Credit Card Debt Blog

The Bankruptcy Maltreatment and Consumer Protection Act, signed into law last April, will take consequence this calendar month and convey with it some of the most sweeping changes in debt law in history. As the new demands are much more than strict, expensive, and clip consuming than the old ones, consumers with problem debt are rushing to register now. But many others are wondering if their debt problems are serious adequate to justify the rather drastic determination to register for bankruptcy.

Here are a few things that may assist you attain a decision:

You have got got two or more than major credit cards with outstanding balances – Credit cards work best when used for convenience, such as as when you don’t have cash with you or when it just isn’t convenient to pay cash. They work less well when you utilize them as a support source, as they stand for a fairly expensive manner to borrow money. If you have got got more than than two major credit cards with outstanding balances that are high adequate that you cannot wage any 1 of them off right now, you may have a problem.

You do minimum payments only on your credit cards – The minimum payment doesn’t even set a dent in your balance, and until recently, the minimum wouldn’t even cover the interest accrued during the month. If you are only making minimum payments on your credit cards because you cannot afford to direct more, then you may be in over your head.

You are paying one credit card measure with another credit card – Pickings a cash advance on a credit card is really expensive. The interest rate is usually higher than for purchases and the cash advance often includes an further fee. If you are taking a cash advance from one card at 20% interest to do a payment on another at 20% interest, you are probably in trouble.

This listing is by no agency unequivocal or complete. Nor should it be construed as legal advice. But if you see yourself doing one or more than of the things listed above regularly, it may suggest that your financial problems are quite serious. Now would be a good clip to confer with with either a financial advisor or a bankruptcy attorney. Financial problems only get worse when left unattended, so don’t wait.