Like many Americans, you may depend on the use of credit cards for your daily purchases. Whether it’s paying for necessities, such as groceries, or you are using them to pay for nonessential items, reliance on credit cards can quickly become an issue that may affect your overall financial health. If not managed carefully, credit card debt can accumulate to a point where you may not be able to handle it on your own.
If you are struggling with credit card debt, you are not alone. Statistics indicate that millions of Americans have accumulated significant amounts of credit card debt that is taking a toll on their lives. In fact, recent numbers indicate that the amount of this type of debt is at an all-time high in the United States, reaching approximately $930 billion.
A serious financial problem
The total amount of credit card debt that Americans are carrying is up significantly from previous years. It is higher than during the previous financial crisis when many had to rely on cards for basic purchases. Credit card debt is particularly concerning for young consumers who may also be struggling with student loans, initial housing expenses and savings. Younger consumers also tend to have higher delinquency rates on their credit cards, and accumulating interest can quickly add up to insurmountable balances after just a few missed payments.
In order to deal with credit card balances, many turn to solutions such as balance transfer cards. They may also borrow money, decrease spending and work to pay off balances over time. However, even the most concerted efforts to deal with growing past-due debt can be more than one can handle even after intentional efforts to manage the problem. At this point, a consumer may need to explore the legal options that could be available to him or her, such as bankruptcy.
How can bankruptcy help?
Bankruptcy may not seem like an ideal choice for you, but it could be an option by which you can regain control of your financial future. Through this process, specifically Chapter 7 bankruptcy, you may be able to discharge certain unsecured debts. This includes credit card debts.
If you are unsure of how Chapter 7 could benefit you or what it could mean for your financial future, you may find it helpful to seek an assessment of your case. A close look at your current debts and other factors could determine if this is the best way forward for you that will allow you to have stability and security long-term.