Personal bankruptcy and credit card debt
Many people throughout Illinois are struggling with credit card debt. It is all too easy to swipe a credit card for a few purchases and eventually accumulate a balance that is too big to repay. When credit card balances are not paid off right away, they start to accumulate interest. If the interest and payments combine to create a large debt, some credit card users may start to consider the possibility of bankruptcy.
The best way to avoid getting into trouble with credit card debt is to make sure that large amounts of debt never accumulate in the first place. Credit cards should be used as a way to finance important purchases when there is not enough cash at hand. They should not be used as an excuse to spend beyond a reasonable level. Overspending creates debts that can be tough to manage.
If credit card debt begins to get out of control, consumers have a few options. They may be able to negotiate with the credit card companies to lower interest rates and create a repayment plan. They may also be able to get credit counseling and information from a reputable credit counseling company. If those options are unsuccessful, some people may begin to consider filing for bankruptcy.
In most cases, filing for bankruptcy can be used to erase large amounts of debt. Successfully filing for personal Chapter 7 or Chapter 13 bankruptcy may affect many unsecured debts. Making the decision to file for bankruptcy can be a difficult one. An attorney may be able to explain the benefits and drawbacks of the different types of bankruptcy and assist with the filing process.
Source: Credit Cards.com, "8 things you must know about credit card debt ", Erica Sandberg, November 24, 2014