Struggling With Credit Card Debt – Is Bankruptcy The Answer?

When the recession hit in 2008 it took many people by surprise and some thinking that the recession would be short lived used their credit cards to tide them over while others were forced to use their credit cards simply to put on the table. By the time it became obvious that the recession was going to last years many of these people and families found themselves struggling with credit card debts that they simply couldn’t seem to pay off.

Today many of those people feel over their heads in credit card debt and no longer feel that is there anyway out. After four years of struggling with credit card debt, worry, and frustration, they find themselves wondering if bankruptcy is the answer to their problems. In many cases it may well be. For some families who have been out of work most of the last four years the interest on those credit cards have built up so high that no amount of negotiations with the credit card companies are going to lower those credit card bills enough that they will ever get out of debt. At least not in the foreseeable future.

However, for many other families who feel they are struggling with credit card debt the solution may be a matter of adjusting priorities and starting to live within your means. It is somewhat surprising the number of people who complain they are unable to meet their credit card debts, yet spend thousands of dollars on Christmas gifts, continue to dine out on a regular basis, and take vacation and week-end get aways. For these people, the solution is getting some credit counseling, establishing a budget, and setting their priorities to pay off their debts.

Those credit card debts aren’t going to disappear no matter how much you may wish that they would do so. It is up to you to looked at your situation carefully, decide what your options are and then form a plan on how to deal with that debt. For some people that may mean giving up a few of those extras you have come to depend on having. For others it may mean making some very real short term sacrifices to get on the road to financial recovering and for others the answer may well be filing for bankruptcy and starting again. How you deal with that credit card debt is entirely up to you.

Avoiding Credit Card Debt

For those that are new to the credit card world, there are a few things that they need to realize in order to avoid getting themselves into credit card debt that will hurt their credit and greatly affect their lives. For one, the person should not think that they have unlimited funds when they first get that little piece of plastic in the mail. This is the main problem that people have when they get credit cards. They approach something and know that they do not have the money to buy it, yet they end up charging it because they can. This can get the person in more debt at a fast rate that they barely realize that something is wrong when this happens.

Secondly, the person should look at the credit card as an emergency funding. This can help to make sure that you are not getting yourself into too much debt in the long run. If you find that you must use the card, then the person should do their best to pay this back as soon as possible in order to avoid paying more interest over time, which means paying more money in the end.

If the person is using this credit card for purchases in order to get the bonus perks such as cash back or so forth, then they should be certain that they are only using it to the point in which they can pay the balance off at the end of each month. If they are finding that this is impossible to do, then they know that they are using the credit card too much.

The person should make sure that they are ready to handle a credit card. If they believe that this is just going to be too much responsibility, then they should avoid the card until they are mature enough to handle it. This can save those tons of trouble in the long run and be something that they will be grateful that they did later in life when they are not struggling with keeping their head above the rising credit card debt that they have. Overall, it is possible to have a credit card and to not fall for the debt that so many other people fall for, the person simply has to take their time to adjust their lifestyle accordingly.

Tips and Information on How To Clear Your Credit Card Debts