Bankruptcy INK

The need for bankruptcy relief can be brought about my many different reasons. One very common reason is credit card debt. In many bankruptcy cases I have seen filed in Illinois, credit card debt forces an unassuming consumer into a terrible financial situation. This is no accident.

Credit card companies have many tricks that they use which cause the consumer to rack up charges that they can not keep up with. They charge fees such as annual fees, start up fees and over-limit fees. Additionally, they apply ridiculously high interests rates to credit card purchases and cash advances. In a recent article published by the Nation, an individual’s struggle with credit card debt was recounted. “He wound up paying $6,300 on a $3,200 debt on a credit card issued by J.P. Morgan Chase & Co., and still owed $4,400. He was charged $4,900 in interest, $1,100 in late fees and $1,500 in over-the-limit fees.” This is an all too common story.

Moreover, credit card companies are starting to seek out individuals whom they know will struggle to repay their credit cards or loans. “These days, banks search for people who cannot pay them back and lend them money anyhow. These unsecured loans come in the form of credit cards. And the banks cannot find enough young people, students, sick people and old people on small fixed incomes to give credit cards to.”

Be wary of credit cards, and the harm they can cause. Always scrutinize any credit card offer very carefully and understand the risks involved in using credit. Bankruptcy relief can help you if these debts get out of hand, but avoiding financial troubles all together is clearly preferable. For those of you that are in this sort of financial trouble, avail yourselves of bankruptcy relief through a proper bankruptcy attorney.