Credit card debt is a problem that plagues many Americans. Residents of the San Antonio area certainly experience their share of this, as do many other Texans. It continues to be a problem, here and elsewhere, even as some measures of the economy slowly improve.
If your credit card debt has become unmanageable, filing for bankruptcy can be a good debt relief option. To be sure, it would be important to determine which type of consumer bankruptcy would be the best fit. Whether Chapter 7 or Chapter 13 would be preferable depends on your circumstances. Either way, an experienced bankruptcy lawyer can advise you on your options.
Why is it, though, that credit card debt remains such a problem? After all, in the wake of the Great Recession, having to cut spending and tighten belts is a familiar reality by now for millions of Americans. And the austerity even applies, at least in theory, to Uncle Sam as the federal government looks for ways to balance its budget after years of deficits.
Well, there are some good reasons why overall credit card debt remains high and is expected to increase throughout the year. For one thing, with so many people struggling to pay bills, credit cards can be a short-term lifeline when emergencies arise. The challenge, of course, is to deal with the debt, however, before it starts dragging down your financial life.
Another reason why credit card debt is so high is that the credit card industry remains very aggressive in marketing their product. In very simple terms, credit cards are a revenue center for banks. They help card issuers make a lot of money. New federal rules have placed limits on things like overdraft fees, but credit cards remain in many ways a cash cow for banks and other issuers.
Source: “Why More Americans Will Fall Behind on Credit-Card Bills This Year,” Time, Martha C. White, 1-7-13