Credit card debt may feel like the Ghost of Christmas Past. The purchases made on one’s credit card during the latest holiday season and at other times of the year might continue to haunt the individual for a long time. People in Pennsylvania might not know how to obtain debt relief, but they may find hope in the legal avenue of bankruptcy protection.
Many people who are living from one paycheck to the next and struggling to keep up with credit card bills have multiple options. The trick is determining which option is best in one’s unique situation. For example, an individual can tackle debt through credit counseling, which involves allowing a counselor to review one’s debts, expenses and income. Then, the counselor may produce an action plan and budget that will help the person to overcome his or her debt.
People may also consider debt consolidation, which allows a person to get one big loan for paying off smaller debts. This larger loan should have an interest rate that is lower than those of the small debts. Credit counselors also can work with one’s creditors to help a person to better manage his or her debt by reducing payments and interest rates. This process helps to stop harassing collection calls, in addition to allowing the person to pay off debt more quickly.
Some people are so deep in debt that none of these options will prove viable. Bankruptcy, however, will allow the person to discharge debts. Spousal support and student loans typically cannot be discharged through bankruptcy, but credit card debt can. Bankruptcy can be a helpful way to quickly experience debt relief in Pennsylvania.
Source: The Rock River Times, "Five debt solutions for consumers struggling with credit card payments", , May 8, 2014