${site.data.firmName}${SEMFirmNameAlt}
East Orange: 973-677-9000
Paterson: 973-247-9445
Jersey City: 201-659-6226
Toll Free: 888-827-5493
FREE Initial
Consultation Se Habla Espanol
Go to Practice Area Categories

Spiraling credit card debt can be difficult to avoid

One of the most unenviable positions for New Jersey consumers to be in is being caught in a spiral of debt. This type of dilemma is often caused by emergencies such as unanticipated medical needs or job losses that necessitate spending on credit cards. Unfortunately, by the time the alarm bells go off, the debt may be already overwhelming. Depending on the severity of the situation, there may be remedial steps that can be taken to address credit card debt.

The most efficient way to curb credit card spending is by avoiding the use of it. However, there is no danger of accumulating debt if the full amount is paid every month. The interest rates on any balances remaining after the end of the month are typically astronomical. Even if the person manages to avoid spending more, accumulating interest can increase the outstanding balance. Adding any available money to the minimum required amount every month will limit the interest added.

There are two suggested methods of paying off credit card debt. The method that provides quicker results and a sense of achievement is to pay credit cards from the lowest amount to the highest. However, additional interest can be limited by starting with the card that carries the highest interest rate and working toward the one with the lowest interest rate. Working with a strict budget and finding a second job may also help resolve the issue, and a consumer may also try negotiating with lenders.

Those facing overwhelming credit card debt may find themselves being threatened with repossession and/or foreclosure. To find out about the protection offered by the federal Bankruptcy Code, it may be beneficial to consult with an experienced New Jersey bankruptcy attorney. A lawyer can assess the situation and suggest the most appropriate remedy for the client's unique circumstances. Filing for personal bankruptcy results in an automatic stay on collection efforts. Professional guidance may enable the credit card holder to make informed choices to achieve renewed financial stability.

Source: wisebread.com, "5 Ways to Prevent a Debt Spiral", Dan Rafter, Aug. 11, 2016

No Comments

Leave a comment
Comment Information

PRACTICE AREA CATEGORIES

Tell Us About Your Case

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

PROFESSIONAL ASSOCIATIONS

  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Review Us
Goldman & Beslow, LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

FindLaw Network

qr code

EAST ORANGE
OFFICE
7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
Fax: 973-675-5886
E-mail the firm

NEWARK OFFICE 168 Bloomfield Avenue
Newark, NJ 07104
Newark Law Office

Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

JERSEY CITY OFFICE 26 Journal Square,
Suite 603
Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

Back to Top