Louisiana consumers with credit card debt who suffered job losses, wage cuts or other financial emergencies will likely be looking for methods to remedy their dire situations. Different debt relief options may suit the circumstances of some, but none of them is a quick fix. Careful consideration is necessary because the chosen method may cause even more hardship as time goes by, and to compare the available options with the protection offered by the U.S. Bankruptcy code may be informative.
Some consumers choose to put off the inevitable by maintaining only minimum payments on their credit cards. Although the credit card companies require no more than that and even encourage people to do that, it can be detrimental in the end. With the current interest rates on credit card debt, paying off $40,000 may take 40 years – and that is if no further credit card purchases are made throughout that period and if no payments are missed or late. At the end of the 40 years, the total paid amount could be as much as $130,000 — not considering interest rate increases.
However, this method could be an effective interim remedy for a consumer who is expecting an inheritance or another financial windfall. If such funds can be used to settle the credit card debt, the strategy might prevent any collection or other action taken by the credit card company. If not, it may be wise to research other options.
It might be informative to discuss debt relief options with an experienced Louisiana bankruptcy attorney. A lawyer can explain the available options and the pros and cons of each to allow the consumer to make informed choices. With the appropriate legal guidance and support, consumers with overwhelming credit card debt may find the suitable solutions that may lead to regained financial stability.
Source: timberlinefinancial.com, “Debt Relief Options”, Accessed on Dec. 16, 2016