consultations. We will meet with you personally to review your circumstances, explain your options, and guide you through the process from start to finish. Our office proudly serves Appleton, Menasha, Neenah, Oshkosh, Green Bay, and surrounding communities.
