Having a credit card makes it very easy to buy outside of your spending range. Unfortunately, credit cards also make it quite easy for people to slip deep into debt before they realize what has happened. As a result, many cannot pay off their bills on time. Some wait until they have the money to send in a check, while others may skip the payment altogether. These practices can have devastating financial effects on both your credit rating and your purchasing power.
Every time you miss a payment or turn the check in late, you could see a hike in your interest rates. Many credit card companies are unforgiving when it comes to late payments. If you make a mistake just once, they could use this error as justification for increasing your interest by extreme amounts.
Making late payments or missing bills altogether also puts red marks on your credit score. With some companies, even one strike against you could be used as validation for hiking your rates or denying you their services. Therefore, missing just one payment can affect you in more ways than you may have suspected.
When you are in a situation where paying off high credit card bills is difficult, making a late payment could force your financial situation into a seemingly irresolvable state. Fortunately, there is a way for you to fix your finances. By filing for bankruptcy, you can clear up your debts and restart your finances from the beginning.
If you have fallen behind in your debt repayments and are considering filing for bankruptcy, then the Birmingham bankruptcy attorneys at [firm-name] can help. To speak with us about your situation and available options, contact our offices today at [phone-number].