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Pay off the credit card or carry a balance from month to month?

After a Chapter 7 bankruptcy, many people face the prospect of rebuilding their credit. Many financial experts would probably tell our Escondido that this is a difficult task that will take years to accomplish. However, once someone has that fresh start that a discharge of debt through bankruptcy offers, they will usually be more receptive to advice on how to manage their finances and, eventually, how to manage credit cards.

A recent article focused on how credit card users can avoid getting too deeply into debt. The article came in the wake of recent surveys that indicated about 20 percent of credit card users think that it is acceptable to carry balances from month to month. But, at the same time, others surveys indicated that approximately 60 percent of people who believe their financial situation has improved in recent years pay off credit card balances in full each month.

Credit card use can be a tricky subject, because in the current economy, which remains stagnant at best, millions of Americans rely on credit cards simply to pay for the necessities while the rest of their income is devoted to paying household bills. Others need to rely on credit cards when sudden, unexpected medical emergencies arise. When individuals and families face these kinds of stressful financial situations, sometimes paying off the credit card bill each month isn't feasible

No one will argue against "responsible" use of credit cards. But "responsible" can be a relative term, and sometimes credit card debt gets out of control too quickly. Fortunately, when that occurs, Chapter 7 bankruptcy could be an option that lets an individual or family right their financial ship.

Source:, "How to Avoid Credit Card Debt," Kimberly Palmer, Sept. 25, 2013

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