Credit Card debt hits a new high
Americans’ credit card debt is near record high levels. According to the Federal Reserve Bank of New York, our country’s total credit card debt currently stands at $925 billion (as of the third quarter of 2022).
One year earlier, the country’s total credit card debt was $804 billion. That represents an increase of $121 billion in a single year. Georgia is ranked at #16 in the country, with an average debt load of $6,604 per person.
Such a large debt balance is bad for the country, and more importantly, bad for the individuals that hold that debt. Making payments on credit cards strains household budgets, making it difficult to buy gas and groceries. High levels of debt utilization are viewed negatively in the credit market, causing you to be charged higher rates for other loans. Plus, the high interest rates charged by credit card companies make these debts are nearly impossible to pay off.
Help is Available
Luckily there is a way out. Credit card debt is fully dischargeable in bankruptcy. Most individuals can qualify for Chapter 7, which will entirely wipe out credit card debt with no payments due. For others, participation in a Chapter 13 repayment plan will allow for an expedited payoff of debt at a reduced rate. Both options are available to consumers.
What are the downsides to Bankruptcy?
There are very few downsides. Your credit score will be lower for 1-2 years, and if you need a loan during the first year or two after filing bankruptcy you may pay a bit more. That’s about it. The upside to filing bankruptcy is far better. With a bankruptcy filing, suddenly you’re out of debt. Suddenly you have extra money available to put into your savings. Suddenly you have the option to spend money on family activities that you previously had to skip. Getting control of your financial future is a benefit that will continue to pay you rewards for years.
Now is the Time to Seek Help
Obtaining a consultation with a bankruptcy professional is the first step in curing your financial headache. By discharging your credit card and other debts, you can finally get on the road to saving money for the future – for a vacation, or new car, or for retirement. Building up your savings will truly relieve your financial stress and finally allow you to sleep comfortably at night. Don’t keep throwing hard-earned money at a problem that won’t go away.
Call us now, we’re ready to help. 770-834-0295 for a Free Consultation.