When asked, “What is the primary cause of consumer bankruptcy in Arizona?” our lawyers will tell you that it is overdue credit card balances.
How Do Debt Problems Begin?
Sometimes the problems start when the consumer simply has too many credit cards and cannot track expenditures, as when both spouses are making purchases without either knowing what the other is buying. Problems with overdue credit card balances start innocently enough when consumers miss a payment or two on one credit card. They are enticed by credit card companies to further jeopardize their financial stability. Credit card companies encourage consumers to pay a fee to transfer balances from one credit card to another, with a resulting rate increase. The credit card companies also promote cash advances so the consumer can pay some other obligation (also for a fee with a rate increase). This is the proverbial borrowing from Peter to pay Paul – it is not a sustainable financial plan. Before long, the consumers’ minimum credit card payments become unmanageable and nothing goes toward lowering the principal debt – interest rates skyrocket and penalties get added.
Lawyers Know How Credit Card Companies Operate
Credit card companies are notorious for setting their customers’ credit limits unreasonably high given the consumers’ actual income and credit needs. Interest rates are set too high as well, with excessive over-limit fees. This sets the stage for the perfect financial storm if the consumer has any problem making payments. Even a single late payment can trigger a rate readjustment at a much higher percentage. Although the credit card company is required to notify its customer of any rate changes, there is little the consumer can do to negotiate with the creditor card bank over increases.
Our Lawyers Discuss Unsecured Credit Card Claims
When you meet with our Phoenix Arizona bankruptcy lawyers at the Pew Law Center, you will learn precisely how your credit card debts will be affected by bankruptcy. Lawrence‘D’ Pew wants you to understand the important legal distinctions between unsecured credit card debts and other secured obligations, such as home equity loans. In a Chapter 7 straight liquidation bankruptcy and Chapter 13 individual debt adjustment bankruptcy, your unsecured credit card debts will be discharged!
Contact the Pew Law Center, PLLC
Our lawyers have helped consumers just like you eliminate unsecured credit card debt in bankruptcy. Through Chapter 7, Chapter 11, and Chapter 13 bankruptcy, Lawrence ‘D’ Pew has assisted more than 2,000 area residents in eliminating over $100 Million in debt.
To learn how filing for bankruptcy through the Pew Law Center, PLLC, can solve your debt problems once and for all, call 480-745-1770 today. We will schedule your FREE VIP Bankruptcy Consultation with an experienced bankruptcy attorney. Need more answers? You can also chat with us online for free, 24-7. Don’t keep your life on hold, give us a call today so we can get to work helping you and your family.