Credit cards offer a convenient way to make large purchases. Because the minimum payment on a large debt is typically very affordable, people can buy the things they need immediately, without having to save for months to make a major purchase. This means, when the air conditioner goes out, a family with a credit card won’t have to hesitate to get it repaired or replaced. They might also be able to purchase new furniture when their child outgrows their current bedroom set. Essentially, credit cards can be a great tool as long as they are used responsibly.
Individuals and families can have problems when they spend more than they can afford to repay. Consumers who use credit responsibly tend to get very attractive credit card offers. Over time, this could result in a wallet full of credit cards, with available credit as high as $10,000 or even more. When credit card balances increase, so does the minimum monthly payment. Since interest charges are typically added to outstanding balances every month, it can get harder and harder to pay off excessive debts. If the primary wage earner in the family loses their job, a family can quickly get into financial trouble. Fortunately, Chapter 7 bankruptcy in St. Louis County MO is available for people who face this unfortunate situation.
Chapter 7 bankruptcy in St. Louis County MO gives people who qualify the opportunity to start over, without overwhelming debt. Of course, they have to give up their credit cards and the ability to buy the things they want and need without having to save. Without credit cards, people learn how to budget their money. This makes managing credit much easier when it’s available again. As time passes, credit card companies will make credit available. Limits are likely to be lower and interest rates higher, which means good financial management is essential to avoiding credit problems in the future. Individuals and couples that have gotten in over their heads in credit card debt can Visit Jerry Hoff Law to get in touch with an attorney who can explain the Chapter 7 bankruptcy process and walk them through the steps to file and regain their financial freedom.
