Most everyone in America has some amount of credit card debt, and a lot of us don’t know how much is too much until we’re totally underwater. When you’re overwhelmed with credit card debt, filing for bankruptcy can help you get control over your finances. But do you have the right amount of debt to need this solution?
What Is a Healthy Amount of Credit Card Debt?
In my opinion as a bankruptcy lawyer, the best amount of credit card debt is always none. In other words, in the ideal world, you might use a credit card to build your credit or get benefits like cash rewards or miles, but you pay off your full balance every week or month so you never build up debt. Any money spent on the credit card is budgeted and accounted for.
That’s truly the best way to use a credit card if you choose to have one… but it’s just not reality for most Americans.
In fact, a recent survey from GOBankingRates found that “30% of Americans have between $1,001 and $5,000 in credit card debt, 15% have $5,001 or more in credit card debt and about 6% have more than $10,000 in credit card debt.”
These numbers have skyrocketed even higher during the pandemic. Right now, Americans shoulder over $800 billion in credit card debt.
Credit Card Debt and Filing Bankruptcy
Now, what happens when you have too much credit card debt to pay it all back?
There’s no minimum or maximum credit card debt in order to file bankruptcy, and different amounts of debt can affect people in different ways. For example, $7,000 in credit card debt would be catastrophic for a lot of people, but it might look different to a billionaire. So you have to think about your personal situation.
Generally, I would ask in what ways your debt impacts your life:
- Do you find yourself feeling anxious all the time about your debt?
- When thinking about the future, do you see no way you’ll ever pay it all off?
- Do you get calls from creditors?
- Is it possible you might lose your house or car?
- Do you find yourself wishing you could have a fresh start without this burden?
If you answered yes to any of those questions, you may want to think about bankruptcy.
Finding the Right Bankruptcy Lawyer for Your Needs
I’ve helped thousands of people get out of credit card debt, and over the years I’ve learned a lot about the right time to file. I’ve also learned that I can’t make people get a fresh start—you have to choose that for yourself. Bankruptcy is just the most powerful tool to help you get there.
If you’re in over your head with credit card debt and you need that fresh start, we’re here to help. We’ll sit down and chat with you about your options—totally free of charge.
Just give me a call at 901-327-2100 to get started or fill out the form below. It’s the first step to a life free of all your debt.