If you were to rate your finances at this time would you be happy about the results or worried that your debt situation is getting out of hand? It’s not uncommon for finances to fluctuate with some years being better than others.
Any number of issues may arise that cause you to encounter financial challenges, which can lead to serious economic distress if you do not find a swift and solid solution to resolve the problem. Many Virginia residents use bankruptcy as a valuable financial tool to eliminate credit card debt and restore financial stability.
Credit card debt is a common cause of financial distress. Perhaps, you’ve experienced times in the past when you were unable to pay off your balance in a particular month. Maybe it has happened more than once. However, if an unpaid balance continues to increase, your interest rates may soar. This type of debt can quickly get out of hand, resulting in a full-blown financial crisis.
Credit card debt issues that can throw finances out of whack
If you were to ask a number of friends or relatives what the main cause of their own financial debt happens to be, several people would likely say that it’s credit card debt. The following list shows the most common issues that raise credit card balances and wind up causing people serious debt problems:
- You’ve no doubt used your credit card in a pinch when you wanted to make a purchase but did not have sufficient funds on hand at the time. This convenience can lead to overspending, however, which is a common cause of credit card debt.
- If your car breaks down, it can have an immediate ripple effect on your life, including an inability to get to and from work. It’s not uncommon for people in such situations to use their credit card to pay for repairs.
- In addition to car repairs, you may have used your credit card to pay medical bills, especially if someone in your household has a chronic medical problem or has recently undergone surgery.
- You might own several credit cards that offer rewards. This often seems like a benefit until you compare the value of the rewards you’re getting with the high interests rates you incur for an unpaid balance.
It can be emotionally frustrating and upsetting to face credit card debt that you have no way of paying. You may even be at risk for certain scams that promise to help you resolve your debt issues but wind up costing you more money in the long run.
Chapter 7 and Chapter 13 bankruptcy are often viable options for people in your situation to obtain immediate debt relief. If you’re hesitant to file because you’ve heard negative things about bankruptcy, you may want to speak with an attorney who can inform you of your options and allay any fears or reservations you may have about the process.