Credit cards; most of us have used one at some point in our lives. Yet, with an economy stagnated by low wages and high unemployment many Americans find themselves relying on the plastic cards just to get by day-to-day. Unfortunately, making the minimum payments on these cards when their interest rates are so high can leave an individual drowning in debt. And the problem is expected to grow worse for more Americans the rest of 2013.
According to a new study, Americans are expected to add nearly $47 billion to their credit card debt, making the total new credit card debt between 2011 and 2012 $82 billion. While some experts suggest consumers limit the use of their credit cards and pay off large balances first and fast, others do not have the luxury to choose to do this. For those who feel hopeless, an attorney can lend a helping hand.
One option an attorney can give a client who is unable to pay off credit card debt is to file for bankruptcy. Filing for bankruptcy may sound scary, but an attorney can walk the individual through the process. Under a Chapter 7 bankruptcy, the filer may be able to liquidate his debt, fully discharging it. In addition, filers can typically keep certain assets like a house. Though it is true that a bankruptcy filing will have an adverse effect on an individual's credit report, it still may be in the filer's long term interest.
Many Alabama residents have fallen on tough times that are full of financial challenges. When they had no other option many turned to credit cards to keep them afloat. By obtaining an attorney, a path to a fresh financial start is possible. Those struggling financially deserve better than unbearable stress and creditor harassment.
Source: U.S. News & World Report, "Credit Card Debt Forecast Signals Ominous Warnings to Consumers," Odysseas Papadimitriou, Jul. 3, 2013