As the economy continues to struggle and Americans find themselves facing financial challenges, credit cards have often been the go-to source for covering unexpected expenses, whether it be health care, car troubles or costs arising from unemployment. Yet, with skyrocketing interest rates and fees, credit card companies prey on these down-on-their-luck individuals, making it nearly impossible for them to pay back the money they spend. Those who make the minimum payments may find themselves falling deeper and deeper into the credit card debt hole. But one group of Americans seems to be avoiding the trap.
According to a study by FICO, the credit score provider, 16 percent of consumers aged 18 to 29 do not have a credit card, up 8 percent from 2007. As a result, total credit card debt has dropped within that group from an average of $3, 073 to $2,087. While this appears to be good news, the fact remains that 84 percent of young Americans have a credit card and, while the average balance on these cards is only around $2,000 per person many people may have debts that are much higher and unmanageable. Fortunately, these individuals can get help through debt relief.
The best way for struggling individuals to avoid creditor harassment and eliminate their credit card debt is to file for bankruptcy. Filing for bankruptcy can be a complex process, but an experienced attorney can help guide someone through the process. A Chapter 7 bankruptcy, also known as a liquidation bankruptcy, allows an individual to come out of the process debt free in a matter of months. Also, in many instances, individuals who file for Chapter 7 bankruptcy can keep their property.
Credit card companies prey on those who are facing financial challenges. Debt victims generally have good intentions and are merely trying to get by and live a happy life but may find themselves harassed by collectors and intimidated by their mushrooming debt. These individuals owe it to themselves to seek a fresh financial start. An experienced bankruptcy attorney can help make it a reality.
Source: WGHP Fox 8, "Number of young Americans without credit cards doubles," Jun. 14, 2013