Although student loan debt has surpassed it nationally, people on average carry a lot of credit card debt. I see it most often as the driving force behind bankruptcies in the Gloucester County, New Jersey area.
However, problems can arise when people are "living on credit cards" to get by in a bad economy. It gets worse when it continues past the point where you are considering bankruptcy. Here's why.
- It Can Be Considered Fraud in Your Bankruptcy. If you use the card at a time where you cannot afford to pay the bill (despite your good intentions) it is considered fraud. If you rack up a significant amount of debt on any one card in the months leading up to your bankruptcy, it will be scrutinized.
- You Will Have to Stop Eventually. Once you file the bankruptcy, you will not be able to use the cards. Therefore, you might as well start getting used to not having them now.
One of the benefits that often come out of bankruptcy for people is the realization of how much credit cards were their downfall. Thus having to walk away from them is a good thing, and a step towards a better financial future.
So What Do I Do?
If you live in southern New Jersey and are thinking about bankruptcy, please call my office at 856-432-4113 or contact me through this site to schedule an appointment to discuss your options, and whether bankruptcy is right for you.
If you are looking for further information, please download my free book, Top Questions People Ask About Filing Bankruptcy in New Jersey.