How to Handle Credit Cards and Avoid Bankruptcy in Arizona
Many people in Arizona are facing difficult financial times. Individuals in the Phoenix, Mesa, Glendale, and Tucson communities, are strapped with the burden of too much credit card debt. It takes diligence and persistence to stay out of credit card debt. It is a lot easier to stay out of debt in the first place vs. trying to dig yourself out of major credit card debt once you are there.
Whether you want to eliminate your current debt or keep yourself out of additional debt, it’s critically important to know your current financial situation. Making a list of all of your weekly and monthly expenses will be a good start to analyzing your current financial status. A list of your expenses is key. With a list of expenses, it will be easy for you to have accurate knowledge of your cash flow. If you have little or no idea where your money goes each month, you can hardly stay out of debt.
A good idea to make your monthly expenses list more accurate would be to track all that you spend for an entire month. Make it a personal rule to track your spending each month. If you don’t have any money management software, you may use the excel worksheet for making calculations. If you choose not to keep track on a computer, a simple list on paper will suffice, just make sure to include everything that you spend during the month.
Another handy tool for realizing your monthly expenses is available through special financial tools offered by credit card companies. For this, visit the official site of your card issue. So, you may take advantage of helpful financial tools available online. The most important thing is to make sure to obtain an accurate monthly expense report. Once you know where every one of your hard earned dollars is going each month, you will be able to curtail the unnecessary spending and focus additional monies on your credit card debt.
Many individuals in Arizona carry more than one credit card. Not all credit cards are created equal, it is recommended to start from arranging your current credit cards by interest rate, from the highest-rate card on the top to the lowest-rate card on the bottom. By doing so, you can see clearly the most “expensive” cards and the cards with more beneficial features, such low interest rates or no annual fee. It is recommended to try and not use credit cards at all, however, if you must, use the credit cards that are the lowest interest credit cards and the ones that benefit you the most. DO NOT obtain any additional credit cards! Work at limiting the credit cards that you have.
One of the worst things that individuals in Tucson, Glendale, Mesa, and Phoenix can do is to carry a large balance on a credit card, especially the “unfriendly” credit cards with high interest rates. If you are financially forced to carrying a balance on a credit card, it is highly recommended to pay it off in full each month in order to avoid high interest, penalties, and serious financial problems. However, if you can’t pay off the entire balance for some reason, you should try to pay more than the required minimum payment. In case you have been hit by interest rate hikes, you may also consider balance transfer credit card offers that allow you to pay down your balance on more favorable terms.
Credit card debt is one of the biggest reasons why most people think about filing for Chapter 7 bankruptcy. Declaring bankruptcy in most cases wipes out all of your unsecured debt like credit card debt. It’s easy to get into debt especially when the economy is bad. Credit cards offer a temporary relief to the mounting bills, but it is only putting off the inevitable.
According to a Consumer Reports survey from 2009, approximately two-thirds of Americans own at least one credit card. 33% of cardholders carry balances of up to $10,000. 13% carry balances over $10,000. If you are one of many debtors in the Phoenix, Tucson, Glendale, or Mesa area who are dealing with credit card debt, The My AZ Lawyers, PLLC may be able to help you with your excessive credit card debt and financial situation. Call today for a free consultation and debt evaluation. Know your options! (480) 833-8000 or (520) 306-8729.
If you are like many people in Arizona and have fallen behind on your monthly payments or are looking for a way to eliminate your credit card debt because you are having trouble making ends meet, a Phoenix debt relief lawyer at our firm can talk to you about your particular options. Filing for bankruptcy, for example, will place an automatic stay (temporary hold) on all debt collection efforts against you. You may be able to eliminate all of your credit card debt through bankruptcy. This is a big decision to make, however, so we recommend that you only take action once you have all the information about bankruptcy in Arizona. You can get your questions answered and get additional information about debt relief at a free consultation and debt evaluation with one of our experienced Phoenix, Glendale, Mesa, and Tucson bankruptcy attorneys.