If you’re one of many Indiana residents who have experienced financial crisis this year, you may also be among those who are hoping to find a solution to eliminate debt before things get too far out of hand. Maybe you have several credit cards that are maxed. If so, you’re definitely not alone in your struggle. In fact, credit card debt is often a key factor in serious financial crises.

Perhaps, you’ve always had a problem with overspending and tend to swipe your credit card when you don’t have cash on hand but want to make a purchase. Then again, you might be the type of person to scrimp and save every penny but still hit a financial roadblock because of unforeseen problems that have taken you by surprise. Either way, it’s good to know that Chapter 7 or Chapter 13 bankruptcy might be a viable solution to your finance problems.

ISSUES THAT OFTEN CAUSE SERIOUS CREDIT CARD DEBT

Analyzing your finances on a regular basis is a good habit. It’s also helpful to understand what exact issues may have caused you to run up debt on your credit card. The better understanding you have, the less likely you’ll encounter similar problems in the future. The following list includes typical issues that often cause serious credit card debt:

• Do you have credit cards that offer reward systems? Such offers may seem like good deals on the surface; however, if you can’t pay off your balance every month, the rewards the company offers you may not even be worth as much as the interest you’re paying toward your debt.
• Credit cards are tools of convenience that allow you to make purchases when you don’t have cash on hand. This places you at great risk for substantial credit card debt because you might buy things on credit without being able to pay for them before your 30-day payment period ends.
• Have you used your credit card to pay medical bills? Many people in Indiana and beyond have racked up serious debt this way.
• Being able to send a minimum-only payment might enable you to keep more cash in your pocket; however, it is also a common cause of credit card debt because interest rates increase the longer your debt remains unpaid.
• Financial emergencies are a part of life. If you use your credit card to resolve them, it is likely that it will cause you serious debt at some point.

There are any number of other issues that might cause you to run up a high balance on a credit card. The good news is that there may be options available to help you resolve the debt and to lay the groundwork for a stronger financial future.

Chapter 13 and Chapter 7 bankruptcies are valuable financial tools that often help people obtain immediate debt relief. You might qualify for one but not the other, so it’s always best to research both options ahead of time to see if one is a good fit for your immediate and long-term financial needs and goals.