For many Louisiana residents, using credit cards has become a normal part of everyday life. However, the ease of access credit cards provide for users also makes amassing debt easier. Those facing overwhelming amounts of debt may decide to explore all their options in regards to taking control of their debt. Bankruptcy is one possible solution some may choose for relief.
Credit cards are the preferred payment method for many Americans, and their popularity has caused the nation's highest debt figures since the financial crisis in 2008. According to the Federal Reserve, Americans in total now have $1.01 trillion worth of credit card debt. Those with rewards cards are often more likely to spend more money with credit cards so that they receive the awards. This can be beneficial for some, but it can lead to serious financial problems for others.
Consumers who are interested in managing their debt may choose to file for bankruptcy. The two most common types for individuals are Chapter 7 and Chapter 13. Under Chapter 7, all assets are liquidated and the debt is wiped out. For those with assets such as homes and property, Chapter 13 may be more beneficial. With Chapter 13, those who file are able to retain their assets and create a payment plan to pay back their debt over a specified period of time.
Knowing the available options could be the first steps for many to regain financial stability. Anyone interested in learning more about the different forms of bankruptcies and what benefits they may bring could consult an experienced Louisiana bankruptcy attorney. An attorney could asses a client's situation to help determine the best course of action.
Source: forbes.com, "This Week In Credit Card News: Credit Card Debt Keeps Rising; Why Lower Credit Limits Can Hurt You", Bill Hardekopf, June 30, 2017