There are many different underlying reasons why people sometimes fall into unmanageable credit card debt: overspending, loss of income, unforeseen expenses. Before long, a person has exceeded their credit limit and the minimum payment is no longer just a drop in the bucket. Getting additional credit cards compounds the problem. In fairness, the credit card companies certainly set enticing traps on an ongoing basis as they continually dangle new credit offers.
Excessive credit card usage is certainly the root cause of some financial calamities, but many people fall into debt that they cannot handle through no fault of their own. Medical conditions that result in costly health care bills can lead to overwhelming credit card debt, and a period of unemployment can be another underlying cause.
If you do find yourself with credit card debt that you cannot pay, some credit card companies will work with you to one extent or another. The possible courses of action depend on the policies of the company, the amount of the debt, and the repayment time frame. If you are going to be late for the first time, but you will be able to make a payment a week or two after the due date, the company may be willing to change the payment date. When you are negotiating with your credit card settlement, you may ask them if they will be willing to reduce the interest rate or accept a lump-sum settlement of the debt.
Bankruptcy is also an option, and it can be a more attractive one when certain circumstances exist. With a Chapter 7 bankruptcy, your credit card debt can be completely discharged which can be a huge relief. If you would like to discuss the possibilities with our firm, we will be more than glad to assist you. We can discuss with you the pros and cons of settlement verses bankruptcy. We offer free, no obligation case evaluations to people in Portland, Eugene, Medford, and residents of most other metropolitan areas in the state of Oregon. To set up an appointment, send us a message through our case evaluation request page.