Did your medical emergency spark credit card debt?

On Behalf of | Aug 6, 2021 | Credit Card Debt

You may or may not be among those in Tennessee who consider themselves adept at handling finances. Even if you’re typically organized and on top of things such as paying bills on time, setting money aside in savings and living within your means, any number of issues can arise unexpectedly to cause disruption in your financial plan. In fact, some situations can get out of hand much more quickly than one might imagine, leading to credit card debt and a full-blown financial crisis.

No one expects an emergency to occur

While you know that no one can predict the future, you also likely don’t go through daily life “waiting for the other shoe to drop” or expecting an emergency to occur. However, if you’re on the way to work and a distracted driver hits you or someone in your household is having serious health problems, what was once a stable financial portfolio can become a crisis situation.

Having a credit card available can be helpful in an emergency, but when you have no alternative but to use your card to pay medical bills or other expenses associated with an emergency, the situation can become stressful when you’re unable to satisfy the balance on your card at the end of a pay cycle.

Unsecured debt versus secured debt

When you have a secured debt, it basically means that you own property that a lender could possess if you’re unable to pay back your loan. Credit card debt and medical bills are both unsecured debts, meaning that they are not attached to property that can be repossessed, such as a vehicle or a boat. Filing for certain types of bankruptcy not only discharges unsecured debt but also ensures that you do not receive harassing phone calls from creditors.

Build a strong support network from the start

There’s no reason to be embarrassed about financial problems. Such situations happen to people in Tennessee and throughout the country all the time. The experienced legal team at Richard Banks & Associates is well-versed in credit card debt issues and all aspects of bankruptcy regulations. By requesting a free consultation, you can take the first step toward resolving a financial crisis and gaining support to lay the groundwork for a stronger financial future.

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