Is Bankruptcy The Answer When Buried In Credit Card Debt?

Debt: it seems to be something that most people in Kentucky and elsewhere just cannot escape these days. While some can find ways to pay it off in a relatively swift manner, others may struggle with it for years. This is particularly true with credit card debt. For those who are really in a monetary tight spot, bankruptcy may be the answer.

How bad is the credit card debt crisis? A quarter of Americans are said to have unpaid balances right now. Approximately 43 percent of these individuals have carried these balances for two years or more. With interest rates that average between 16 and 24 percent, carrying balances for any period of time can quickly add to the amount one is required to pay back. It may seem like an impossible task after a while when all one can afford is the minimum monthly payment.

What can people who are struggling with credit card debt do to improve their situation? There are a lot of suggestions out there; some of them may be beneficial and others may not. It all depends on the specifics of one’s individual situation. Some suggestions for paying down credit card debt include:

  • Use cash not credit
  • Stick to a budget
  • Ask lenders to reduce interest rates

For Kentucky residents whose credit card debt is just too much to handle, bankruptcy may be an option. There are two types of personal bankruptcy available: Chapter 13 and Chapter 7. An experienced attorney can review the finer details on one’s economic situation and, if it is deemed appropriate, help one file for the bankruptcy option that will best serve his or her interests.

Source: The Seattle Times, “Carrying credit-card debt? You’re not the only one“, Patricia Sabitini, Oct. 14, 2017