When Ohio residents are facing financial difficulties, they may not always be aware of some glaring warning signs that could be pointing to overwhelming debt. Parties who heavily rely on credit may find themselves with considerable credit card debt if they have reached credit limits on one or, possibly, more cards. In these cases, parties may face fees for going over spending limits, increased balances due to interest accumulation and other additional issues. As a result, they may wish to consider bankruptcy.
Parties may also find themselves breaking out the credit card for the majority of their purchases. In some cases, using a credit card to accumulate bonus points or other rewards may be an acceptable action, especially if the user pays off his or her balance. However, if an individual is simply using credit cards for purchases because he or she does not have the money to buy items, debt may be out of control.
Another major sign of serious financial problems is if a party is using a credit card to pay off another credit card balance. Individuals may think that this method is useful, but it is likely only making the situation worse. Parties are continuing to accrue debt while not truly paying down other balances.
If individuals are facing any of these warning signs, they may wish to thoroughly examine their financial state. If they find themselves overwhelmed with debt that they are unable to repay, they may wish to consider filing for bankruptcy. Ohio residents may find information on Chapter 7 and Chapter 13 bankruptcies helpful when working to find more stable financial ground.
Source: fool.com, "7 Signs Your Credit Card Debt Is Out of Control -- and 5 Ways to Fix It", Matthew Frankel, Oct. 31, 2015