It can be easy to get into trouble with credit cards. In many cases, the recession put many New Jersey residents in the position of having to use their credit cards in order to stay afloat. Even if your financial situation has improved, the debts created during a difficult time can still be overwhelming. Bankruptcy may be a way to eliminate those debts and obtain a fresh financial start.
If you are only able to make minimum payments, and even making those payments is a struggle, that could be a sign that your budget it stretched to its limit. Even making payments on time — if at all — can become difficult. Meanwhile, the interest rates you may have enjoyed may have gone up, only adding to the balances.
Any automatic credit limit increases your credit card companies gave you may have been a lifesaver during hard economic times are now simply adding to the amount of debt that needs to be paid. Credit cards can be helpful when they are used for specific purchases that can be paid off in a timely manner. However, the more in debt you are, the more money credit card companies make, so they offer more enticements to get people to use them knowing that most people will not be able to pay them off each month.
The question that many New Jersey residents end up facing is what to do about their debt. Some people are able to budget and eliminate luxuries in order to pay off their credit cards, but many other people have already taken these steps and are still struggling. At this point, it may be a good idea to consider filing for bankruptcy protection. It may be possible to obtain a discharge that frees you from your past credit card issues and gives you a new lease on your financial life.
Source: lsnjlaw.org, “Avoiding Credit Card Problems“, , Sept. 12, 2014