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Bankruptcy for out-of-control credit card debt

Numerous Tennessee residents use credit cards daily to cover their expenses. While there is nothing wrong with this, many of these individuals fail to pay their credit card bills off at the end of every month. This means that they are accruing significant interest by carrying balances on their cards. When let go for too long, this can bury them in serious debt. When credit card debt gets out of control, bankruptcy may offer debt relief.

Credit cards can be a great tool to have if used a certain way. However, according to a recent article, numerous consumers in America use their cards and only make the required minimum payments each month. Many of them do this without realizing that, by doing so, they are essentially paying double for their purchases thanks to the interest added over time.

For individuals with relatively low balances on their credit cards, one can save a lot of money by sticking to a strict budget and working toward paying down credit card balances as quickly as possible. For those with significant credit card debt and other financial concerns, this approach may not be enough to solve the issue. If the money is not there to make bigger payments, it is what it is. 

Bankruptcy is meant for individuals over their heads in debt. If approved, it can provide immediate relief and either allow for debt discharge or the forming of an affordable repayment plan. Many Tennessee residents may be afraid of bankruptcy. The truth is, there are goods and bads to pursuing this form of debt relief — one just needs to decide if the positives outweigh the negatives in his or her particular circumstances. Legal counsel can help one decide if bankruptcy is the right fit.