Credit card debt haunts many families in the U.S. these days. Once you incur the debt, it is very hard to pay off because of high interest rates, late payment fees, and other penalties. For example, if you have $30,000 of credit card debt then it may seem like if you just paid $500 a month for 5 years you could pay it off. Right? Wrong.
Credit Card Debt
If you have an average interest rate of 20% on your cards then that is costing you $6,000 per year in interest. There are 12 months in a year. So, dividing $6,000 by 12 means that in that scenario you are being charged $500 per month in interest!
You do have options to help you relieve your debt problem. Filing for a Chapter 7 or Chapter 13 bankruptcy can help you eliminate debt and stop the interest from continuing to accrue. Also, you may want to consider your debt settlement or debt consolidation options.