Any financial difficulties can be overwhelming and distressing, but when unemployment is the cause of financial problems, there may be a dire need to deal with mounting debt that seems to have no end. Credit card debt can compound when a person is unemployed. In Florida and elsewhere, unemployment is a major cause of bankruptcy, and it may interest some to know that credit card debt can be effectively handled by filing for bankruptcy.
While weighing the bankruptcy options or waiting for the process to unfold, there are steps those dealing with credit card debt can take to ensure a brighter financial future and a smoother bankruptcy process in general. One step is to inform creditors of a problem. Creditors want to work with those who are struggling and may be to help those on the verge of filing for bankruptcy by possibly lowering payments or suspending payments until bankruptcy is approved or credit card debt is discharged altogether.
Another way to deal with credit card debt while waiting for bankruptcy to be approved is to avoid more financial problems. This means avoiding the urge to finance more or take out cash advances. Pay day loans can be a downward spiral for anyone regardless of the amount of credit card debt a person has. For extra cash flow while legal matters are dealt with, it may be best to borrow from a loved one until unemployment is not an issue or bankruptcy is declared.
Bankruptcy can be a lifeline for those who are unemployed, especially if that unemployment is a long-term situation. Credit card debt can naturally mount and cause more issues for anyone in Florida who is out of work. With the help of a bankruptcy lawyer, credit card debt may be discharged and anyone struggling may better understand his or her options as financial stability is sought.
Source: nerdwallet.com, “How to Handle Credit Card Debt While You’re Unemployed“, Erin El Issa, June 23, 2015