Jeffrey M. Rosenblum, P.C.
A Fresh Start

Eliminate credit card debt through personal bankruptcy

The advantage of having a credit card may be obvious for residents of Long Island, New York. Lately, using a credit card has become a part of their daily lives -- when they go to the mall, purchase an appliance or pay for their meals. However, recent data states that people use their credit cards too much instead of cash.

According to the report, only one of five people in the country use cash at all times. While this may not seem unusual, considering that the new generation is more advanced, as Americans become more dependent on credit cards, the possibility of them encountering financial challenges also increases.

Credit cards may pose several disadvantages. Experts say that using credit cards to fund their lifestyle or to pay daily expenses may pose difficult financial situations. The fact is that credit cards may carry outstanding balances and high interest rates, if the credit card user fails to pay the entire balance and the high interest may accumulate an overwhelming amount of credit card debt. Another disadvantage involves identity theft, in the event that the cardholder loses the credit card. In that case, the cardholder may face a huge financial challenge.

Additionally, credit cards make it difficult for people to track their spending. That is why some credit card debts may be due to the overspending behavior of the user. Improper use of credit cards when it comes to purchases or monthly obligations that can be taken care of by using cash, may also build a cycle of debt.

Fortunately, New Yorkers experiencing financial challenges due to credit card debt have another option. Credit card debt comes with creditor harassment and other consequences but debtors may avoid the latter through personal bankruptcy.

Personal bankruptcy may discharge credit card debt. It can be eliminated through Chapter 13 or Chapter 7 bankruptcy. Those two kinds of bankruptcy may be different in terms of qualifications and process involved, but either one may present a fresh financial start, which is all that is important.

Source: The Star Press, "As Americans become more dependent on credit cards, the danger of plastic loom" Andrew Mishler, July 2, 2013