Getting Rid of Credit Card Debt is a Smart Money Move
In 2008 we the taxpayers of the United States bailed out the huge banks and stockbrokers with close to a trillion dollars in emergency funds. These financial institutions were labeled too big to fail and dire warnings were given as to the fall of our entire financial system if the bailout were not approved immediately. Unfortunately, our representatives gave all of our hard earned money out without putting in enough safeguards and consumer protection or even any guidelines which the banks would have to follow in order to get the money and keep getting our bailout money. The consequences have been profound and the taxpayers are paying the ultimate price for this by actually paying more and more money to credit card companies in the form of higher interest rates, fees, and penalties.
How does this work, you ask? Simply put, the government had a chance to impose conditions when they gave all of the bailout money to the big banks like Chase, Citibank, and Bank of America. Since there were virtually no conditions, the banks continued their free spending habits and giving their corporate executives huge bonuses, all at the expense of us, the American taxpayers. Some other weak legislation was passed earlier this year intended to clamp down on credit card companies by limiting the amount of late fees and interest rate augmentations that they could impose on their credit holders. Unfortunately, these weak laws were easily subverted by the army of attorneys that the credit card companies employ and loopholes were found. The end result is that credit card holders are actually paying more in fees and higher interest rates than ever before.
The conclusion that many debtors now face is that they must get rid of credit card debt by any and all means possible. For many this will simply mean paying off their outstanding balances and closing their accounts and cutting their credit cards in two. For others who have accumulated too much debt, it may mean going to credit repair agencies who will negotiate settlements for them and help them get rid of credit card debt in that manner. For others it will mean either just walking away from the bad debt or filing for bankruptcy.
If you choose to get rid of credit card debt by walking away, you will be bombarded with calls from them, day and night and they will harass you to death until you give up. Eventually they will sue you and win in court and place a lien on your future earnings with a judgment. By getting rid of credit card debt using the bankruptcy method you will still need to pay some of the debt off, but a lot less. This will ruin your credit for a while but eventually you will be able to build it back up. Bankruptcy costs are usually around $500 to $2000, depending on the attorney and how complicated your case is and whether or not you own any real property such as a house or condo.