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Credit card debts may spike during the holiday season

Thanksgiving and Christmas are approaching quickly. Chattanooga, Tennessee, residents will have to prepare for the upcoming holidays and that means countless shopping trips to stores and malls. Sometimes, consumers forget to keep track of their expenses and use their credit cards for major purchases. Consumers may be surprised later when they accumulate huge credit card debt.

According to a financial expert, it is important for consumers to create a budget and limit their expenses using credit cards. It is also advisable for consumers not to delay before paying their credit card debts. If they are having trouble paying, they may be able to negotiate with the credit card company to adjust the payment date.

Consumers should be very careful when using credit cards. Failure to pay bills on time can result in huge interest rates and fees, which can add to the financial dilemmas of the debtors. When credit card debts accumulate and turn into a seemingly insurmountable amount of debt, it is best for a debtor to seek ways to deal with the debts or face the consequences.

One way of dealing with huge credit card debt is by filing for bankruptcy. Consumers may choose from Chapter 7 Bankruptcy and Chapter 13 Bankruptcy-- two most commonly used form of bankruptcy. Chapter 7 or liquidation allows the debtor to settle the debts through the liquidation of assets. Under Chapter 13, a debtor will undergo a repayment plan that is supervised by a federal judge and lasts from three to five years. Most of the debts are discharged once the bankruptcy protection has ended.

Tennessee residents who are in the middle of huge credit card debts may wish to consider speaking with a legal professional. The legal professional may be able to offer numerous ways to take care of the debt and obtain a fresh financial start.

Source: Q13fox.com, "Don't let credit card debt be a scrooge," Brien Blakely, Nov. 13, 2013

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
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