Credit cards can be a positive tool for increasing your purchasing power, breaking up large purchases into more manageable payments and boosting your credit score. However, it can be easy to get in over your head. If credit cards are taking over your life, you may want to talk to an attorney about bankruptcy. These are a few signs that it might be time to look into this option for getting your finances under control.
1. You Are Only Paying Your Minimum Payments
There's nothing wrong with making minimum payments on your credit cards when you're having a rough month, but if you never pay more than the minimum payment, you are probably digging yourself into a hole. Only paying the bare minimum can make it impossible for you to get your cards paid off, so you're only going to sink deeper and deeper into debt.
2. You Don't Pay All of Your Bills Each Month
When you have a lot of different credit card bills, it can be tough to pay them all each and every month. It can feel as if you are constantly receiving and paying bills and never getting ahead, and you might not be able to pay all of them each month. Unfortunately, if you don't pay all of your bills each month, then you could be facing a few problems. First of all, your interest is only going to grow more on bills that you aren't paying. Plus, your credit score could be negatively affected. You might also be receiving constant collection calls at home, your job and elsewhere, which can be stressful and embarrassing.
3. You're Using Your Credit Cards to "Get By"
Credit cards should be used to make large purchases or boost your credit score. If you're using your credit cards just to get by, then you're probably in a pretty bad financial situation. By having to pay interest on everything that you purchase, the situation is only going to get worse.
If credit cards have taken over your life, then you should know that you aren't alone. You could be wondering how you can continue living this way, but luckily, there is a solution. By seeing a bankruptcy lawyer and learning more about Chapter 7 bankruptcy and Chapter 13 bankruptcy, you can find out about options for improving your financial situation. For more information, contact a firm such as John G Rhyne Attorney At Law.