Credit Getting Tighter For Consumers

With holiday shopping season in full swing, many of us are worrying about whether or not we're putting too much on the old credit card. But soon we might have a different worry - do we have too little credit?

Along with the housing and job markets, consumer credit has shown little sign of recovering since collapsing last year. After years of handing out credit like candy via subprime mortgages, retail stores and mailboxes (I'm not kidding - I know kindergartners who got credit card offers in the mail) lenders are tightening up their belts, giving out credit to only those with the very best credit history.

If spending more than we earned got us into this financial crisis, having less credit going around might seem like a good thing. But the problem is, some credit is necessary for the financial world to go round - and for our economy to recover.

Yes, putting too many purchases on plastic - and then defaulting - is bad for the economy, not to mention your own personal financial situation. But it's about moderation. A little credit is a good thing - it lets us buy our homes, send our kids to college and start new businesses. If we want to rebuild the economy - and our financial lives - we need to learn how to control credit, not forget about it. And it starts at the individual level.

Rather than walk away from your debt or cut up your cards, find a manageable way to start paying off your obligations. It won't happen overnight, but with time, it will happen. Bankruptcy can help.

With the right bankruptcy plan, you'll be able to reduce or lower debts with manageable payments. As your principal balance grows smaller, so will your interest payments, meaning you'll owe less and less each month. With that extra money, it should be easier to pay your other bills like the rent or mortgage, electricity, your phone, etc. And the more consistently you pay the bills on time, the sooner you'll improve your credit score. You don't even need to use your cards to boost your rating - just proving you can have an account without overspending is enough to make a difference.

Find out more about how bankruptcy can help you repair your financial situation with a free one-on-one debt analysis with one of our Atlanta bankruptcy attorneys. You might not be able to fix the economy's problems, but with the right help, you can solve your own personal credit crisis.

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