The reckless debts from credit card use soon balloon up threatening your financial integrity. Dispensing the credit card bills every month takes away a major chunk of your monthly income. The credit companies change the rules of the game at whim, making homeowners vulnerable to legal repercussions. Most homeowners default on the monthly payment thereby adding to the financial burden as late penalties. Perhaps, it is the right time to apply for bankruptcy. Otherwise, you cannot just stop using the credit cards!
You have to follow the legal guidelines outlining your rights in such situations. Bankruptcy filing can be a good option to make a fresh start. The greatest benefit of filing for bankruptcy is the fact that the law would take away your rights to use the credit card. It is actually a good choice because now you can handle the debt with cash payments.
Evaluate your situation
Evaluate your situation with a credible consultancy service. You should not conceal the details of your financial situation with the consultant. Lay bare your bank account details and your credit situation. However, you need to find a reliable agency first. You need to ensure whether the company would be able to provide genuine assistance. There are several services without the minimum empathy to refrain from extorting payments from an underwater homeowner. See whether the website has a contact number. Contact the agency to assess their intention of assistance. Check the consultancy fees. Find whether the company can arrange a free initial consultation.
Types of bankruptcy
The law stipulates two types of bankruptcy requisites for the homeowners. These are the chapter 7 and chapter 13 bankruptcy filings. The first category involves the loans no credit check liquidation process. You need to find a veteran lawyer for your assistance. See whether the consultant can arrange good legal help. The service should have good contacts with the bank and other lenders to facilitate the procedure. The chapter 13 bankruptcy involves a legal rearrangement of debt. The lawyer would reach an agreement with the bank on your behalf. You receive an extended duration to discharge the debts. In both types of filings, you need to relinquish the credit cards.
Life without credit cards
Once upon a time, a few decades back, people used to pay everything in cash. Then the credit cards came along with the promise of easily available money. While it seemed very convenient at the beginning, now most homeowners would be happy to give up the cards and return to cash transactions. If you still want to use a card, explore the other options. See whether you can get a debit card from a reputed service. All major banks have debit card arrangements. Also, you need to continue on cash transactions.
Look up other homeowners considering the return to paper money. The community assistance can help you survive in the tough times. You would find several people in your area applying for bankruptcy. Contact them to discuss the situation. Maybe, the troubled families can come together in sharing the solutions of subsistence.