It is easy to treat credit cards like free money. Although we promise ourselves that the bill will be paid off at the end of the month, sometimes it’s just too easy to put that one additional purchase on a card, leading to higher minimum payments are more money owed in interest.
Avoiding Credit Card Default
A credit card will be in “default” if an individual fails to make a payment between 30 and 60 days after the due date. The most immediate effect of defaulting on a card is acquiring a higher monthly payment. Depending on the balance of a card, you may be looking at a hundred dollars a month added to your existing payments. When a bill hasn’t been paid for over 180 days, credit card companies will hire a debt collection agency to help them get their money.
There are several ways to avoid defaulting on credit cards. By only spending as much money as you have in cash, you will be able to pay the balance every month. If you have to use a credit card in an emergency, it is important that you know the exact interest rate on your card so that you can budget for these costs. Unfortunately, mistakes in the past cannot be changed. If you are having trouble coping with your past financial decisions, you do have options for getting your finances back in order.
If you are going through difficult financial times, it may be time to speak to a Milwaukee bankruptcy attorney. If your credit card payments are causing you severe financial distress, you should learn more about the advantages of filing for bankruptcy. For a free consultation, contact the Milwaukee bankruptcy attorneys at the DeLadurantey Law Office, LLC, today at 414-377-0518.