Credit Card Debt and Bankruptcy

Credit cards are viewed by many people as a necessary part of everyday life. People don’t like carrying cash or are concerned about overdraft fees on their debit cards. Unfortunately, credit cards are also a source of a lot of grief and debt. The high limits on many cards combined with many people’s unawareness of the hazards of interest rates leads many to take on large amounts of debt that they cannot pay off.

Many credit cards have adjustable interest rates. These credit cards have interest rates based on the outstanding balance on the card. So for example, if a person leaves between $0 and $500 on the card at the end of the month, they will be charged one rate. If a person leaves upwards of $5000 on the card at the end of the month, they will be charged a much higher interest rate.

Another problem with credit cards is that people do not realize how to live without them. Many do not know how to function without whipping out their favorite piece of plastic. This creates a problem in times when a person carries a balance and then doesn’t continue to pay it off. When the balance is carried over and added to, the charges on the credit card add up quickly. It is very easy to get into trouble very quickly with a credit card.

Because of the ease with which people fall into the habit of putting down plastic and carrying a balance, credit card debts are some of the most commonly discharged debts in bankruptcy.

Contact a Boston Bankruptcy Attorney

If you have fallen into a deep hole of credit card debt and are contemplating bankruptcy to get rid of your troubles, contact a Boston bankruptcy lawyer from Joshua Spirn & Associates at 1-800-975-5346 to discuss which bankruptcy options are best for you.