It has been reported that most consumers nationwide, including in Maryland, are burdened with credit card debt that they would likely prefer not to have. In fact, the average credit card debt per household is reported to be at least $15,000. Unfortunately, some consumers wait too long before trying to tame credit card debt. Eliminating debt is not something that can be achieved overnight, and those who are overwhelmed by credit card debt may benefit from researching how bankruptcy protection can resolve their financial problems.

However, there are steps that can be taken to relieve the impact of credit card debt on the various areas of a person’s life. In order to determine the severity of the situation, the first step would be to calculate the total of all debts. The bottom line is that less money must be spent, and more must be earned. By revising a budget, non-essential expenses can be identified and eliminated to bring down overall spending.

Additional income options may be considered, such as a part-time job, extra hours at a day job or asking for a raise in salary. A significant part of credit card debt is made up of interest. It may be worth a try to ask the credit card provider to lower the interest rate in order to reduce the debt.

While these methods may be successful in the long run, it will not protect the consumer against harassment by debt collectors, repossessions, wage garnishments and even foreclosure. However, bankruptcy protection may stop all those actions. Under Chapter 7 bankruptcy, non-exempt assets will be liquidated to be distributed to creditors, but unsecured debts, such as credit card debt, may be discharged. An experienced Maryland bankruptcy attorney can explain the details concerning bankruptcy that will allow a consumer to make an informed decision about obtaining financial freedom.

Source: blogs.hrblock.com, “Monday Mishap: I’m In Credit Card Debt”, Michelle Schroeder-Gardner, Nov. 3, 2015