High Credit Card Interest Payments Eliminate Most Bankruptcy Alternatives
An interesting article appeared today in the Wheeling West Virgina Intelligencer and Wheeling News Register describing the plight of a man whose credit card company lowered his credit limit retroactively, and then started charging him an over-limit fee, and a higher rate of interest.
Unfortunately this has become an all too common problem. You get a credit card with, in this case, an $8,500 limit. Two years later the credit card company reduces your limit to $6,500. Since you cannot come up with $2,000 to get it paid down, they start charging you an over-limit fee. Because you are over your limit, they also raise the interest rate on your credit card, from 9% to 35%.
Even worse, when his other credit cards see what has happened, they do the same thing, raising his interest rates on those cards as well.
This man is now faced with no bankruptcy alternatives. He is quoted in the article as saying: If it is going to take filing for bankruptcy, I will file for bankruptcy. Unfortunately when credit card debts get this large, personal bankruptcy may be the only option.
Posted by Bankruptcy Alternatives Blog
@ 7:58 AM
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