Requiem of a Credit Addict

Bankruptcy Requiem

I hear the advice of the debt management team, I review bankruptcy in the forums as it is seen, and I long for the days where easy credit made me beam. Yes, I am a credit addict.

I robbed Peter to pay Paul, I paid the minimum call, and I maxed my cards one and all. Yes, I am a credit addict.

I have heard the telephone ring, I have used the answering machine, and I have stressed over its meaning. Yes, I am a credit addict.

I watched my scores plummet, I was refused credit because of it, and I suffered from anxiety through all of it. Yes, I am a credit addict.

When stress took its toll, I no longer was on a roll, but I managed to establish a goal. Yes, I am a credit addict.

I contacted a bankruptcy attorney, I gave up my credit history, and now I no longer suffer misery. Yes, I am no longer a credit addict.

Addiction to spending and easy credit has been the downfall of many consumers in the past. In 1980, the federal government passed a special law which allowed national banks to ignore state usury limits and peg the rate of interest at a certain number of points above the Federal Reserve discount rate.

In addition, certain chartered organizations like small loan companies and installment plan sellers had their own rules. In most states, the laws do not have enough teeth to regulate credit card debt. In many cases, filing bankruptcy may be the only way a person can relieve themselves of exorbitant debt.

Law passed in the 1980s may allow you to put $10,000 on your credit card, allow the company to attach a 24% APR to it and with a 2% minimum payment, your minimum payment will never reduce your debt. If you pay $200 a month for the rest of your life, at the current federal maximum rate, you will never pay off the $10,000 of credit card debt.

Charging large sums on your credit card does not make you a credit addict. In fact, many Americans use their credit cards to make ends meet, and if you are in a tough financial position you may only be able to pay the minimum payments. Does this mean you are financially bankrupt?

As a general rule of thumb, you are financially bankrupt if your current sustainable income will not pay all of your living expenses, pay interest on outstanding loans, and reduce some of your principal on those loans while paying on them for five years.

Bankruptcy laws can be complicated and you may need assistance from a bankruptcy lawyer. If you need relief from the stress associated with debt and you live in or around the metropolitan area of Omaha, Nebraska and Iowa, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area who can answer your bankruptcy questions.

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