eightthirty
07-11-2006, 12:30 PM
» Significant credit card debt can put you at a markedly higher risk of bankruptcy.
Going bankrupt usually isn't the result of spending sprees. It's more commonly triggered by job loss, medical problems, or a divorce. Those hit by any of these misfortunes often turn to credit cards to stay afloat. But if they have trouble finding new sources of income or an illness keeps them off the job, they often cannot pay off their debt quickly, especially if their interest rate is high. "They get their feet tangled up in those high interest rates," says bankruptcy expert Elizabeth Warren (http://www.bankruptcylab.com/../interviews/warren.html), "and they just get sunk."
[Update: On October 17, 2005 a new federal bankruptcy law went into effect making it much more difficult to erase credit card debt by filing for bankruptcy.]
http://www.bankruptcylab.com/../art/blank.gif » You can get help.
Several trustworthy organizations exist that can advise people whose debt has spiraled out of control, or those who feel they've been treated unfairly by their credit card companies. For a list of groups offering free advice and for contact information on how to file a complaint if you feel you have been unfairly treated by your credit card company, read our suggestions on "Where To Go (http://www.bankruptcylab.com/../more/where.html)."
SOURCE (http://www.pbs.org)
Going bankrupt usually isn't the result of spending sprees. It's more commonly triggered by job loss, medical problems, or a divorce. Those hit by any of these misfortunes often turn to credit cards to stay afloat. But if they have trouble finding new sources of income or an illness keeps them off the job, they often cannot pay off their debt quickly, especially if their interest rate is high. "They get their feet tangled up in those high interest rates," says bankruptcy expert Elizabeth Warren (http://www.bankruptcylab.com/../interviews/warren.html), "and they just get sunk."
[Update: On October 17, 2005 a new federal bankruptcy law went into effect making it much more difficult to erase credit card debt by filing for bankruptcy.]
http://www.bankruptcylab.com/../art/blank.gif » You can get help.
Several trustworthy organizations exist that can advise people whose debt has spiraled out of control, or those who feel they've been treated unfairly by their credit card companies. For a list of groups offering free advice and for contact information on how to file a complaint if you feel you have been unfairly treated by your credit card company, read our suggestions on "Where To Go (http://www.bankruptcylab.com/../more/where.html)."
SOURCE (http://www.pbs.org)