Credit card debt is something that hits some people harder than others. People get credit cards for many different reasons. They may want to establish credit worthiness. They may also want to add a cushion to their income so that they are prepared for a financial emergency if one arises. Others may need to make a major purchase, and not have the cash on hand.
You may already know that, once you file for bankruptcy -- whether it's Chapter 7, Chapter 13 or Chapter 11 -- an automatic stay is placed on creditor actions while you address your debt problems. That kind of protection is a major benefit provided under bankruptcy law.
If your credit card companies demanded full repayment of your current debt load tomorrow, would you have enough money in your savings to cover the balance? According to a new Bankrate.com survey, the number of Americans who could eliminate their credit card debt tomorrow using only funds from their savings accounts currently stands at 51 percent. This means that nearly half of all Americans have more credit card debt alone than savings.
According to dailyfinance.com, more than half of all American parents were planning to take on at least some holiday debt in order to buy presents for their children, and its likely you did, too. Consumer credit card debt in the U.S. totals almost $800 billion -- second only to student loans in the total held by Americans.