Residents of Louisiana whose financial circumstances have unexpectedly changed for the worse may be concerned about their credit card payments falling behind. Whether the difficulties followed job loss or unexpected medical emergencies, remedies are available. While many people choose to try other options first, some consumers find the protection offered by bankruptcy to be most appropriate.
The consequences of unpaid credit card payments can have extensive consequences that may affect various aspects of a person's life. As soon as credit card payments are 60 days late, the card company will likely increase the interest rate to the highest level, along with late fees. When payments are behind for 90 days, the company may decide to close the account, and it may affect other cards the consumer holds.
Furthermore, the person's employment could even be affected, along with rent or mortgage. The consumer's credit score will likely drop, and this will show up when background checks are done for job applications or when property owners or mortgage companies do such checks. If a mortgage is obtainable, the interest is typically very high when the applicant has a low credit score. Cell phone and utility companies typically do credit checks, so obtaining those services may also be problematic.
By consulting with an experienced Louisiana bankruptcy attorney, a consumer facing overwhelming credit card debt may find a remedy that may provide a fresh financial start. A skilled attorney can explain the different options and the pros and cons of Chapter 13 and Chapter 7 bankruptcy. Full understanding of the options may lead to informed decisions that could lead to regained financial stability.
Source: mybanktracker.com, "Unexpected Ways You Are Affected by Late Payments", Katherine Muniz Katherine, Accessed on Feb. 3, 2017