It depends on how you look at it. (How's that for an attorney response for you?)

Credit Card companies charge more percentage than any other creditor out there. No home loan is going to have over 20% interest.  This is because, unlike home loans, car loans, and the like, credit card companies issue what is called “Unsecured Debt.”  The only way they can feel secure about there debt is if they charge you tons of interest – it is there way of making sure that you don’t leave them hanging.  The interest is how they secure their debt. 

And generally, these interest rates only come about because the consumer was late on a payment.  That shows that the interest rate not only acts as a way to secure their debts, but it also their built-in Bankruptcy Plan.  Once a consumer is late on a debt, the creditor is figuring that bankruptcy is right around the corner.  So, to try and get back as much as it can before that happens, they jack the interest rates up in an attempt to recover at least some of their money.

Usually, as a result, the payments become too hard to handle.  Even if you make a payment, your bill comes back showing that you owe more money than before the payment was made.  By cutting off your chances of repaying them, they have forced you into a difficult situation – either pay them three times the amount of the depreciating value, or file for bankruptcy and let them handle the cost.

My money is on the credit card companies to survive.  Bankruptcy in America has been around since the
Constitution (look for "bankruptcies"), and American Express, Visa, Discover, and all the other credit card companies are still around.  THEY took the risk to lend you money. The economy tanked, you lost your job, or whatever, and now you can’t make any more payments to them.  But guess what – they would love to throw you under the bus and let you sink while you try to pay them off; so, why not do the same to them?  If it comes down to you keeping your house, sanity, and paychecks, or them keeping their billion dollar bonuses, which would YOU rather choose?

There is nothing wrong with bankruptcy.  Is it built into our system of credit, it is a part of it, and it is better than loosing all that you have worked hard for.  Come on in, and we can discuss how to better help you today.



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Chapter 7 Blog

This is a collection of articles for your consideration when deciding whether bankruptcy is right for you.

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March 2010

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