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Here’s what’s causing Georgia residents’ credit card debt

On Behalf of | May 25, 2023 | Bankruptcy

Many Georgia residents, as well as people in other states, have encountered serious financial problems in recent years. While some have been able to resolve their crises by generating more cash flow or cutting back on spending, others have determined a need to tap into outside resources for debt relief assistance. Credit card debt is what often sparks financial crisis for Georgians, and filing for bankruptcy is a valuable tool in many cases.  

Several issues are common among those facing substantial credit card debt. If you’re struggling to stay afloat financially, you may be able to relate to these issues. The good news is that most financial crises are temporary, and you may have options available to resolve debt and restore solvency.  

Did a medical emergency cause credit card debt in your household? 

Medical bills rank high on most lists regarding issues that cause credit card debt for Georgia residents and other people throughout the country. Even if you have a good insurance package, you can still encounter financial problems associated with medical bills. In most cases, people start using their credit card to pay off medical debts, which causes a balance to quickly get out of hand if you’re not paying it off each payment cycle. 

Inflation has taken a toll on Georgians and all Americans 

During an inflation period, merchants often hike their prices to try to compensate for a dollar that loses its value. Have you found yourself buying gasoline or groceries or other household items on credit in recent years? If so, you’re not alone in your struggle. Many people say they have incurred credit card debt just by trying to make ends meet at home.  

Unexpected expenses can spark financial crisis 

Perhaps your car needed repairs or you or someone in your household lost a job or experienced a reduction of income. All these issues can lead to credit card debt, which, in turn, can have a devastating effect on your finances. If you have determined a need to seek additional resources for debt relief, you’ll want to learn as much as you can about bankruptcy.  

There are several types of bankruptcy, each carrying its own eligibility requirements that must be fulfilled to qualify. If you are ineligible for a specific program, don’t lose hope because there might be other options available in your case. It’s helpful to discuss your specific financial portfolio and needs with someone who is well-versed in Georgia bankruptcy laws to determine which program can help you accomplish your goals.