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.
While any Escondido residents who take a stand and attempt to face their financial challenges can be lauded, it is important to take the right approach to these issues. For some people, it is not too late to turn around their finances without the need to file for bankruptcy. Consolidating credit card debt, typically through a debt consolidation loan, may be an option for those who have a good job and a steady income, and who just want to get the debt paid off quicker. The biggest benefit of consolidating credit card debt is that all of the debt will be in one place, usually with a much lower interest rate, which can save an Escondido resident money over time.
However, the fact is that even if the credit card debt is consolidated, it is still there. The debt is still owed. For those Escondido residents who don't think they will ever be able to pay off their credit card debt, regardless of the reason, filing for bankruptcy may be an option to consider.
When an Escondido resident files for bankruptcy -- Chapter 7 bankruptcy, in particular -- the credit card debt that is not paid off from the liquidation of assets will be discharged. After the bankruptcy process is complete, the filer can start again with a clean slate.
Source: Forbes, "The Risk And Rewards Of Consolidating Credit Card Debt," Nick Clements, March 25, 2016