Many people dread getting the mail and seeing the high amounts outstanding on their credit card statements. If you are one of the many struggling to get on top of credit card debt while paying other bills and household expenses, it is important to know that bankruptcy may provide a solution. It provides honest debtors with the fresh start they need, freeing them from the cycle of high-interest rates and finance charges that often prevent them from ever paying off these bills.
If you are struggling with high credit card balances, you are not alone. According to a recent report in The Balance, the average amount Americans owed on credit cards reached close to $9,000 by the latter part of 2018. This is the highest that number has been since right before the Great Recession in 2008.
Many of us rely on credit cards for making all types of purchases online, at local retailers, and when buying groceries and paying other debts. Credit card companies encourage this behavior by sending out automatic, pre-approved cards, offering signing incentives, and consistently raising customer credit limits. While you may initially intend on paying your monthly balance off each month, it is incredibly easy to slowly rack up large outstanding amounts while paying only the minimum monthly payment.
Unfortunately, the problem with most credit cards is that once you have a high balance, the minimum amount owed each month is likely to only cover a portion of the interest rate. Despite continuously making payments, you never actually pay off the total amount you owe. If you fall behind in making payments penalties quickly add up, increasing the overall debt. It is a vicious cycle, which many consumers fall into.
Fortunately, bankruptcy can help in these situations. Under U.S. Bankruptcy Court guidelines, you may be able to completely eliminate credit card debts through either a bankruptcy filing. Concerned about the possible impact filing bankruptcy could have on your credit rating? The fact is that carrying large balances on credit cards, being slow to pay, or having past due amounts can impact it just as much, if not more so.
At the Law Office of Karen E. Evangelista, P.C., we can sit down with you and review your unique circumstances to determine if filing for bankruptcy may be the best option to get you back on track financially. Contact our Rochester bankruptcy attorneys today and request a free, no-obligation consultation.