According to a recent news report, credit card interest rates are about to rise. This will really hurt those who are currently carrying balances and are unable to pay them off. For Michigan residents in this situation, bankruptcy law may be of benefit.
The Federal Reserve noted an increase in credit card spending in Nov. 2017. A sign, they say, that consumers are feeling more confident in the economy. Is that really the case, though?
National credit card debt has exceeded $1 trillion in the last few months. Is that a result of consumer confidence or just financial need? Pay is staying stagnant while the cost of everything is going up. While some credit card debt may be associated with consumer confidence, much of it may be attributed to monetary need.
What can people with credit card balances do? Before rates do go up, if at all possible, pay down balances or pay them off completely. This will help them save quite a bit over the years rather than making minimum payments and letting interest accrue. For those who cannot pay down their debts due to lack of funds, it is okay to look at debt relief options.
One of the most commonly used debt relief options in Michigan and elsewhere for credit card debt is Chapter 7 bankruptcy. This type of debt is dischargeable under bankruptcy law. The only catch is that one has to meet the income restrictions to qualify. An experienced bankruptcy attorney will have the ability to look over one's financial information and help one pursue a Chapter 7 bankruptcy or any other debt relief option that best suits the client's needs.
Source: USA Today, "Personal debt: Why now is a critical time to pay off credit cards", Sarah Skidmore Sell, Feb. 3, 2018