Have you ever had the impression that credit card banks routinely offer customers and potential customers way more credit than they should? It is not an illusion. Every year, credit card companies extend offers which, if consumers accepted them all, would total billions of dollars. People trying to juggle expenses receive very tempting offers, accept the new credit cards, start using them for this and that, and before they know it, find themselves in debt they never planned on.
Aggressive Marketing Campaigns Lure Many People Into Credit Card Debt
Many credit card companies such as HSBC, Chase and Capital One deliberately target young people with personal appeals on college campuses. In other types of credit card marketing campaigns, credit card banks go after consumers with balances on other cards, luring them with irresistible offers to transfer balances. Sometimes free gifts or many months of zero percent interest are part of a balance transfer offer. Before long, many consumers find themselves in over their heads in debt.
The Unexpected Leads to the Unfortunate
People often pledge to use their new credit cards only for emergencies or to finance vacations at initially low interest rates that many credit card companies offer. As the cost of living rises or financial challenges come along (such as medical expenses, salary reductions or needed home repairs), the credit card holders tend to make smaller payments on their card balances "temporarily" as a remedy for money problems that they hope will be temporary.
Learn This Lesson Well: Credit Card Companies Are Not Your Friends
Meanwhile, credit card companies may raise interest rates on short notice. If a cardholder makes a late payment — even one day late, or even because of a mail hold-up — then interest rates skyrocket, along with interest rates of cards issued by other credit card companies.
What Is Your Story? How Did You Accumulate Too Much Credit Card Debt?
These are just a few scenarios by which unsuspecting consumers, trying to play by the rules, get caught red-handed with excessive credit card debt. A tipping point — such as a need for a car repair, loss of a second job or an impending divorce — triggers financial trouble for many credit card holders. Many turn to Chapter 7 or Chapter 13 bankruptcy and find answers through credit card debt discharge or debt reorganization.
Talk to a New York Attorney for Help Filing Bankruptcy
Our lawyers are well familiar with the effects of the credit card trap that snags all too many Americans — and we know the way to credit card debt relief. We pride ourselves on our Poughkeepsie law firm's personalized, friendly service. If you are facing financial distress as a result of burdensome credit card debt, contact us so that we can make an appointment to evaluate your situation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
