The CARD Act is a federal law that many of our readers may not be familiar with, although previous posts here have discussed some of the more important aspects of the law. However, even if Escondido residents have never heard of this law, they may have seen some of the changes that were implemented by this law when they open their credit card bills every month.
Facing financial challenges and coming to the determination that bankruptcy is an appropriate option is a big step for Escondido residents who find themselves facing seemingly insurmountable debt problems. But for many people, the most daunting part of filing for bankruptcy is the prospect of rebuilding credit after the filing is complete. An Escondido resident who is about to file for bankruptcy may already have poor credit, and it may seem like there will be no chance of building up their credit score after bankruptcy. But, in reality, there are incremental steps that can be taken very soon after a bankruptcy case is over that may help rebuild credit.
A recent post here covered the burgeoning reports of the increase in credit card debt in America. Seeing those reports can make a person wonder, just how high will credit card debt get in our country? But, for any Escondido resident who is already dealing with mounting credit card debt, the better question may be, what can I do about my own credit card debt issues? For some people, the choice may come down to filing for bankruptcy or attempting to consolidate their credit card debt.
Most of our Escondido readers have heard many of the news reports that student loan debt is reaching an incredibly high overall amount from borrowers in America, and is becoming quite a burden. But credit card debt is rising too in San Diego and the United States. And that has some professionals asking, just how high could credit card debt in America get and what does it mean for the nation's economy?
Our Escondido readers who are familiar with previous posts on this blog may know that filing for bankruptcy is not the financial "bombshell" that many people make it out to be. In fact, these laws are intended to help consumers face their financial challenges, get out from under the burden of overwhelming debt and move forward in life free from creditor harassment.
With the holiday season well underway at this point, there are probably quite a few Escondido residents who are beginning to rack up credit card debt. For some people, the credit card balances will be paid off in full when January comes around, and they will go about their usual financial practices. But, for others, the debt is simply added on top of existing credit card debt, and the balances roll over every month. This can not only result in higher minimum monthly payments, it can also result in a hit to your credit score.
Many of our Escondido readers probably get several credit card statements each month, some with upwards of seven or eight different credit cards. And, anyone with even a halfway decent credit score will likely receive five or six different offers for even more credit cards in the mail every month. Credit cards can be useful financial tools, but they can also lead to some serious financial challenges if they are relied upon too much.
Millions of Americans have gone through the bankruptcy process, eliminating debt and getting a fresh start. Our readers who are familiar with previous posts here probably know by now that there are a variety of benefits that Escondido residents could take advantage of in a bankruptcy filing: wiping out debt, putting an end to creditor harassment and doing away with the monthly angst of not being able to make even minimum payments on debts.
Some San Diegans struggle with credit card debt in different ways. For some people, the problem is all about the sheer amount of debt. For others, the problem is remembering to make payments every month, on time. The difference between these two problems is that even if people have a large overall amount of debt, sometimes, as long as they make at least the minimum monthly payment, and they pay it on time, their credit score will not take too much of a beating. That is not always the case with delinquent payments.
Most of our Escondido readers know that one of the most important things to do in the wake of a bankruptcy filing is to begin working on rebuilding credit - and possibly even improving it. Previous posts here have made it clear that the common belief that a person will have to deal with poor credit for a period of time after a bankruptcy filing is not a myth. However, that doesn't mean that the road to recovery is impossible.