Archive for March, 2010

Drowning in credit card debt?

Friday, March 12th, 2010


It is often the case that people feel as though they are drowning in credit card debt.  Credit cards can be useful financial tools when used properly and with appropriate caution. Some of the warning signs of credit card trouble are as follows: 

Using a credit card to purchase something that you cannot afford to pay for in cash

Using a credit card to pay bills and/or credit cards

Using the credit card as a substitute for cash without any realistic expectation of being able pay the credit card bill

 Not paying attention to the interest rate that the card carries

Going over your credit limit and incurring over limit fees

Paying your credit card bill late resulting in late fees

Paying only the minimum payment

Failure recognize and pay attention to the inherit dangers of using credit cards can be a recipe for financial disaster.

Credit cards can be useful, but only when carefully handled and monitored. Along with the financial and emotional stress that can accompany difficulties in making credit card payments, can be the added stress of dealing with unreasonable credit card collection activities. Credit card collection activities can be so emotionally draining that it affects a person’s ability to properly handle their other financial issues and even their day-to-day needs. Ignoring problems with credit card debt makes it even worse. Once a problem with credit card debt is known, it is useful to get professional help in addressing the difficulty before it spreads into other areas as well, such as ability to make mortgage or other secured debt payments. Before despairing and letting credit card difficulties drastically affect you, it is important to keep in mind that the law may provide relief to eligible debtors.  Consumers can and should explore legal procedures that may provide them with debt relief.  Debtors feeling as though they are drowning in credit card debt may be able explore relief under Chapter 7 or Chapter 13 of the federal bankruptcy law or, if the debtor is a Wisconsin resident under Wisconsin Chapter 128.

We are a debt relief agency.  We help people file for relief under the Bankruptcy Code.