Do Not Use Savings For The Future To Pay For The Past

A few years ago, when the economy was booming, credit cards were easy to get. Almost weekly we would find a credit card offer or two in our mailboxes. A vast majority of consumers lived on credit. But then the housing bubble burst, and the economy suffered. When credit tightened up, consumers’ credit lines were reduced, leaving them with mounting credit card debt and little or no credit. Are you facing significant credit card debt and do not know what to do? If so, do not borrow from your retirement to pay for your past mistakes.

As a consumer bankruptcy attorney in Mesa, Arizona, I meet many people of all ages and from all walks of life who are experiencing financial problems. Struggling to pay their bills, many of my clients used their retirement funds to pay credit card debt that probably never will be completely paid off. As they near retirement, they realize they have significantly depleted their retirement funds, yet still have major credit card debt. When they retire, their income drops. That is generally when bill collectors start calling. Many will end up filing a Chapter 7 bankruptcy. Unfortunately, those people filing for bankruptcy who used retirement funds to pay credit card debt find that it was a waste of money. Even worse, had they filed bankruptcy first, their retirement funds would have been protected from any creditors.

While I can’t help them recover their retirement money, bankruptcy will help stop collection calls and get people out from under their debt. A Chapter 7 bankruptcy will help give you the fresh start that you need so you can make ends meet in your retirement years.