Whether you braved the crowds on Black Friday or shopped from the comfort of your home on Cyber Monday, it is likely that you spent your fair share of money on holiday gifts and used a credit card to purchase these items.
The problem with excessive holiday spending
Your credit card use at the time may not have seemed excessive until January rolls around and you find you spent much more than you could afford. This is not uncommon. Many people in Indianapolis find themselves facing significant credit card debt following the holidays.
Still, what if your holiday spending only added to untenable credit card bills? You may be so far into credit card debt that you can no longer make payments and are in default. If so, it only takes one more financial emergency to push you over the edge into insolvency.
Options for resolving credit card debt
When this happens, it is likely that you want to find some way out of the situation. You can try negotiating affordable payments with your credit card company, but they do not have to agree to lower payments if they do not want to.
Similarly, the credit card company may send the account to a collection agency. You can try to negotiate payments for a debt in collections but they do not have to accept less than what you owe.
You can seek the help of a debt settlement company, but some require you to pay upfront for their services and they often are unable to settle your debts in the end while you will still owe them a fee.
Filing for bankruptcy
Some people find success negotiating with the credit card company or collections agency. Some people find debt settlement companies to be helpful. Still, all these options carry significant risks.
Many people find that the better option is to file for Chapter 7 or Chapter 13 bankruptcy. Filing for bankruptcy sounds like a scary option, but it is often the most responsible step you can take.
In a Chapter 7 bankruptcy, your nonexempt assets will be liquidated, and the funds will be used to pay your credit card debt. In a Chapter 13 bankruptcy, you will enter into a repayment plan managed by a trustee to pay back what you can afford on your credit card debt.
Bankruptcy is worth considering. It is not perfect, but it is a viable way to resolve unmanageable debt.