As previously stated, many individuals struggling with substantial amounts of unsecured debt must rely on credit cards to endure. Unfortunately, these cards have credit limits, and many individuals have reached their credit limits and have no available credit. This indicates that the cards are no longer usable and that interest will continue to accrue. At this juncture, they are essentially without options and do not know what to do.
In addition, credit card companies are currently increasing rates, so the amount of interest paid can be astronomical. Even if you continue to make the minimum payment on these credit cards, you will discover that you are essentially only paying interest, and it will take decades to pay off a $10,000 balance. Obviously, if you have been using your credit card to pay expenses, you will likely only be able to afford the minimum payment each month.
The majority of people in this situation will assume that filing for bankruptcy is the only way out of their predicament. The issue, however, is that you are effectively damaging your credit for approximately ten years. It can also impact hiring practices, making it impossible to land a decent position. If you are unwilling to pay exorbitant interest rates, you will not be able to obtain money for a mortgage or a car. Many companies capitalize on individuals who have declared bankruptcy and impose exorbitant interest rates. Then what transpires? You may wind up in a worse situation than when you began.
These are just some of the many reasons to seek alternatives to bankruptcy. In certain circumstances, bankruptcy is the greatest option. Individuals with substantial secured obligations, such as mortgages or auto loans, may be forced to declare bankruptcy. Generally, bankruptcy is not the best option for individuals struggling with unsecured debt like credit card debt.
There are now organizations that work with individuals to legally reduce credit card debt. They have relationships with card issuers and can negotiate lower interest rates and sometimes even balance reductions on your behalf. Some of these organizations are non-profit and will only charge a nominal fee. I have witnessed interest rates reduced to less than 1 percent and, on occasion, to zero. Imagine how quickly you could pay off your credit cards if you weren't paying interest!""
" - https://www.affordablecebu.com/
