There are many advantages to having credit cards and likely just as many reasons not to have them. The successful navigation of credit card debt depends on the account holder’s ability to manage the payments. Many Ohio consumers file for bankruptcy protection to responsibly address past due payments that have simply become unmanageable. Often, the situation arises when unanticipated medical or other emergency expenses were charged to a card.
The best option, of course, is to pay the full outstanding amount every month. Some even suggest that, although it is called a credit card, it should never actually be used for credit. Typically, interest is only charged on balances that remain unpaid at the end of the month.
Consumers are often tempted by special rewards and deals that prompt them to use the cards. For all the convenience this form of credit offers, interest accumulates rapidly once the full balance due is not remitted. Late payments will adversely affect one’s credit scores, limiting opportunities to obtain a home mortgage, auto loan or even to rent an apartment.
Consumers in Ohio who are overwhelmed by credit card debt might have tried various alternatives to effectively deal with the issue. Unfortunately, most options are time-consuming, and the card holder remains exposed to the wrath of debt collectors. A consultation with an experienced bankruptcy attorney may provide valuable information related to the protection offered by the U.S. Bankruptcy Code and the opportunity to have credit card debt and other financial obligations discharged.
Source: The Boston Globe, “Credit card confusion? Here are the basics”, Isvari Mohan, July 7, 2016