Using credit cards is a natural part of life for many people, and they can be a very handy tool in many situations. However, if you are like many people, you may have found yourself buried in debt due to your lines of credit. If you get yourself in too much trouble with credit cards, however, you should know that it can be next to impossible to dig yourself out of the hole that you're in. In these situations, filing bankruptcy can help. These are a five signs that you might never get your credit cards paid off without a little bit of assistance.
1. You Only Pay the Minimum Balance It can be helpful to have a low minimum balance for your credit cards; then, if you have a tough month, you won't have to stress over paying for all of the things that you have paid for with credit. However, if you find yourself only paying the minimum balance every month, then you should know that interest charges are probably racking up more than you think. If you are only able to pay the minimum balance on your cards month after month, then you have something to worry about.
2. You Have High Interest Rates Some credit cards offer very appealing interest rates, and some even start their customers out with zero percent interest for a set length of time. If you have "bad credit" credit cards or didn't shop around for the lowest rate, however, you could be paying way too much in interest. Unless you're able to pay your full balance off every month, high interest rates can be killer.
3. Some Months, You Don't Pay All of Your Bills Monthly bills are just that—monthly—and they should be paid every month. If you don't have enough cash to go around and find yourself picking and choosing which bills to pay each month, then you're going to have a tough time maintaining a decent credit score or getting your cards and other bills paid off.
4. You Get Constant Collections Calls It's not abnormal to get a call every now and then to remind you about a bill that you haven't paid. If your phone is being flooded with collections calls all day, every day, then something is probably amiss with your credit cards and other debts. Luckily, if you file bankruptcy, your bankruptcy lawyer can help put a stop to these calls immediately, so you should know that there are ways to get some relief.
5. You're Using Your Credit Cards to Pay for Day-to-Day Expenses Many people use credit cards to fund vacations, holiday gifts or big purchases. If you're using your credit card on a daily basis to pay your bills or cover your groceries, however, then you're probably digging a hole that's going to be difficult to get out of. Unless you pay that balance off every month in full, it might be time to consider filing bankruptcy.
Credit cards aren't inherently bad, but they can get you in a lot of trouble if you aren't careful. If you are dealing with any or all of these five situations, then it might be time to talk to a bankruptcy lawyer from a firm like FactorLaw about filing bankruptcy.
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