Getting into credit card debt for some consumers is a vicious cycle that seems to be never-ending. Many people find that they rely on credit cards if they lose a job or have to take off of work. The credit card becomes the lifeline for food, utilities, housing, medical care and other necessities.
As the balance on the credit card goes up, so do the payments. When you are unable to make the payments, you might begin to fall into a financial crisis. Your charges on the credit card might have added amounts. You might notice all types of penalties and fees on your credit card statement. That means that you will end up paying a lot more than the purchase amount for the necessities you purchased with the credit card.
Missing a payment for your credit card can lead to even worse consequences. Your interest rate might be hiked up and you might face more fees and penalties because of the missed payment.
For people who are struggling with credit card debt, the desperation to get out of that debt is often overwhelming. When consumers hit that point, or even before that point, it is important to learn about the available options for controlling credit card debt and getting a fresh financial start.
Bankruptcy and alternatives to bankruptcy might help some consumers to take control of their financial situation. When considering these, make sure you don't fall for credit repair scams and other similar programs that are only out to take your money without providing you with the financial fresh start you desire.
Source: Huffington Post, "The Credit Card Debt Crisis: The Next Economic Domino," Ariana Huffington, accessed May. 07, 2015