In 2009, Congress passed the Credit Card Accountability Responsibility and Disclosure Act, giving rise to the convenient acronym, "CARD Act." The Act is intended to protect consumers from deceptive and abusive practices by credit card issuers. Despite the widespread use of credit cards by residents of Rockland County, very few people are aware of the act or are knowledgeable about its key provisions.
One of the prime motivations for filing a bankruptcy petition is accumulated credit card debt. Many residents of Rockland County who have let their use of credit cards get out of control often look to bankruptcy for relief, but very few understand what happens to credit card debt in a bankruptcy proceeding. The answer to this question depends upon the type of bankruptcy proceeding that is chosen and upon the debtor's ability to continue to pay off those credit card balances.
Virtually every inhabitant of Rockland County has received at least one offer of a retail credit card - that is, a credit card offered by a retailer instead of a bank. While the cards offer certain advantages, they now come with very high interest rates, some higher than 30 percent per annum. People who accept these offers often find themselves faced with a mountain of credit card debt after a few years of use.
As a previous post on this blog discussed, credit card companies offer all kinds of incentives to get New Yorkers to sign up for and then use their credit cards. In addition to "zero interest" purchases, companies also offer cash back incentives, travel rewards and other goodies that are in fact wonderful deals so long as people pay off the balances.
One of the reasons families who live in Rockland County, New York, wind up having to file bankruptcy is credit card debt. Although a family may be able to swing regular payments, at least on the interest, when everything is going well, big credit card balances combined with unemployment or a medical problem can cause a family's finances to unravel quickly.
The amount of debt United States citizens owe on their credit cards has crossed the $1 trillion threshold, meaning what some call a modern "debt trap" is showing no sign of ending and may, in fact, be getting worse. These numbers mean that those who do not pay their credit cards off in full each month, are carrying around balances of $9,600.
Some debts are taken on willingly by those who must bear them. For example, some New Yorkers are comfortable acquiring loans for buying homes or cars, while others use financing to pay for their educational pursuits. Debts incurred from mortgages, vehicles, and student loans are often anticipated, and the individuals who hold them are generally prepared to manage their repayments.
After the holidays, many people receive credit card statements that are higher than usual. After spending money on gifts, travel, and a host of other costs, New Yorkers may wind up with balances that exceed their capacities to pay in full. It may be tempting to ignore a high credit card statement for as long as possible, but advisers in the field of credit counseling warn that putting of payments can be detrimental to the card holder.
Every year Garnerville residents have a chance to start fresh as the new year rolls around on the calendar. Well, that chance just happened and along with plans to get healthy, reconnect with old friends and get ahead in their careers, many individuals make plans to become more financially savvy. One way that New Yorkers can take control of their finances is by getting their credit card debt under control, but doing so can be a lot more challenging that it may at first appear.
Shopping for loved ones during the holidays can be a special experience for some New Yorkers. In fact, giving to others can be one of the most rewarding things a person can do all year. Unfortunately, however, in the excitement of making purchases to bestow upon others, a person can accumulate significant and sometimes overwhelming amounts of credit card debt.