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Study You do not have to be bad with money to succumb to credit card  debt Atlanta, GA

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Study: You do not have to be bad with money to succumb to credit card debt

While credit card debt is certainly a challenging dilemma, many individuals, if asked, would also maintain that it is a dilemma caused by circumstances outside their control – an assertion that is now backed by recent research. Indeed, according to a new study conducted by Demos, a public policy think tank, even frugal individuals may end up with high credit card bills due to unexpected hardships, such as the loss of employment or unforeseen medical expenses.

Interestingly, the study also noted that, contrary to popular belief, there simply is little evidence to support the claim that those with credit card debt have irresponsible spending habits when compared to those with no debt. In fact, in many situations, those with accumulated credit card debt actually spend less than their debt-free counterparts.

Common causes of credit card debt

Although the recent study explored several potential reasons for the accumulation of credit card debt, two significant explanations proffered were unemployment and medical issues.

For instance, perhaps unsurprisingly, the study found that credit card debt was 14 percent more likely in households where someone had been unemployed for at least two months. Furthermore, of the households surveyed, more than 60 percent of those with credit card debt claimed out-of-pocket medical expenses contributed to it.

Sadly, these findings merely bolster the unfortunate reality that, during times of greatest need, many individuals come to rely upon credits cards by necessity and not by choice.

Dealing with credit card debt through bankruptcy

Thankfully, bankruptcy can often provide relief for Georgians buried under credit card debt. For example, Chapter 7 bankruptcy typically permits individuals to discharge unsecured credit card debt – meaning the debt may be eliminated.

However, if an individual is considering bankruptcy as a way to dig out from under credit card debt, he or she should be wary of using cards for several months before filing bankruptcy. For example, under the bankruptcy code, if an individual purchases luxury goods or obtains significant cash advances during the time leading up to a bankruptcy filing, the court may determine that the debt is nondischargeable.

Additionally, a credit card company may argue that card transactions completed shortly before bankruptcy were made without the intent to ever pay them back, in which case the debt may also be nondischargeable. Accordingly, it is often best to avoid any dispute by simply not using credit cards during this period.

If you have any questions regarding the dischargeability of credit card debt through bankruptcy, it is best to consult with a knowledgeable bankruptcy attorney. An experienced attorney can fully explain your options as well as help ensure you get the fresh financial start you are entitled to under the law.

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    Jamie L. Gingold, PC
    5.0 / 5.0

    Based on 28 reviews

    Jack L.

    They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

    Karen B.

    Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

    Lyla B.

    I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

    Julie T.

    Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

    Julie T.

    I contacted getting old and getting old regarding some old tax debt and credit card debt that I needed to address and had been putting off. miss Irving in the office was very very nice and put me at ease. I met with Jaime Gingold. She was very nice and explained the procedure to me and what would be left owing to the Internal Revenue Service and the State of Georgia after my case was done. My case has now been completed and I am on my way to a new start. Thank you Gingold and Gingold for all of your help.

    Anna T.

    Amazing! Outstanding!! They went over and beyond..I would recommend them to anyone needing a lawyer!!

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