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Credit card debt hits high marks in October

Massachusetts residents may find themselves overwhelmed by credit card debt this holiday season. It can affect a person's day-to-day life, family relationships and relationships in the workplace. Facing a cloud of financial uncertainty hanging can be very difficult. It can lead to high costs, including debt collectors calling at work and at home. Fortunately, there are several options for those who are dealing with a large amount of credit card debt. One of those options, Chapter 13 bankruptcy, includes a method to eliminate debts through gradual repayment.

U.S. consumers increased their revolving credit in October of this year, according to a report from the Federal Reserve. Revolving credit is a sum that helps to reflect money owed on credit cards. It hit the highest marks since September of 2010 in the month of October. The increased level of debt is linked to the government shutdown, when many workers were without regular paychecks for 16 days. Total consumer credit, an amount that excludes home loans, rose $18.19 billion in October as well. That was the largest gain since May of 2010.

With debt levels rising, many consumers may feel overwhelmed. One option to reduce debt is through Chapter 13 bankruptcy. If a Massachusetts resident meets certain requirements for the filing, it will allow the filer to be flexible in a repayment schedule. A consolidation of debt may allow an individual to have a fresh financial start. It can sometimes take up to five years to pay off debt through Chapter 13, but it allows for flexibility not afforded in other options.

Massachusetts' residents know that getting out of debt should be a financial priority. With debt levels rising in the U.S., some individuals can look to Chapter 13 bankruptcy for consolidation and repayment of their financial obligations.

Source: The Wall Street Journal Blog, "Credit-Card Debt Hits Three-Year High," Eric Morath, Dec. 6, 2013

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