More than 51 million Americans increased their credit card debt because of the coronavirus crisis. As a bankruptcy lawyer Memphis trusts, I hate to say I’m not surprised. In times of financial distress, credit cards are one of the easiest and fastest ways to access money. In fact, many of my clients wound up in major credit card debt following a life crisis that was out of their control.
Now, with the vaccine more widely available, hopefully brighter days are on the horizon. But unfortunately, we’re not quite there yet. Even with folks doing their best to tighten their financial belts, most people are still struggling with debt and relying on credit cards to make ends meet. Thankfully, there is a way out.
Bankruptcy offers lasting relief from credit card debt.
Bankruptcy is a tool that was created to help people escape from serious debt. Instead of feeling shame and hopelessness about your financial situation, bankruptcy can give you a sense of empowerment that you are regaining control. It’s also one of the fastest ways to achieve financial freedom.
Think of it like this: credit cards are one of the most expensive ways to borrow money, and they can take years to pay off. For example, let’s say you have a balance of $5,000 and you can only afford to make the minimum payments. Assuming you have an interest rate of about 16%, it would take you more than 15 years to pay the balance off. Those are frightening numbers, and they get worse if your balance is larger.
At Darrell Castle & Associates, we believe that no one should have to face a daunting financial situation like this just because they were trying to survive in a pandemic.
There are different bankruptcy options to fit you and your needs.
You have different options when filing for bankruptcy. One of our experienced and compassionate lawyers can discuss which type of bankruptcy might be best for you, based on your personal needs and circumstances.
A Chapter 7 bankruptcy allows you to get rid of credit card debt and medical debt without paying it back. Additionally, you can usually keep your property, like your home and your car. It has the power to stop debt collectors, wage garnishment, and creditor harassment in their tracks.
A Chapter 13 bankruptcy consolidates your debt into affordable monthly payments – the key word here being affordable – that allows you to become completely debt-free in a very short period of time, usually between three and five years. That’s one third of the time it would take you to pay off $5,000 of credit card debt, without the $5,400 in interest charges.
Give us a call today for a FREE consultation and restore your financial peace of mind.
If you’re experiencing serious credit card debt, contact us online or give us a call at (901) 327-2100 for a FREE consultation. We will answer any questions you have, help you create a plan for your specific situation, and restore a sense of hope.
Bankruptcy means that instead of living a life filled with anxiety and sleepless nights, you can finally let go of the financial worry and focus on building a debt-free future. I’ve helped thousands of folks get out of debt, build back their credit, and get the fresh start they deserve. I can do the same for you.