You Have Options for Eliminating Debt
If you have been living off of your credit cards for monthly expenses, you are not alone. More Americans than ever are using credit cards for necessities such as groceries, gas and monthly bills. As you know, with late fees and increased annual percentage rates, a credit card balance can get out of control and quickly turn into unmanageable debt.
You could try to pay off the card, but if you can make only minimum payments, that may not be the best option. Talk to an Illinois bankruptcy attorney to find out other ways to eliminate credit card debt. To schedule a free consultation, please call The Law Offices of Chad M. Hayward, P.C., at 888-804-8641 or contact us online.
How Will You Pay the Balance?
Credit card debt is usually dischargeable under Chapter 7 bankruptcy unless the following apply:
- You took a large cash advance on the card within 90 days of filing for bankruptcy.
- You made a significant increase in purchases on the card shortly before filing.
- The card was obtained fraudulently.
Credit card debt is unsecured debt, which means there is no tangible collateral to secure the balance you owe. Under Chapter 7, unsecured debt is typically discharged (eliminated) and you do not have to pay it back.
Paying off credit card bills by making the minimum monthly payments is an option, but it can take years and cost you thousands of dollars in interest and fees. Please see the chart below for an example.
|
Credit card balance |
Interest rate | Monthly payment | To pay off |
Cost of interest |
| $15,000 | 19% | $375 | 64 months | $8,969 |
| $15,000 | 15% | $375 | 56 months | $5,934 |
This chart does not include late fees or other penalties that may be assessed by the card company, which could increase the total cost and time it takes to pay off the debt.
If bankruptcy is not right for you and you cannot afford to pay off the card on your own, you can consider debt consolidation. It is best to discuss this with an attorney to ensure you get a good deal and are not the victim of a scam.
Chicago Debt Relief Lawyer
Please call our office at 888-804-8641 to schedule a free consultation. We have offices in Chicago, Aurora, Joliet, Schaumburg, Palos Heights, Northbrook, Oakbrook and St. Charles.
