Debt has become a regular part of life for many Americans. It is for this reason lawmakers have begun to push for legislation to help people manage their finances more easily. Recently in Illinois, one senator called for a new law that would wipe out people’s student loan debt if they file for bankruptcy.
Under current law, bankruptcy can wipe out someone’s credit card debt but not their student loans. It is vital for people to be aware of when their credit card debt has grown out of control so that they can begin with bankruptcy proceedings sooner rather than later. These are some of the signs you will see with your credit card accounts that it is time to do something proactive.
You can only afford to make the minimum payment
Ideally, people should pay off their credit card bills every month. If you cannot manage that, then you should at least pay off as much as you can. In the event there is only enough in your budget to make the bare minimum payment, then you need to do something. Making the minimum payment will only cause more interest to accumulate, and you will end up spending more in the long run.
You have to seek out supplementary income
You may discover your regular income is not enough to even make the minimum payment. Working overtime or getting a second job may seem like a viable solution, but it actually means things have not worked out in your favor. Working 60, 70 or 80 hours a week may not be a viable solution, especially if you have children, so you need to seek out an alternative.
You cannot stop using your credit cards
There may not be enough money in your checking account to use a debit card. If you consistently have to use your credit card to purchase essentials, such as food and utilities, then you are in a hole you will never get out of.