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Michael D. Hart, P.C.
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540-627-6520
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Indirect methods of accruing credit card debt

Credit cards can be effective tools when Virginia residents are planning a vacation. This is because many cards offer cash back, airline miles or other perks that can be used to pay for a hotel or a rental car. However, using a credit card can also make a vacation more expensive than it needs to be. This can be especially true for those who want to take a trip now and pay for it later.

A program from American Express allows people to get an advance on airline miles that they plan to accrue in the next six months. However, cardholders have to pay a fee for every mile that they fail to accrue. The fee is applied to a person's balance at the same interest charged on other new purchases. Individuals who book flights through layaway sites may have to pay interest twice.

They will be first be charged interest, an origination fee and a booking fee by the site that is facilitating the transaction. In addition, they will have to pay interest on the balance accrued on the credit card used to make payments to the layaway company. Individuals who fail to make credit card payments may face a penalty interest rate of 29.99% for up to six months.

Filing for Chapter 13 bankruptcy may make it possible to reorganize credit card and other types of debt. Debts are repaid for either three or five years depending on the filer's income. If there is a balance remaining on a debt at the end of the repayment period, it may be discharged. An attorney may explain the eligibility requirements for this form of debt relief.

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Michael D. Hart, P.C.
19 Church Street Southwest
Roanoke, VA 24011

Phone: 540-627-6520
Fax: 540-342-7655
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