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Addressing credit card debt: sometimes bankruptcy is the most effective way

Credit card debt, unlike some other forms of debt, can easily and quickly lead to a downward spiral, financially speaking. High interest rates and significant late fees are part of the reason for this. The fact that so many Americans struggle with credit card debt is a testament to this. According to a recent article by Consumer Reports, credit card debt continues to be an issue for many Americans, with national credit card debt reaching $912 billion in the second quarter of the year, and projected to exceed $1 trillion by the end of the year.

Addressing credit card debt is not necessarily an easy matter, though there are certainly ways to work toward paying it down. This includes the obvious solutions, such as decreasing spending, cutting expenses, spending savings rather than credit, and increasing income, but also less obvious solutions, such as making use of making use of good credit offers and refinancing with a low-interest personal loan. 

For those who have done all they can in these areas to address their credit card debt, it may be beneficial to look into credit counseling and the possibility of getting on a debt management plan. Debtors who have done everything they can to pay down their debt should also consider the possibility of bankruptcy.

While a bankruptcy filing is never the first choice to address burdensome credit card debt, there are some situations where it is the most sensible and effective solution. Credit card debt, because it is unsecured, nonpriority debt, may be discharged in bankruptcy, but it is important for debtors seeking bankruptcy protection to complete all the requirements of the bankruptcy process to be eligible for discharge. Working with an experienced bankruptcy law attorney is important to ensure that such debtors are able to successfully navigate the process. 

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