West Palm Beach Credit Card Debt Attorney
It is hard to avoid all types of debt and still live a robust, fulfilled, and engaged life. To be sure, most people have a mortgage, a car payment, or student loan debt. Additionally, many people have other types of loans. While some types of debt are considered “good” debts, one type of debt that can be dangerous is credit card debt. If you are facing large amounts of credit card debt, taking action to address that debt and get control of your financial situation is very important. At the law offices of Bruce S. Rosenwater & Associates, P.A., our West Palm Beach credit card debt attorneys can help you to understand your options for addressing credit card debt and put a viable plan in place.
The Basics of Credit Card Debt
Most people have a basic understanding of how credit cards work: A debtor uses funds supplied by a credit card company to make a purchase, and then the debtor is responsible for paying those funds back in full. If the debtor does not pay the funds back in full(which does not mean just making the minimum payment on borrowed funds), then interest on the amount borrowed will be assessed, often at exorbitantly high rates that far exceed interest rates on other types of debt, such as student loan or mortgage loan debt.
Credit card debt can become overwhelming when a debtor maxes out their lines of credit, especially on multiple credit cards, and has no source of income to pay back the credit in full. As such a debtor may resort to making only the minimum payments on their credit cards–or not making payments at all–resulting in quickly accruing interest. In a short amount of time, the debt may become insurmountable, and a debtor may be unsure of what to do.
Options for Getting Out from Under Credit Card Debt
The options that are available to you for getting out from under credit card debt will vary based on your income and assets and the amount of debt you’re facing. It is best to speak with a financial professional about your options first.
Some of the options for managing large amounts of credit card debt include:
- Try to pay more than the minimum amount owed each month;
- Make your payments automatic so that they immediately withdraw from your account;
- Consider consolidating your debts;
- Work with your creditors to create a plan for repaying debts – often, creditors are open to this idea as it means that they will get repaid in part rather than not at all;
- Stop using your credit cards; and
- Create a debt management plan with the help of a professional.
In addition to the above, another option for dealing with credit card debt may be to file a Chapter 7 or Chapter 13 bankruptcy. Our lawyers can help you to understand when bankruptcy may be the best option for you.
Call Today for Financial Guidance
If you have questions about how to manage your credit card debt and are thinking about filing for bankruptcy, call our lawyers today at the office of Bruce S. Rosenwater & Associates, P.A.