Bankruptcy And Credit Cards: Is It The Right Time For Filing Bankruptcy?

You need to keep in mind several things in order to decide whether it is the right time for filing bankruptcy. Credit cards have been a very convenient financial tool, but if you are using it unwisely, it may put you into much deeper financial trouble. Following are some of the warning signs associated with credit cards that may put you on the path of bankruptcy. Therefore, if you want to avoid bankruptcy, you will have to avoid getting into the following circumstances. You may contact an Unsecured Credit Debt Lawyer to assess your credit card situation and know your options.

Too Much Outstanding Balances Credit Cards

The number of credit cards you own and the overall amount of debt that you owe plays an important role in assessing your financial situation. Credit cards are also known as plastic money and they are a very convenient way of making payments, as you do not need to carry huge amount of cash with you all the time. However, the same convenience may also put you into deep financial trouble if you are not wise in using your credit cards. It is important for you to understand that credit cards cannot be treated as a funding source. They are in fact, the most expensive way of borrowing money. If you have two or more credit cards with too much outstanding balance to be paid off using the means and assets that you have, it is a certain warning sign for you.

Making Only Minimum Payments On Your Credit Cards

Some people try to keep the debts at a distance by only making the minimum payments, which is certainly not a very wise method to pay off the credit card debt. These days, the minimum payment does not even cover the amount of interest per month. Therefore, if you are making only minimum payments, you are getting into the much deeper financial trouble. This is again a warning sign for filing bankruptcy.

Paying One Credit Card Bill With Another Credit Card

Some people also try to pay off one credit card bill with another credit card. This can again put you on the harsh and unpleasant path of bankruptcy. If you are serious about keeping your finances on track and in an organized way, you must not make such mistakes. These mistakes are fatal and may eventually end up with you filing bankruptcy.

The list is much longer than can be covered in just one article. Credit cards are supposed to be used a convenient mode of payment and not as a tool to borrow money. If you are using it as a way to borrow money, it might be too expensive for you to afford. filing bankruptcy is something you would certainly not like to do. Therefore, you had better be wise.