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Credit Card Debt and Filing for Bankruptcy Go Hand in Hand

Credit Card Debt and Filing for Bankruptcy Go Hand in Hand
"As the economy continues to spiral downward with no indications of a bottom in sight, foreclosures have recently received a great deal of media attention. It is intriguing that no one reports on the sustained high level of credit card debt carried by Americans. There are significantly more bankruptcies attributed to credit card debt than to foreclosures. Numerous genuine causes of foreclosure can also be attributed to substantial credit card debt. Many individuals who fall behind on their mortgage payments fell behind on their credit card payments as well, resulting in foreclosure. Credit can be an addiction and a difficult bad habit to overcome. When individuals declaring bankruptcy are informed that they must destroy their credit cards and are not permitted to retain any, they struggle to comprehend how they will survive without credit.After speaking with debtors, it becomes psychologically difficult to file for bankruptcy because the individuals feel remorseful for being unable to repay their credit card companies. In many instances, credit card companies extended new credit to customers who were already maxed out. Don't overlook the fees and interest they have collected from these same individuals over the years. Lenders employ marketing strategies that glorify credit and encourage the heedless use of credit cards for unnecessary purchases. Before filing for bankruptcy, many debtors attempt to keep their credit cards by negotiating with creditors for a reduced interest rate or monthly payment. Creditors have no reason to negotiate so long as the account is being paid in full. When a debtor is on the verge of declaring bankruptcy and the account is in default, creditors alter their tone in an attempt to obtain whatever they can from the debtor. In other words, they have no interest in assisting you as long as you can make the minimum payment, but after they've ruined your credit, they're willing to settle for pennies.Numerous individuals forget the period preceding their bankruptcy filing, when the creditor's collections department did nothing but increase the debtor's fees and interest rates, causing the debtor to default on the account. When a debtor puts himself into financial trouble, he should not be concerned with how much the creditor is paid. They have already been compensated very well. Financial difficulties are not simple and can bear heavily on individuals. This is the rationale for the creation of bankruptcy. Congress created bankruptcy on the basis that deserving individuals deserved a second opportunity. Numerous Americans are currently mired in credit card debt with no way out. Filing for bankruptcy could give these individuals a fighting opportunity to regain their financial footing and start over. Always consult a bankruptcy counsel before declaring bankruptcy to ensure it is the best decision for your financial future.
" - https://www.affordablecebu.com/

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"Credit Card Debt and Filing for Bankruptcy Go Hand in Hand" was written by Mary under the Finance / Wealth category. It has been read 159 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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