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Many still struggle though nation's credit card debt drops

Consumers here in Massachusetts remain cautious about the sluggish economy. This is evidenced, say experts, by a continued decline in credit card use. American Credit card debt dropped in July for the second month in a row, showing consumers are hesitant to charge goods and services to their credit cards. Economists are concerned this may lead to weak consumer spending, but many banks are trying to offer new incentives to get people to use their cards more often.

Though overall credit card debt is dropping, many Americans are still struggling to make minimum payments on their own cards. High interest rates coupled with unemployment, an unexpected medical condition, or a drop in income can lead to a troubling financial situation. When one falls behind on credit card bills, creditor harassment can leave her feeling afraid, stressed, depressed, and feeling hopeless. Fortunately, an attorney may be able to stop the harassment and help the struggling individual find debt relief.

An attorney can discuss the options available to a person overwhelmed by credit card debt. One of these options is to file for bankruptcy. Filing for bankruptcy may allow the individual to eliminate debt and attain the fresh financial start she needs. Under a Chapter 7 bankruptcy, the debtor's assets will be auctioned off. Money made from the auction will then be used to pay creditors in order of priority, and any remaining debt may be forgiven. In addition, certain exemptions exist that the individual may be able to take advantage of to keep some assets.

The mere idea of bankruptcy terrifies some. It should not. Bankruptcy is a real way to get a new start. A bankruptcy attorney can clarify the process while bringing a sense of comfort about the steps that must be followed. When it seems as if no one is on her side, a bankruptcy attorney can be the helping hand she needs to get on the road to a new beginning.

Source: Forbes, "This Week In Credit Card News: Declining Credit Card Debt, Avoiding the Outrageous Fees," Bill Hardekopf, Sep. 20, 2013

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