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When holiday debt can lead to bankruptcy

On Behalf of | Nov 14, 2018 | Chapter 7 And Chapter 13 Bankruptcy |

It is easy to let the consumerism of the holidays reel you into its trap. Also, it feels good to give loved ones expensive gifts. But while making big purchases during the holiday season may make sense at the time, it can leave you in debt once the new year arrives. According to a recent survey, Americans accumulated an average of around $1,000 over the 2017 holiday period. This amount of debt alone can take months to years to pay off, especially for those who can only make minimum payments with high-interest rates.

If you are struggling with your finances because of holiday spending, you may not know where to turn for help. The burden may be even worse if you had existing financial struggles before the holidays. Here are some reasons you may want to consider filing for bankruptcy to wipe out your credit card debt.

You cannot afford to pay back your debt

The first thing to think about when contemplating bankruptcy is whether you can reasonably pay off the debt. If you have enough income to afford payments, you may not be eligible for bankruptcy. But if your debt is too overwhelming, declaring bankruptcy may be the best decision to make.

Your creditors are harassing you

You may start getting phone calls from your credit card issuer or debt collection agency after the holidays if you cannot make payments. These calls may get more persistent and intense as you get deeper into debt. Bankruptcy can stop this type of harassment from occurring.

You face wage garnishment

Another sign that bankruptcy may be necessary is if your wages are being garnished. Your credit card company may sue you and begin to take money directly from your wages to satisfy the debt. If you file for bankruptcy, wage garnishment will cease.

You do not need to let the holiday debt bring you down. Consider bankruptcy so you can start fresh financially in the New Year.

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