If you are barely able to make the minimum payments on your credit card, you might feel like you are flailing about in a never-ending cycle of debt that only ever seems to get worse. Credit cards have a higher interest rate than most financial products and, moreover, when you do not pay off the full balance every month, it keeps piling on. In the long run, paying off only the minimum can result in you paying off far more than what you owe when you factor in the interest.
For example, if you owed $5,000 on a credit card that had a 17% interest rate, it would take close to two decades to pay over $11,000 in interest. If you find yourself in a predicament like this, it might be in your best interest to file for bankruptcy rather than let the credit card company make a killing off of you.
When You Should File for Bankruptcy
Filing for bankruptcy is a big decision. Having to be more frugal for a couple of months to catch up on your payments does not mean you should file for bankruptcy. However, if you are struggling to make payments on your credit cards and are essentially only able to pay off interest, it might be better to file for bankruptcy.
Ask yourself the following questions:
- Can you afford to pay your debts?
- Are debt collectors harassing you?
- How much non-exempt property do you own?
Depending on the answers to these questions, you might be able to file either a Chapter 7 or a Chapter 13 bankruptcy. However, to ensure you are making the best decision for your circumstances, it is crucial to reach out to a bankruptcy attorney to assist you throughout this complex process.
Speak to a Rancho Cucamonga Bankruptcy Attorney Today!
Credit card debt is stressful and can make a person feel hopeless or afraid of the future. With the assistance of an experienced bankruptcy attorney, however, you can find relief. At Nguyen Law Group in Rancho Cucamonga, our team will provide the knowledgeable advice you need to make the best decision for your financial future.
Call us today at (909) 328-6280 to schedule a free and confidential case review.