Credit card bills require payment of the underlying purchase, along with interest at rates which may exceed the combined interest for mortgages, vehicle loans and student loans. Debt consolidation is one strategy that can help prevent unreasonable credit card debt that can lead to bankruptcy or loss of property.
Many people in Chattanooga and Eastern Tennessee who wonder about filing a petition for bankruptcy are struggling under a mountain of credit card debt. They may have heard that bankruptcy offers protection from credit card companies that are trying to collect on these delinquent accounts, but they don't understand the process and may be skeptical about whether a bankruptcy petition will offer any protection. Any question about bankruptcy can be answered only with reference to the specific financial situation of any given person. But, a bankruptcy petition will bring all collection actions to a stop until the bankruptcy proceeding is complete. This is known as the "automatic stay."
People in Tennessee may find that having a credit card can be both a bonus and a burden. On one hand, credit cards can be useful when we are in a financial pinch and cannot afford to pay for something outright. If we pay the full balance of our credit cards each month, it can increase our credit score -- another bonus.
Even when a person makes a good living, financial troubles can make their way into his or her life. It is easy to charge items to a credit card. While this form of payment is useful in certain situations, it can get out of hand in others. This is where credit card debt can become an issue. While it is fine to have some balance of a card, carrying this balance over and continually adding to it can evolve into an unmanageable situation. This is when it may be appropriate for individuals in Tennessee to consider debt relief options.
Most people are not surprised when someone advises them not to rake up too much of debt on their credit cards, as repaying an enormous credit card debt can often bring about significant financial challenges. It seems, however, that many Americans, including many in Chattanooga and Hamilton, have been forced to turn to credit cards to get by. The result is that at the end of the fourth quarter of 2018 nationwide credit card debt stood at a staggering $870 billion.
A credit card can be an important tool in a Tennessee resident's financial plan. While cash can be used to make some small and moderately-sized purchases, it is often the case that individuals use their credit cards to make larger purchases so that they do not have to carry around excessive amounts of money. Also, credit cards help consumers facilitate online buying since they may be easily used during electronic transactions.
It is hard to imagine how a Tennessee resident may live in the modern world without a credit card. While it may be possible to write checks and pay cash for many of the expenses a person lives with on a daily basis, the ubiquity of online shopping, bill paying, and banking has made it convenient for individuals to manage transactions from home and without physical money. Credit cards can be an important part of a person's spending power and, when used responsibly, it may offer them opportunities to make purchases when it is convenient for them to do so.
If readers of this Tennessee bankruptcy and debt relief blog are anything like other Americans then they are probably bracing themselves for their coming credit card bills. With the holiday season in full swing many people turn to their credit cards to make purchases for their homes, their loved ones and themselves. Those purchases can add up fast and turn into massive credit card spending that can be hard to pay off.
When a new credit card bill arrives in a Tennessee resident's mail or a notification is delivered to their email account's inbox that they have a statement to review, a person can feel as though there is plenty of time for them to make their payment. It is often the case that credit card companies give their customers several weeks to get their payments in before they are considered late. Under the Credit Card Accountability Responsibility and Disclosure Act of 2009, better known as the Credit CARD Act, credit card lenders must send their bills to customers at least 21 days before the bills become due.
If a person falls behind on their payments for a financial obligation, such as credit card debt, they may receive notices from the lender who has backed the delinquent obligation. Hamilton residents may receive letters, phone calls, and emails about the status of their debts, as well as requests for payments. Some communications from creditors are permissible; others that are harassing are not.