The current dismal job market and floundering economic climate are affecting households all across the U.S. Many people in New Jersey are relying heavily on credit cards to make ends meet and so end up facing substantial debts. Couples who get too deep into credit card debt can feel like there is no way out. The good news is that there are a number of ways for people who are faced with financial difficulty to get their checks and balances back into fighting shape – and bankruptcy is one such option.
Recently, a woman told reporters her and her husband’s story, which may hit home for many Americans. They had been struggling financially when her credit card was declined at a cash register. She joked that her husband must have cut her off, but in reality, the credit card company had closed their account. Things went from bad to worse when her husband’s application for a home repair loan was denied. The loan officer told him that based on the state of his finances, he may want to consider bankruptcy.
This incident spurred the couple into action. They closed more credit card accounts and, with the help of a credit counselor, began to regain control over their spending. It took five years of monthly payments of $665 to clear their credit card debt. The couple owed over $90,000 on 17 different credit cards, but the woman said that she never realized the extent of their debt obligations until they settled the total balance. At the end of the process, the couple no longer needed bankruptcy protection.
The couple’s discipline is extraordinary. However, not everyone is able to stick to a strict repayment plan as this couple did. In fact, many people simply can’t muster the resources needed to erase their debt. Many people instead choose to file for bankruptcy protection; a process that liquidates assets and helps filers pay off as much of their debt as possible. Filing for bankruptcy can free New Jersey residents from the burden of harsh financial difficulties.
Source: The Buffalo News, “Gaining freedom from debt requires years of sacrifice,” Susan Tompor, 20 June 2011.