One of the major reasons why people fall into a situation where they are left with no other option but to file for bankruptcy is the misuse of the credit cards. However, the good news is that if you are a bit careful in your actions associated with the use of credit cards and use some bankruptcy alternatives, you can easily avoid being declared as bankrupt by the court. For a common person, being declared as bankrupt may sound like an easy way to get rid of the huge piles of debts that they owe to the various creditors.
However, this is not true. In fact, if a debtor is declared as bankrupt, his or her financial life will be in a very dilapidated situation for the next ten years, at least. In America, for a common person, most of the things run on credit, but the bankruptcy will badly affect your credit score and credit capabilities. There are many other financial and social impacts. That is the reason; why prudent people always try to use some bankruptcy alternatives rather than directly going ahead and complete the bankruptcy filing process.
Keep a Constant Watch on the Outstanding Balances
Credit cards have emerged as a very convenient means of money transaction. However, if you mismanage its use, it may put you in a deep financial trouble in the end. Therefore, it is always a great idea to use credit cards as per your necessity. Some people try to show off by having multiple credit cards from various credit card companies. They never look at the rapidly increasing outstanding balances. They awake only when it is time to repay the amount and they start getting calls from the collection agency. Therefore, in order to avoid such unpleasant circumstances, you must use a bankruptcy alternative and make sure that you are not exceeding the outstanding balances from a set level, as per your financial capabilities.
Never Pay One Credit Card Debt with another Credit Card
Some people try to be over smart by trying to pay one credit card debt with another credit card. Here, you must note that the credit cards charge a very high rate of interest and paying one credit bill with another credit card will only put you in a much deeper financial crisis. In the end, you will find that instead of reducing the credit card debt, such action has in fact increased the overall debt substantially. Therefore, as a bankruptcy alternative, you should never do the mistake of paying one credit card debts with another credit card. It is not very prudent if you do so.
There is no separate chapter in the bankruptcy laws that deal with the bankruptcy caused by huge credit card debts.
Credit cards were introduced as convenient means of money transaction, but people started misusing the same and it resulted in forcing people towards filing bankruptcy. Therefore, if you want to avoid such bankruptcy, make sure that you look into the various bankruptcy alternatives as per the laws. Bankruptcy provides more information on this issue and guides you on the need and role of a competent bankruptcy attorney.
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