King of Prussia, PA

The problems created by a high credit card balance are numerous and can seep into all aspects of one’s life. To start, a high credit card balance can quickly become unmanageable for an individual. While minimum payments may initially only amount to $30 to $50 a month, as the balance grows the payments will as well.

If you happen to miss one or several payments, penalties may apply. These penalties can include missed payment fees and sky-high interest rates. Interest on high balance accounts accrues quickly. Once the balance reaches tens or even hundreds of thousands of dollars, the individual may endeavor to pay down the debt but only end up falling further and further behind. Needless to say, facing a debt situation of this type can feel like fighting through quicksand; the harder the individual fights to get out of debt, the further they nevertheless sink.

However, serious financial problems can exist even prior to the debt becoming unmanageable. While these problems may not yet warrant a bankruptcy filing, they are clear signs that the individual’s finances are moving in the wrong direction. For instance, simply carrying a revolving debt balance that approaches one’s credit limit can drag one’s credit score down.

Similarly, multiple, maxed-out cards raise the temptation of “robbing Peter to pay Paul.” The financial gymnastics required to balance these competing creditors is anxiety inducing, stressful, and increases the likelihood of mistakes that may trigger harsh penalty provisions described above.

Perhaps the most distressing part of falling behind on credit cards and other debts for many people are the seemingly non-stop creditor and bill collector calls. These calls are often directed at your home, work, and any other location you are frequently present. Many individuals find these calls extremely embarrassing and simply want to make them stop.