Each January, thousands of people open their credit card statements with trepidation. Some don’t even open them for fear of the bad news inside.
It is easy to spend too much in December. People expect presents, colleagues and friends expect you to join them on nights out, and your family expects you to feed them something special. Yet, the financial hangover can last far longer than the one that results from the alcohol you bought.
Christmas may be enough to push your debt over the edge
The festive season is often the final nail in the coffin when it comes to debt. If you were already struggling to meet your debts in December, it might be impossible come January. If that is the case, you may want to use the new year as a motive to do something about it.
Credit card companies like it when you owe them money. Or rather, they like you owing them money that you think you can pay. Therefore, you may receive a host of offers in the next few weeks, offering you a higher credit limit, payment breaks or new cards with low-interest balance transfers. These might get you a temporary reprieve, yet they do not tackle the root of the problem – that you owe too much money.
Filing for bankruptcy may be your only option for a clean start. Even if you cannot use it to clear debts such as student loans, by getting rid of your credit card debt and other eligible debts, you put yourself in a situation to pay the debts you cannot erase.
Bankruptcy can sound like a scary prospect, yet continuing to live with debt you cannot meet is hardly enticing. Finding out more can help you make the right decisions.