From data released from the Survey of Consumer Finances conducted by the U.S. Federal Reserve, the average amount of debt for most families is around $5,700, with 41% of households carrying some form of debt. The average amount of credit card debt for households for those with revolving balances is around $9,300. Even more consistent in this pattern is the some $10,000 in debt carried by those with a household net worth of zero or negative.
It is of no surprise that individuals with the least amount of assets or liquid cash also carry the most debt. While this correlation may not come as a surprise, the fact is that only a fraction of those people will actively work to resolve their debts. Further, an even smaller percentage of those will successfully eliminate their debts and regain financial freedom.
Cracking Credit Card Debt
One tool that can be beneficial for anyone facing serious debt problems is to file for bankruptcy. One of the biggest advantages bankruptcy can provide is protection from creditors and collections. Many people seek bankruptcy relief to stop harassing debt collection calls, halt eviction or repossessions, stop wage garnishments, and prevent some lawsuits.
Further, a bankruptcy can eliminate credit card debt easily. In a Chapter 7 bankruptcy, debtors may be able to have their credit card debts wiped out in a matter of months. However, not everyone is eligible for a Chapter 7 bankruptcy; in which, a Chapter 13 bankruptcy may provide for credit card debt relief through a series of affordable payments to the court.
If you are experiencing problems paying your debts or are crushed by expensive credit card payments, contact our Sacramento bankruptcy attorney office today at 916-459-2364.