How to Better Manage Credit Card Debt

Relying on “plastic” can become a problem when credit card balances  grow too big or your income shrinks. Perhaps you lost your job or had  your hours cut. Maybe you were propping up a small business. Maybe you  had a medical crisis or other unexpected bills. Or perhaps you were  simply living beyond your means.

Whatever  the reason, your credit card debt is out of control. Bill collectors  are hounding you and threatening garnishment, liens, repossession or  other legal action. You are “robbing Peter to pay Paul” while the late  fees and interest pile up.

THERE IS HOPE! GET A FRESH START THROUGH BANKRUPTCY

The  Chicago bankruptcy attorneys of Robert J. Adams & Associates can  help you deal with all your debts. We have helped hundreds of Illinois  residents discharge credit card balances to reset their finances and end  the creditor harassment.

Complimentary Bankruptcy Consultation

Call  us today to discuss your debt relief options, at our offices in Chicago  (West Loop) or Waukegan. If you can’t afford the filing fee right now,  we may be able to get you started for Low Cost.

DOES MY CREDIT CARD DEBT JUST DISAPPEAR?

It  sounds too good to be true, but yes. The bankruptcy law was created to  give a fresh start to people who have gotten deep in debt with no hope  of paying it all back.

Unsecured debts such as credit card debt can be discharged (erased) in Chapter 7 bankruptcy.  Once the debt is legally forgiven, the credit card companies and  third-party collection agencies cannot pursue repayment. In fact, from  the day you file your bankruptcy petition, they must stop contacting  you.

If you are not a candidate for  Chapter 7, Chapter 13 bankruptcy puts you on an affordable payment plan.  Most people pay only a fraction of their total credit card debt.

IS THERE A LIMIT ON HOW MUCH I CAN DISCHARGE?

There  is no limit. Well, there is an upper limit, but unless you are a  “platinum card” world traveler you will not reach the maximum. We  regularly help clients discharge $5,000, $10,000 and even $30,000 or  more in credit card balances. Think of what it would mean for your  finances and your stress level to be rid of that burden.

GET THE FACTS AND GET RELIEF!

The  benefits of bankruptcy far outweigh the temporary downsides. You will  be able to get credit cards and loans in the future as you rebuild your  credit. See our Bankruptcy FAQ and bankruptcy blog for answers to many  of your questions.

Are you crushed under  credit card debt? Do you want to get rid of the credit card debt and  live peacefully? Call Robert J. Adams & Associates in Chicago, IL to  discuss your financial issues with our experienced debt relief and  bankruptcy attorneys. We have offices located in Waukegan and Lake  County, Illinois and we also help clients in surrounding areas. We have  experience aiding people with bankruptcy, debt relief, foreclosures,  repossessions, paycheck garnishments, collections suits, payday loans,  parking tickets, license suspensions, income tax problems and much more.  For a debt free NEW START, call today to speak to our experienced  bankruptcy lawyers and get out of credit card debt.

CREDIT CARDS AND THEIR TRAPS

Most  of us have credit cards. It is difficult to avoid them. Banks love them  because they get rich off of them. Folks become addicted to them and  wind up in a never ending spiral of high and unaffordable interest  payments.

THE COST AND GOOD OPTIONS

All studies show that folks spend more when they use credit cards as opposed to paying cash. Credit cards become addictive.

Banks  obtain money at extremely low rates. The Federal Reserve practically  gives them loans at almost no cost but then charge rate of interest  anywhere from 9% to 29% and sometimes even more.

HERE IS AN EXAMPLE OF HOW CREDIT CARD COMPANIES SQUEEZE THE CONSUMER

Balance  $ 3,939.4
Interest rate 14.4%

If you only pay the minimum it will take  16 years to pay it off for a total repayment of $7,601!

If you pay $136  it will take 3 years for a total of $4,881.00!

The  above does not take into account either additional use (more Charges)  or late payments or missed payments or over draft charges. To calculate  how long it would take to pay off your credit card balance, you can use  this handy calculator: www.federalreserve.gov

We  often see clients with much higher balances. What if your balances are  about $39,000? After 16 years you will pay the banks about $76,000.  Paying the balance in 3 years the total is about $48,000.

The one question you have to ask yourself: who can better use the money? You or the banks?

If  you cannot pay off your credit card balances in about 1 year you are a  candidate for a “fresh start” by filing a Chapter 7 or a Chapter 13.

If you find yourself in a credit card trap please feel free to call us. Our consultation is Complimentary and confidential.

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