Most American adults have at least one credit card. If you count yourself among them, you may find your balance creeping up each month despite your good intentions. You are not alone in feeling like your credit card debt is spiraling out of control.
Many people accrue large amounts of credit card debt for similar reasons.
Why credit card debt compounds
You, like many others, may find it easier to part with money when you swipe a plastic card, rather than count out cash with your hand. Having a credit card also enables you to spend more than you make, and many people struggle with knowing where to draw the line.
Credit card debt can compound quickly if you find yourself facing sudden medical bills or other emergency expenses you have no other way to finance. You may find that it becomes increasingly difficult to dig out of credit card debt if you have one with high interest rates or one that you make only the minimum payment on each month.
Your options when credit card debt compounds
When your credit card debt becomes too much to manage, you may try to negotiate with your creditors. You might also give some thought to working with a debt settlement agency, but there are some very real risks that come with doing so. Many people facing unsurmountable piles of debt decide to seek relief through filing for bankruptcy.
Consumer bankruptcies fall into two categories. Whether a Chapter 7 or Chapter 13 filing might be better for you depends on the specifics of your situation.