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Christopher Todd Morrison, P.C.
Affordable Bankruptcy
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May 2018 Archives

Store credit card delinquencies on the rise

An increasing number of people in Houston and across the country are finding it difficult to pay the bills for their store-branded credit cards. Delinquencies of 60 days or greater on the payments for these bills have gone up to 4.65 percent as of May 2018, an increase from 4.08 percent in March 2017. This is the highest rate of default that Equifax, the credit bureau, has seen for this type of card since 2011. The agency warned that it could be a sign of growing trouble for household debts across the board.

The consequences of filing for bankruptcy

Debtors in Texas and throughout the nation could use bankruptcy as a way to obtain financial relief. However, it should generally be used as a final option when there are no other ways to repay balances owed to creditors. It is important to note that bankruptcy does not eliminate every type of debt that a person could have. For instance, it generally won't take care of taxes owed or back child support payments.

Filing a Chapter 7 bankruptcy in Texas

Texas residents who wish to escape overwhelming debt may be unfamiliar with the differences between a Chapter 7 and a Chapter 13 bankruptcy. Those who file Chapter 13 bankruptcies make payments for three or five years to pay down all or part of their debts, but debtors who file successful Chapter 7 petitions make no further restitution and see some or all of their debts discharged. This can make Chapter 7 bankruptcies seem far more attractive, but qualifying for a Chapter 7 petition can be difficult.

Utilization, revolving credit and credit card debt

According to an infographic from Supermoney that draws on a report from the credit agency Experian, the average credit card debt of people in Texas falls somewhere in the middle of the national average. People in Iowa carry the lowest balances with an average of $5,155. Alaskans have the highest at $8,515. In Texas, the average is $6,902.

3 approaches to eliminating credit card debt

Unemployment, medical emergencies or unexpected vehicle repairs can send people in Texas reaching for their credit cards. Although numerous reasons can cause someone to fall into debt, the balances need to be paid at some point. Debtors have several approaches to choose from when confronting credit card balances and high interest rates.