Americans Are Deep In Credit Card Debt | Dig Yourself Out Before It Leads To Chapter 7 Chicago

24-Jun-2011 In the July 2011 issue of Woman's Day it was reported that the total national credit card debt in America is $794 billion. This staggering number equals out to about $10,115 in credit card debt for the average American household.

In the U.S. 54 million households carry credit card debt. Woman's Day reported that the first credit card came out in 1958 by American Express. It was eight years later that Americans were allowed to carry a balance with the BankAmericard.

The problem with spending with credit is that many Americans have gotten over their heads to the point that they are threatened with chapter 7 in Chicago.

Chapter 7 bankruptcy is the liquidation form of bankruptcy. That is because when you file for chapter 7 Chicago, a banruptcy trustee is assigned to your case and it is their job to liquidate your assets and use the money to make payments towards your creditors. Once you are dismissed with chapter 7 bankruptcy you are dismissed of all remaining debt. This is what makes chapter 7 so appealing to people with credit card debt.

Chapter 7 bankruptcy is a last resort. If you are struggling with credit card debt follow these tips outlined by Woman's Day to solve your credit card issues.

Get Credit Counseling - There are a lot of outlets for credit counseling in Chicago. Your bank may even offer these services. Find someone who will help you plan and manage your credit card debt. Beware of anyone that charges for these services or suggests you stop making payments in hopes of settling.

Come Up With A Plan - Creating a plan to pay off your debt is a big step. Some people try to pay off their card with the most debt first but it actually makes the best sense to pay off the card with the highest interest rate first. Then pay the minimum on the rest of your cards until you've paid that one off.

Quit Charging - If you are buying things with credit and then only making the minimum payment on your credit card then you are actually paying twice the price for each item you charge. The best thing you can do is stop charging your purchases and pay with cash or check.

Talk & Negotiate With Your Credit Card Company - Just because you already have debt on a credit card does not mean the company won't lower your interest rate. Call and ask. If you have good credit they will probably agree.

Consolidate - If you can get a credit card with a low interest rate put all of your credit card debt on that card. Make on time payments higher than the minimum.

Chang and Carlin
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.