Holiday credit card debt can lead to financial challenges

With the approaching year’s end and the holidays winding up, many people in Broward County may suddenly find themselves facing a large amount of credit card debt. This is not uncommon since retailers often pull out all the stops to entice shoppers with end-of-year sales and fabulous discounts. Sometimes, people find that they have over-extended themselves and this can create unexpected financial challenges.

If people are unable to make the payments on their credit cards, these balances are sent to in-house and third-party collection agencies. One action that credit card companies may take is to get a court order that takes money out a person’s paycheck. This is often a last resort since there may be other creditors taking the same step and that means that the credit card companies are the last in line for payment in this manner.

This is why credit card companies and collection agencies will often rely on phone calls as a collection method. While credit card companies that are making their own attempts to collect payment can call a person’s place of employment, third-party agencies are prohibited from engaging in this kind of behavior. However, that doesn’t stop them from calling people during day hours.

Whether a person is dealing with credit card debt, medical debt or other financial challenges, there are options out there. One of these options is bankruptcy which can give people the ability to address the debt they have accumulated in a way that allows them to create a new financial foundation for themselves. Speaking to an experienced lawyer may be a good idea in order to understand how this method works.

Source: The Tribune, “Consequences of Black Friday debt: Collection calls and wage garnishment,” Ed Zalewski, Dec. 8, 2013