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Interest-rate cut proposed on past-due child support


UNDATED (WSAU)   Divorced parents who don’t have custody of their kids would pay less interest on their overdue child support, under Governor Scott Walker’s proposed state budget. The interest rate on arrears would be temporarily cut from 12-percent to 6-percent for a year-and-a-half starting in January, to see if it encourages non-custodial parents to pay more of what they owe. If it does, the Legislature could extend the lower rate.

The Racine Journal Times said over 14,000 people have past due child support in Racine County alone. And they’re behind by an average of $13,500.

Andy Smith of the state Department of Children-and-Families says studies have shown that non-custodial parents are more likely to make payments on the debt when interest is low. He says it would help children and the parents they live with get the support they need – and it would save tax money by having fewer custodial parents on government assistance.