Dealing with credit card debt

On Behalf of | Mar 3, 2016 | Debt Relief |

Credit card debt can cause a lot of problems for Texas consumers. The average amount of credit card debt carried by households across the country is $5,700. When people have high interest rates and ballooning credit card balances, it can lead to severe credit problems.

Many people get credit cards to establish credit, while others just appreciate the convenience. Some are lured into doing so by rewards such as airline miles or zero interest introductory periods. When people are struggling with paying their credit card payments, there are several things they can try.

Overwhelmed debtors may want to start by calling their credit card companies. They might agree to lower the interest rate or work out a payment plan. Companies will sometimes do this because if they send it to a collection agency, they will recover less than the amount that is owed. People should also write out a budget and stick with it. Following a budget may allow them to free up some money to pay towards the debt balances they owe. Using cash instead of paying with credit cards may also be smart.

If the debt load is too overwhelming, people may want to consider filing for bankruptcy. One of the benefits of bankruptcy is that it can give people the fresh financial start that they need. When a credit card debt is discharged in bankruptcy, the creditor may not continue any further collection activities. This means that the creditor can’t file a civil collection lawsuit, garnish wages or engage in any other collection attempt for the discharged debt. People who want to learn more about whether bankruptcy is the right option for them may want to meet with a bankruptcy attorney who can outline the eligibility requirements while discussing other potential forms of debt relief.