Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709
${site.data.firmName}${SEMFirmNameAlt}

Is credit card debt a problem?

Credit card debt is one of the more dangerous types of debt. Unlike a mortgage, where you know you are taking out a loan with a long, long repayment period, often 30 years, when you take out a credit card, it may cost you nothing. And if you don't use it, it still costs you nothing.

And when you do use it, the debt may seem minor, unlike the massive amounts residing in a mortgage. You probably can pay off the balance in its entirety. Perhaps you in fact practice this behavior, and avoid interest charges. 

What if you take a vacation, and charge a significant amount, and then plan to pay off that debt in equal, monthly installments. You plan to have it paid off in three- or six-months. But what happens in you are injured in an accident that isn't covered by your car insurance or workers' compensation at work?

Worse, maybe the injury leaves you out of work for a few months. With no income, you can't pay your now growing credit card debt or your medical bills. That vacation that seemed so reasonable and affordable, now seems extravagant.

While extravagant spending may cause some bankruptcies, in reality, it is much more prosaic events, like losing your job or an injury that causes unexpected medical bills that can be the tipping point for many people who end up in bankruptcy court filing a Chapter 7 or a Chapter 13.

Limiting your use of credit can help prevent a financial crisis or bankruptcy, but it is no guarantee that you will never need the services of a bankruptcy attorney.

Source: usatoday.com, "Vacations tend to come with baggage: Credit card debt," Anita Balakrishnan, June 29, 2015

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.