The majority of people use credit cards to some extent. While many see the habit as a secure way to make transactions and have no trouble keeping up with repayments, others get into the trap of using them as their primary source of funding. Sadly, many consumers find themselves using credit cards to spend money that they do not have.
It’s easy to see how this gets people into financial trouble. When the credit card bill arrives in the mailbox and it is ignored, this leads to interest on the unpaid debts and a debt spiral occurs.
If you are becoming crippled by credit card debt, you need to first recognize that there is a problem. The earlier you act, the simpler the problem will be to solve.
Can bankruptcy help me with my credit card debts?
In some cases, people can use good budgeting techniques and discipline to get back on track with their credit card repayments. However, if you believe that you do not have enough income to realistically pay off the debt, bankruptcy may be able to help you.
In a situation such as this, a Chapter 7 bankruptcy filing may be the most effective option. Chapter 7 bankruptcy involves the process of asset liquidation to pay off debts. Once all eligible assets are liquidated, debtors usually benefit from the wiping clean of all debts, allowing for a fresh financial start.
Filing for bankruptcy can seem like a drastic step. But by understanding the process more fully and having a clear view of how it can help, you will likely see the benefits.