Break The Credit Card Vicious Cycle And Become Debt Free

As 2011 winds down, many Americans reflect on the past year and hope for a better year to come in the future. Over the last year, we have seen huge swings in the stock market as well as inflation starting to ramp up. Over in debt Americans are starting to lose confidence in any kind of recovery of the US economy. Unemployment is still hanging around 9% and even though the government keeps telling us not to worry, it seems there’s no light at the end of the tunnel as companies are continuing to move out of the country for cheaper labor.

In the beginning of the year it seemed that the US had turned the corner as credit card spending started to decrease and people started talking about becoming debt-free. As with many dreams, you wake up and it comes to an end. Currently, consumers have returned to their old ways and credit card debt has risen 66% when compared to the same time last year. This is craziness because when Americans should be working towards becoming debt-free are now on their way to filing bankruptcy being buried under a mountain of credit card bills.

When the economy was good, Americans thought there was no end in sight and the borrowing and spending became a vicious cycle. Now with not enough money to make ends meet, these people are forced into using their credit cards to pay for basic essentials. As the government wants America to get back to spending to boost the economy, these folks are already buried in debt so far that they will never see the light of day without filing for bankruptcy. The government, using Keynesian economists, believes that the US needs to spend its way out of debt. Historically, this is never worked and will only prolong the agony of the recession.

For many, using their credit cards is a way of survival. The only way to break this vicious cycle is to file for bankruptcy. Filing Chapter 7 bankruptcy will stop all the craziness and wipe out all unsecured debt. This will give the consumer a way to break the cycle and get the fresh start that a bankruptcy filing promises. The expressions, living paycheck to paycheck and robbing Peter to pay Paul no longer have to be a reality, but a past memory. Don’t worry about what the creditors say, because once the Chapter 7 bankruptcy is filed they will no longer be able to contact the debtor. When filing bankruptcy the automatic stay is put in place stopping all collection activity including threatening phone calls, letters, e-mails, foreclosure, wage garnishments, lawsuits and judgments. This is the most powerful tool a bankruptcy attorney can use in their arsenal against creditors. Now, if the creditors have something to say they can call the Car Accident Attorney Kansas City to discuss it with them. In the end, the debtor will get a bankruptcy discharge wiping out all their unsecured debt as far as the east is from the west and put them on the road to becoming debt-free.