Households throughout the country are struggling to make ends meet. The average debt has increased and, according to a recent survey, most families maintain a credit card balance well over $10,000. According to that same survey, 56% of Americans report that they have more credit card debt than they did last year and are unable to pay it off in the next year.
Although there is comfort in the fact that you are not alone, the situation remains frustrating and stressful. Families like yours are trying to make ends meet and move on with their financial futures but credit card debt, often on cards that come with high interest rates, keep holding you back.
What could go wrong?
The first step is to recognize the problem. Ignoring credit card debt will make the issue worse. The interest rate will increase, penalties will likely apply, and the balance will continue to grow. Credit card debt is known to snowball. As such, it is important to address the problem as quickly as feasible.
What can I do?
There are strategies that can help. If not already attempted, it is wise to put together a budget and include a payment strategy to start chipping away at the debt. If this has not worked, it is time to consider other debt relief options. These can include an attempt to negotiate a better rate with credit card companies and consolidating debt.
When these strategies do not work and that debt becomes unmanageable, bankruptcy can help. In these situations, a petition for relief through bankruptcy can offer a solution. When used wisely, a Chapter 7 bankruptcy can result in the discharge of debt like credit card debt, medical bills, and personal loans.
There are some drawbacks to bankruptcy, so it is important to give this option careful consideration. An attorney experienced in this area of law can review your situation and discuss the pros and cons of bankruptcy.