While Credit Card Debt Falls for Some, Atlanta Bankruptcy Offers a Solution for Others

There's good and bad news when it comes to the Federal Reserve's recent report on credit card debt in the U.S.
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The good news is that the latest numbers show credit card debt fell through October 2011. That's the fourth straight month that consumers have cut back on plastic.

As for the bad news? Atlanta bankruptcy attorneys point out that the data doesn't take into account the holiday shopping season, when many Atlanta consumers feel compelled to spend money that they don't have. And, of course, that requires a credit card.

It's not that people are swearing off credit cards. One of the most likely causes of the debt decline is that consumers are struggling to pay down large balances of existing credit card debt so that they can gain access to new credit. Of course, with incomes mostly stagnant, it can be difficult to find the money to pay much more than the minimum balance - which is required to take a bite out of credit.

In an article about the report by CreditCards.com, an Atlanta resident said she started paying down her balances after discovering she could save a significant amount of money if she didn't have a balance on her card each month. Atlanta bankruptcy lawyers agree with her strategy. But we also know that not everyone has the funds to pay off balances in full.

For those of us with overwhelming credit card debt, bankruptcy offers a solution. Filing for bankruptcy in Atlanta has helped thousands of people eliminate debt, avoid foreclosure, and regain their financial independence regardless of the economy we live in.

One of the biggest problems with credit card debt is that it works its way into every area of a person's financial life.

Interest and fees cause debt to grow far beyond original purchases. Too much debt impacts your ability to handle house payments and other important expenses. When you take on too much credit and start missing payments, your credit report takes a beating, making it impossible to qualify for affordable rates - and even impacting your chances of being hired for a job.

Credit card debt can easily snowball out of control. Bankruptcy can reverse that snowball effect. Filing for Chapter 13 bankruptcy may allow you to make more affordable payments on your debts over a period of 3-5 years, freeing up more money for you to make other payments like the mortgage.

Chapter 13 also has the unique ability to legally stop foreclosure. Afterward, remaining debts are discharged. For those who can't manage to make payments, Chapter 7 bankruptcy can often clear debts completely. Our skilled Atlanta bankruptcy attorneys can identify the best form of bankruptcy for your individual situation so you can start making progress on paying off credit cards and getting your life back.

If you would like to speak to an Atlanta bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt evaluation.

More Blog Entries:

Avoid Psychological Damage From Collections by Filing for Bankruptcy in Atlanta: December 19, 2011

Credit Card Companies Trying to Use Holiday Shopping to Lead Atlanta Consumers into Debt: December 13, 2011

Additional Resources:

Consumer Credit Card Debt Falls Further in October, by Kelly Dilworth, CreditCards.com

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