Credit cards can be a great financial tool for New York residents who need to make a large purchase or cover the expenses associated with an unexpected emergency. Unfortunately, however, credit card debt can quickly snowball, creating significant financial hardships for consumers. Many people struggling with high levels of credit card debt face creditor harassment, late fees and interest rates that can make paying off a balance seem impossible. In some cases, extreme levels of credit card debt can lead to filing for bankruptcy.
David Cassidy, the former star of the Partridge Family television show, recently filed for bankruptcy. The decision to file apparently resulted from credit card debt totaling over $38,000, as well as a mortgage of nearly $300,000 on his home. The credit card debt is split between only two cards: American Express and Citi. Although he reportedly took out a personal loan in an attempt to get caught up with his bills, he was unable to get ahead. As a result, he filed for bankruptcy, believing it to be necessary to regain control of his finances.
Credit card debt can be one of the most difficult financial problems to conquer because the system set up by credit card companies is designed to give people access to more money than they are reasonably capable of repaying. In addition, the system often burdens consumers with high interest rates and fees. For these reasons, many people struggling with credit card debt feel hopeless, as if they will never be able to escape the difficult situation.
Fortunately, consumers have more options–even when it comes to credit card debt–than they realize. In many cases, it may be possible to negotiate with creditors or work out some kind of debt settlement arrangement. Bankruptcy is also a powerful option that can help consumers eliminate large amounts of debt in crippling situations. Because of the range of possibilities, many consumers have the option of starting with some simpler kinds of potential solutions to see if those will be successful before moving forward and making the decision to file for bankruptcy. Getting some solid advice from an experienced attorney who specializes in bankruptcy and financial matters can help consumers become informed about their options and empowered to move forward.
Source: Inquisitr, “David Cassidy Files For Bankruptcy, Owes $39K In Credit Card Debt,” Feb. 12, 2015