It can be hard to recognize when your financial situation has gotten bad enough that you need professional help. If you find yourself paying for necessities, like groceries, gas or prescriptions with credit cards, it is almost certainly time for you to consider talking with Steidl & Steinberg about filing for bankruptcy.
So many of our clients are in this position when I initially meet with them. They pay the monthly minimum on their credit cards faithfully, but so much of their income is eaten up by the credit card payments that they have to turn right back around and use the little available balance freed up by the payment to pay for basic living expenses.
Despite the fact that some people may think they have their debt under control as long as they are able to make their minimum payments, nothing could be further from the truth. With the high interest rates on credit cards these days, it would take 15-20 years to pay off a large balance on a credit card by only making the minimum payment. Also, if creditors suspect you aren’t a good credit risk, they will lower your available limit down to your balance, ending your ability to continue the pay and charge routine.
How Can Bankruptcy Help?
This is an endless destructive cycle that will likely only be broken if you have a sizable improvement in your income or you file for bankruptcy. As much as we’d all like to think that next big raise or promotion is right around the corner, it’s just not in the cards for most of us.
Depending on what type of bankruptcy you qualify for, you can eliminate your credit card debt or get help restructuring it in a way that will allow you to be able to afford your living expenses. You can meet with an attorney at Steidl & Steinberg for free to learn about your options.
Let’s do away with thinking that paying the minimum payments on your credit cards is winning. Do you want to still be paying for that lunch at McDonald’s 20 years from now? I don’t think so.