Bankruptcy: Credit Card Debts Can Put a Strain on Finances

When facing periods of financial strain, many individuals in Ohio and elsewhere may turn to credit cards in their time of need. While similar lines of credit may provide immediate financial assistance, the relief may only be temporary. With average interests rates on similar accounts coming in at nearly 17 percent, issues with high amounts of credit card debt may leave many in search of relief through bankruptcy.

Credit card debts remain one of the leading causes of financial strain across the nation, and recent studies indicate that Americans paid just over $100 billion in interest alone over a recent 12 month period. Those who struggle to make payments on credit accounts may initially choose to pursue relief through a variety of methods, such as a personal loan. Since the interest rates on a loan may be significantly lower, those who qualify could use this as a financial tool to pay off high-risk debts.

Another potential option is to transfer credit card balances to a new account with a period free of interest. This could provide a person with time to pay off the balance before promotions come to an end. However, for those who are struggling to get by, this may only act as a temporary solution, and if the balance is not paid in full by the end of a promotion, the results could be devastating.

When dealing with high amounts of credit card debt, deciding on a path for relief can be an intimidating process. With numerous available options, each of which may have its own potential advantages and disadvantages, a person in Ohio could benefit from consulting with an attorney for guidance. A bankruptcy attorney can evaluate a client’s financial situation and assist him or her in forming a strategy to reduce or eliminate credit card debts.