The charge card bills and loans come in, and you pay them dutifully. Then you need tires, so you place them on your charge. Next month, the charge card bills and loans come in. You pay them. And then it is time to get the kids some clothes, so you charge them. Thirty more days pass, and the charge card bills and loans come in. And of course, you pay them. But now there is almost nothing left over, you need groceries, so you go shop and pay for the groceries with your charge card. Does this sound like your situation?
Bells and whistles should be sounding in your head. If you need to pay for the above things by a charge card because you have no money left over in your budget, you should consider contacting us.
If you are paying for groceries with a credit card, you are not alone.
I had some clients visit me recently for a free consultation. They were both working, not making as much money as they would like, but still a decent amount. With kids, a couple of pets, and a house in a nice neighborhood, it sounded like an ideal setting.
But they are the living the life in the paragraphs that I described above. The bills come it, they pay them. Then they need something so they place it on the charge. Then the bills come in, and they pay them. They need something else and it goes on the charge. And so on. And so on. But the bills keep creeping up. They started out at just a few thousand, and then they reached $10,000. No matter; they could afford the monthly payments. And then they were $20,000. And they are still going up.
Now the monthly payments are much more than they ever anticipated, and they are scrambling. The charge cards are reaching their upper limits and they will not be able to charge their way out of the jams anymore.
That’s where we come in.
Bankruptcy Could be the Solution
We will look at possible solutions, including different forms of bankruptcy. Chapter 7 would enable them to get rid of the charge cards and loans. Chapter 13 would enable them to get into a payment plan that’s much less than they are paying now. In this case, Chapter 7 was appropriate. The clients were able to keep everything, even their house and cars.
They have now shaved $800.00 per month off their budget and are able to go to the grocery store and actually pay for their items without a charge card. They are able to save a bit of money so that the next car repair will not need to be paid out with a credit card. And I have shown them the way to build up that credit so, if there is an emergency in the future, they will be assured that they can get through that also.
Let’s see if we can help you. Instead of putting those groceries on your charge card, consider calling us.
We will give you food for thought.