Credit Card Debt in Georgia can Lead to Bankruptcy
A Lawrenceville couple once saddled with more than $83,000 in credit card debt tackled it over a five-year period, The Atlanta Journal-Constitution reports. It's an amazing feat for any American.
But despite this feel-good story, it is exceedingly rare for people with that much debt to be able to conquer it on their own. While it's possible, it takes strict dedication, sound advice and favorable conditions to be able to climb out of crushing credit card debt in Atlanta. The Atlanta bankruptcy law firm is here to assist you if you've fallen into mounds of credit card debt you can't deal with.
The Georgia couple was able to get rid of that mountain of debt by consulting with a finance expert, using cash, not taking vacations or impulse spending and cutting back on credit card use. They made large monthly payments to avoid high credit card interest rates. That is all sound advice, but statistics show the couple is in the minority in their ability to cut credit from a budget.
In its monthly report in May, the Federal Reserve said overall consumer credit rose $6 billion to $2.426 trillion, meaning that much credit is being used in the United States for purchases and loans.
Credit debt is one of the leading causes of bankruptcy in Atlanta. And while it is a frightening word for those who don't understand its benefits, bankruptcy can often save you from the stacks of credit card bills that have been piling up for years.
Bankruptcy saves millions of people from unmanageable debt loads. But there are different types of bankruptcy filings, so choose wisely. You may be eligible for Chapter 7 bankruptcy and Chapter 13 bankruptcy, but one may not help you as well as the other.
For instance, Chapter 7 bankruptcy in Fulton County is designed to allow someone to liquidate to get rid of credit card debt, personal loans, wage garnishments or payday loans. It may be helpful to you if you have few assets and little income.
But maybe you are years into your mortgage payments but still are feeling the effects of your credit card debt, health problems, marriage problems, issues getting by and paying for gas and food. It's possible that Chapter 13 bankruptcy is your best bet.
This form of bankruptcy can allow you to keep your home and still prevent debt from controlling your life. It will require a payment plan that you can manage for 3 to 5 years. It can be a good way to simplify your life and help you avoid foreclosure.