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Credit Card Urban Myth Could Cause You Financial Pain

Posted By admin || 29-Jul-2009

Many credit card consumers are under the mistaken belief that as long as they pay "something" on their credit card debt every month (even if it's lower than the minimum required payment), their creditor cannot take further action against them. That's a MYTH. The truth is that each credit card has a minimum payment requirement that credit card consumers are required to pay in order to remain current on their account. If credit card consumers fail to pay at least the minimum payment requirement, their account will access late fees and may be sent to collections.

For example, if a credit card consumer is paying $25 a month as opposed to a $53 minimum payment required by the creditor, the debtor could incur late fees as high as $39 per month. Also, the credit card company may report the account as not paid for 30, 60 or 90 days, depending on how long you have failed to make the minimum payment. After 120 days of "non-payment" the credit card account could be charged-off and sent to a collections agency that will then begin assessing more fees.

If you're finding that you are unable to make the minimum payments on your credit cards and/or are struggling with other bills, you may want to consider your bankruptcy options. Even if you're unemployed, bankruptcy can offer viable options for discharging most debts and giving yourself a second chance financially. To find out more about bankruptcy, contact a Dallas-Fort Worth bankruptcy attorney today.

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