When a person is overwhelmed by credit card debt, it can have a negative impact on every area of life. From unexpected medical expenses to a prolonged unemployment period, people may find themselves dealing with the impact of circumstances beyond their control. When this occurs, Maryland readers may find that bankruptcy protection is a viable and beneficial option.
The Federal Reserve estimates that Americans carry approximately $950 billion in credit card debt, and about 65 percent of credit card holders do not pay off their balances every month. While some may be living beyond their means or making poor financial decisions, many are facing financial situations that are completely beyond their control. For people who cannot pay off their balances every month, they will have continuing debt that simply rolls over every month and continues to accumulate interest.
Reducing or eliminating debt is a positive choice, but there are some situations where this is not a possibility. However, bankruptcy can allow a person to discharge certain types of debt, pausing collections efforts and laying the groundwork for a strong and stable financial future. One of the most common reasons that Maryland residents consider bankruptcy is because of credit card debt.
Bankruptcy protection is a way for people to deal with debt burdens that are beyond their control. In fact, people may find that they can rebuild their credit and have a strong financial future once the process is complete. By meeting with an experienced bankruptcy lawyer, a person can understand the specific options that are available to them.
Source: cnbc.com, "Here's how to get a handle on those credit accounts", Sarah O'Brien, Aug. 29, 2016