Is Chapter 7 bankruptcy a solution for credit card debt?
Facing an overwhelming amount of credit card debt can be stressful for a Tennessee consumer. After falling behind on payments, debt collectors may start calling and creditors may move to initiate processes like wage garnishment. Credit card debt has reached a startling new level in the United States, which means more consumers may need to consider the benefits of Chapter 7 bankruptcy.
Carrying a large amount of credit card debt is much more than an inconvenience. For many, it is a financial hindrance, taking away from things like saving for retirement and establishing an emergency fund. With accumulating interest and balances that roll over each month, it’s often a challenge to make more than the required minimum payments. Americans are accumulating billions of dollars in credit card debt, so this problem is likely more prominent than many realize.
Statistics indicate that at the end of 2019, the average household had around $8,700 in credit card debt. These balances can be even more of a concern for Tennessee consumers who don’t earn a large income or depend on the gig economy for their income. Another statistic suggests that 36% of consumers spend more time paying off a large purchase made on a credit card than planning for it.
Chapter 7 bankruptcy is a reasonable way for a person to effectively confront certain types of unmanageable balances. This process can eliminate credit card debt, medical bills and other debts. It is often a reasonable and effective way to lay the foundation for a better financial future. An overwhelmed individual may find it beneficial to seek the guidance of a legal professional who can explain the options available.