Hawley & Associates, LLC
Skilled Bankruptcy, Family Law And Criminal Defense In Prattville, Alabama

Signs your credit card debt has pushed you toward bankruptcy

Even if you believe you are responsible with your credit card, it is incredibly easy to end up in debt. Many people fail to read the fine print or fail to realize universal default still exists. All these can gradually push you more toward unmanageable debt where filing for bankruptcy may be your only option. 

Bankruptcy has helped numerous people around Alabama get their heads above water once again. However, you may be able to circumvent these issues if you recognize the signs of gradual debt ahead of time. 

You have begun missing payments

After a financial hardship, you may have to forego making a credit card payment. This is a bad sign because it means you will have interest tacked onto the amount you already owe. When you have to start deciding which bills you pay each month, it is a sign your debt has gotten out-of-hand.

You maxed out your credit cards

You have a limit on your credit cards, and it is ideal to only spend about 30 percent of that limit each month. There may be instances where you need to go above 30 percent, but if you have officially maxed out your credit cards, then you may need to file for bankruptcy just to stay afloat. 

You require high-cost loans

Without a credit card to continue to use, some people rely on payday loans to pay bills. The problem with payday loans is the fact that they come with insanely high interest rates. You could fall even more in debt this way. 

You have started getting phone calls from collectors

When you fall into too much debt, you can expect to start receiving phone calls from debt collectors, which mostly happens when your debt is 90 days past due. You may also start getting notices in the mail, and when that starts happening, you need to consider bankruptcy.

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