It is officially spring in New York and readers of this bankruptcy and debt reduction law blog may finally now be paying off the last of the holiday expenditures that carried over as balances on their credit cards. However, during this time of year it is not uncommon for individuals to begin contemplating other big expenses, such as summer vacations and improvements to their yards and homes. As one can see, it does not really matter what month of the year it is - costs can always be incurred and can reignite credit card debt problems for consumers.
Though overspending is the behavior that gets many credit card holders into trouble, there are some credit card terms that can contribute to individuals' inabilities to pay down their credit-based balances. First, credit cards with variable interest rates can contribute to debt problems for consumers. These types of rates change, usually by increasing, at a set point in time and can cause a person's balance to increase based on an increase in his card's charged rate.
Additionally, high penalties and fees for delinquent payments can also contribute to an individual's credit card debt. Though an individual may not initially have a large balance on his card, he may see that amount grow significantly if he fails to make timely payments toward his outstanding balance. An individual should be able to review the fee and penalty terms for a card before he ever signs up for the charge account.
Finally, credit card holders should always be aware of the legal rights they possess when it comes to challenging a credit card charge or negotiating the reduction in a credit card balance. Many credit cards stipulate in their terms and conditions how such negotiations may proceed and consumers have the power to reject cards that have unappealing terms related to legal remedies.
Consumer behavior generally creates debt problems, particularly when consumers fail to keep their credit spending in line with their abilities to pay off their charges. However, there are some credit card terms that can make a consumer's small pending card-based debt into a much bigger financial burden. To learn more about reducing credit card debt, readers may contact bankruptcy and debt reduction attorneys in their communities.