Credit cards can be helpful tools for California consumers who want to build credit, collect reward points or even just bridge small gaps between paychecks. While credit cards can provide a number of benefits, they also have a number of drawbacks. Consumers who struggle to pay off their balances may be surprised to realize how much interest they end up paying every month. For some, it could end up leading toward Chapter 7 bankruptcy.
If getting out of debt was easy, far more people in California would be doing it. Unfortunately, while getting into debt can happen faster than most people realize, paying off that debt can become next to impossible for some people. These efforts are often further complicated by collection efforts, especially if recently proposed rules are put into place. What some people may not realize is that Chapter 7 bankruptcy can effectively stop harassing creditors from contacting them.
Before people in California file for bankruptcy they have usually spent a significant amount of time weighing their various options. While bankruptcy can be a necessary financial lifeline, figuring out which form to pursue can be confusing. Chapter 7 bankruptcy and Chapter 13 bankruptcy are the two main forms of personal bankruptcy, and here are a few key points about each.
Millennials are often blamed for any number of things, including taking down entire industries. From credit cards to divorce, news articles have placed an enormous amount of blame on this generation of young adults. But could they also soon be responsible for eliminating things like Chapter 7 bankruptcy? While some people in California might be hopeful, it is unlikely that it will happen.
Borrowing money is not necessarily a bad thing. From taking out mortgages to buy homes or auto loans for vehicles, borrowing can often feel like a necessary part of moving forward in life. However, for some people in California, what might have felt like relatively safe approaches to borrowing can quickly spiral out of control. In such instances, Chapter 7 bankruptcy can be a viable option for debt relief..
Falling deeper and deeper into credit card debt is easier than some California consumers might think. After all, credit card companies generally make special offers to their customers, including things like temporary low interest rates, rewards points and more. Unfortunately, spending in order to earn those rewards might not pay off. Instead, it could be leading some people further and further into the kind of debt that only Chapter 13 or Chapter 7 bankruptcy can address.
Car owners in California often take pride in their vehicles, but some may be struggling to keep up with their monthly payments. While owning a car is often necessary for employment, some people could see a large chunk of their paycheck going straight toward their auto loan. Although it is possible to eventually pay off a car in several years and live payment-free, getting to that point can be difficult. In such cases, Chapter 7 bankruptcy might be a better option.
Credit cards are a convenient way to help bridge the gap between expenses and income. Unfortunately, these handy cards also make it incredibly easy to get into debt. While anyone of any age in California can find themselves in need of debt relief through Chapter 7 bankruptcy, some people could be have more of a need than others.
Getting ahead in life often feels impossible. California consumers tend to grow frustrated when faced with the limitations of their own finances during certain times of the year, particularly those that involve traditions centered around shopping. As data from the 2018 holiday shopping season rolls in, it is possible that some consumers might need to consider the benefits of pursuing Chapter 7 bankruptcy.
Even though the process helps individuals re-establish their financial stability, many people in California still view bankruptcy in a negative light. Perhaps because of this viewpoint, recent reports that bankruptcy filings recently hit a 10-year low might seem like good news. While some people might be avoiding Chapter 13 or Chapter 7 bankruptcy because they are handling their debts well, many others might be facing obstacles that prevent them from seeking debt relief.