With the holiday season fully in swing, many Colorado residents are off to the stores to buy presents for family and friends. While the gifts can be a nice token of appreciation and love, they can also leave a serious dent on a person's finances.
It seems like more and more individuals are increasingly making their holiday purchases on credit cards, especially nowadays when the economy is still uncertain. In turn, these individuals tend to face mounting credit card debt.
Once credit card debt accrues, it can make for a dangerous debt spiral. Individuals who are unable to make their minimum payments see their debt carried over month-to-month. Most times, this means the person no longer has the benefit of a grace period given by the credit card company, which is the time the person has before interest accrues on the bill. What's more, continuing debt means that newer purchases will be charged interest immediately, and after some time, individuals will be paying interest on the interest itself.
Ultimately, after individuals find themselves in this uncontrollable spiral of debt, they may need to seek other options for debt relief. One of the more effective options is to file for bankruptcy, which enables the person to receive a discharge of their unsecured debt.
Among the unsecured debt that is typically discharged in bankruptcy is credit card debt. Accordingly, individuals can regain control of their finances and stop the debt spiral that they may otherwise be unable to break free from. Therefore, if Colorado residents find themselves deep in credit card debt during and after the holidays, they can meet with a bankruptcy attorney to discuss their options.
Source: NY Daily News, "Money pros: avoid the holiday debt hangover by getting a handle on your finances before hitting the stores," Gail Cunningham, Dec. 6, 2013