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Navigating out of credit card debt

On Behalf of | Nov 7, 2018 | Personal Bankruptcy |

For many people in Virginia, debt is becoming a growing crisis. In the first quarter of 2018 alone, household debt increased by $63 billion in total across the United States. This marked the 15th consecutive quarter of growing debt burdens for consumers across the country. In total, Americans have $13.21 trillion in personal debt, including $815 billion in credit card debt and $1.23 trillion in auto loan debt. For many people, debt can seem manageable for a time, but when a crisis hits, it gets harder and harder to pay the bills each month.

People can take action to maximize their financial planning in order to pay down their debt and escape its crushing burden. In many cases, it’s important to target the types of debt with the highest interest rates first. Otherwise, compounding interest will continue to rise dramatically with little to no benefit to the consumer. In addition, people can benefit from a thorough review of their financial situations. Debtors should obtain a copy of their credit report and list the types of debts they have as well as the outstanding balance and interest rates. This can help people to craft a plan for repayment.

In some cases, however, it may seem impossible to escape the burden of debt. A job loss or significant medical bills can wreak havoc on a person’s ability to repay their credit card debt or other loans. Personal bankruptcy is one option that may help people find debt relief although it is rarely applicable to student loans.

When people are struggling under massive amounts of credit card bills or medical debt, bankruptcy might be a means to a new financial future. A bankruptcy lawyer may provide advice on the risks and complications as well as explain how it could provide a fresh start.

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