Some people think they are doing OK by only paying the minimum credit card payment each month. While it’s true that this will keep a person current each month, it also means that a debtor will pay the maximum amount of interest possible. If they are able, a debtor should pay as much as possible towards a credit card in order to minimize these interest charges. As a bankruptcy lawyer, it is easy for a person who is only making minimum payments on their credit card to fall into serious debt trouble.
For instance, if a person has a $5,000 credit card balance, their minimum payment each month is 1% of their balance plus interest. Their minimum payment in the first month is $125. Assuming they only made the minimum payment each month, it would take 273 months to pay off their card. In total, they would pay $6,923 in interest on top of their balance.
This shows just how easy it can be to fall into debt problems. A person might think they are doing alright without realizing just how much it is costing them. Suddenly, an unexpected illness or job loss happens and they have no extra money. When this happens, a bankruptcy lawyer can help get your debt problems under control and help with get your life back.
At Westbrook Law Group, we have helped many clients discharge debt in Chapter 7 or reorganize debt under Chapter 13. We will find the right solution for your debt problems and can help keep important assets while getting your debt under control. To learn more about how we can help with your debt issues, call (636) 486-1122 or fill out the online case evaluation.