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Helping good people through bad times

Many consumers growing comfortable with credit card balances

For many people in Tennessee, credit cards are a great way to build a credit report, raise their credit score and help secure credit for larger purchases in the future. However, with a struggling economy and high unemployment, many others find themselves turning to credit cards to help them through the hard times. Unfortunately, this reliance on credit cards may lead to a downward spiral of debt and financial challenges.

A new report on consumer credit card debt shows that 18 percent of consumers feel comfortable carrying credit card debt over from month-to-month. While the consumers who feel this way may be forced to rely on their credit cards from month-to-month, there are dangers. For example, carrying a balance may negatively affect an individual's credit score, and the principal may skyrocket due to interest rate increases.

Individuals who fall on hard financial times, whether because of unemployment or health reasons, may find it difficult to make the minimum payments. When this happens, creditor harassment may leave these individuals feeling depressed and hopeless. Fortunately, the legal system offers these individuals an avenue to a fresh financial start.

One way for individuals drowning in credit card debt to obtain relief is to file for bankruptcy. By doing so, an individual may choose to go through Chapter 7 bankruptcy, where assets are sold to pay off creditors. Once all assets are sold any remaining debt is forgiven. Then, petitioners can focus on getting their finances back on track and moving forward with life.

Legal professionals can help a struggling individual develop a bankruptcy plan that works in the petitioner's best interests. The process is complicated, but with help, a petitioner will be headed in the right direction.

Source: Echo Press, "Poll shows one in five consumers comfortable carrying debt," Aug. 11, 2013

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

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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