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Declaring Chapter 7 in New York due to credit card debts

New Yorkers know how credit cards benefit their lives. A single swipe of the plastic allows cardholders to buy what they want, whenever they want. While credit cards are a convenient way to buy goods and services instead of having to use cash, people often make mistakes when using their credit cards, which can result in a great deal of debt. For Long Islanders who end up saddled with overwhelming debt, credit cards are dangerous things that may bring long-term consequences, such as creditor harassment and financial challenges.

One mistake that many cardholders make is paying late. Paying the credit card bills after the deadline may result in late fees and higher interest rates on future purchases. Paying the minimum and charging beyond the credit card limit may increase the debt and ruin a person’s credit score.

When taking out credit card cash advances, the person should remember that the interest rates that may apply may be 10-15 percent or more higher than the interest on purchases. Credit card deals with zero percent introductory offers may bring risk as well. Those tempting deals are probably limited and when the deal ends, the real, higher rate will still apply. The same goes for store credit cards.

Before they realize it, cardholders may be facing mounting credit card debts that can hurt not only their financial well-being but also their lives. But New Yorkers with credit card debt may find a way out of the downward spiral through Chapter 7 bankruptcy.

Chapter 7 bankruptcy, or liquidation, may present alternatives to eliminate unsecured debt such as credit card debts. The liquidation process will only take a few months, during which time an automatic stay will be in place, protecting the filer from attempts to collect on the debt. Student loans and child support may not be discharged under Chapter 7, but consumer and medical debts can be.

A legal professional can help Long Islanders review their legal rights and options. For many struggling with overwhelming debt, Chapter 7 bankruptcy can provide a fresh financial start.

Source:, “Top Credit Card Mistakes” Adam Levin, July28, 2013

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