Overwhelming credit card debt is one of the primary reasons that consumers file for bankruptcy, usually availing themselves of the relief provided under Chapter 7, although such debt is readily dischargeable under Chapter 13 as well.
Credit card debt usually accumulates over a considerable period of time, and eventually becomes a “slippery slope” that is very difficult to navigate. Although its onset can be triggered by a catastrophic event such as job loss or medical debt, it often just starts in an uneventful fashion and just “creeps up” on you. Some young people are targeted on college campuses, often at freshman orientation, where the credit card companies make the ability to spend money that you do not have sound so attractive to the young and gullible mind. Others spend their life savings buying their first house and, when they move in, discover that their “dream house” is unfurnished and empty. Credit cards are frequently the tool used to furnish the house, and to deal with the other, unexpected household expenses that inevitably occur. Some folks just take out a credit card for “emergencies”, or to facilitate renting a car, but the unexpected expenses of life cause them to use their credit cards for reasons not originally contemplated. Things can just “get out of hand” before you even know it.
The reasons for falling into credit card debt may be many and varied, but it is the excessive interest rates, late charges and over-the-limit fees that can make it virtually impossible to effectively manage the debt. If all you are doing each month is making the minimum payment, you will find yourself doing so for the next ten years without achieving any meaningful debt reduction. As your cost of living continues to increase while your paycheck remains stagnant or (worse yet) gets smaller, you may just feel that you are out of realistic options. If you find yourself contemplating taking out a pension loan or a 401K withdrawal or a second mortgage to address your credit card debt, it is time to come up with a “Plan B”, because “Plan A” clearly is not working. If you are losing your on-going battle to get out of credit card debt, you may owe it to yourself and your family to at least explore bankruptcy as a possible course of action. Many times, it is the most appropriate action in the face of overwhelming credit card debt, and in some instances it can be the only option.
When confronted with overwhelming credit card debt your First Step to Recovery is to stop using your credit cards, thereby containing the problem so that it does not get any worse. When stuck in a hole, the first rule always is STOP DIGGING!! Once you have “stopped the bleeding”, your next step should be to call our experienced bankruptcy lawyers. As long as you have not “loaded up” on a particular credit card in the recent past, your credit card debt should be readily dischargeable. If you have “loaded up” on one or more cards, our experienced attorneys located near Port Jervis, New York can counsel you about ways that this problem can be minimized. Our experienced Orange County New York bankruptcy attorneys and staff are accustomed to dealing with clients in acute financial distress, and your Final Step to Recovery will be to call us and schedule a free consultation so that we can evaluate your situation.