credit card problems

 

Personal Bankruptcy - Should YOU File?


The largest  debt for todays consumer comes from home loans and automobile loans (of course this is known as secured debt). The second highest contributer to consumer debt is unsecured debt. In all actuality the use of  credit cards, by the consumers,  are the major contributor to the unsecured debt problem in the U.S.

Personal Bankruptcy is a question that haunts a great many consumers today. Consumer debt  is now at the highest level that it has ever been in the United States economy and very possibly the world.

It almost seems as if the broad rights granted to financial institutions in recent years is aimed at forcing consumers into bankruptcy.  Recent reports and studies show that many of the major credit card companies have designed their system to actually 'enslave' the consumer into their indefinite future.
One of the most successful parts of this particular strategy is to give the consumer the ability to make minimum payments. When the consumer does this only a very small percentage of the payment goes toward the principal of the loan and the balance is used towards the interest. At this point, the consumer, taking advantage of the minimum payment, has just placed themselves, into the never ending cycle of increasing debt on a monthly basis.

Once the consumer succumbs,  to the minimum payment strategy, they are placing the family one step closer to individual debt insolvency. As this debt increases, from the credit card companies, life goes on and unexpected situations arise. These situations can come from employment loss (by either spouse) or the individual. Then unexpected illness that can quickly amount to thousands of dollars medical bills. In addition the illness may result in the debtor being unable to work for an indeterminate or even permanently being disabled. Indeed just a few of life's unexpected realities.

Once an unexpected emergency occurs and unsecured debt and secure debt becomes completely unmanageable, even those who have faithfully paid their obligations for years may find themselves faced with no option other than bankruptcy.